Endowment Information

Endowment gifts are provided by donors to generate ongoing support for Iowa State students, faculty, and programs. Each endowed fund is managed and tracked separately within the foundation’s financial system. All individual endowed funds are invested as a combined pool, with each fund owning a pro-rata share of the total value and receiving a pro-rata share of the pool’s overall investment return. The purpose of this model is to grow the principal of each endowed fund and provide protection against inflation while supporting the purpose designated by the donor.

Financial and Investment Objectives
  • The primary financial objective is to preserve and enhance the pool's inflation-adjusted purchasing power net of all investment management cost, while providing funds for current spending.
  • The primary long-term investment objective of the pool is to attain an average annual real total return (net of all investment related fees) in excess of total expenditures (spending and overhead expenses), as measured over rolling 10-year periods.
Evaluating the Investment Program
  • This pool of assets requires a long-term view and must be managed with this view.
  • Asset allocation plays a critical role in preserving the assets, producing a relatively stable spending stream, and allowing opportunity for growth. These goals must be balanced in setting the asset allocation.
Endowment Oversight
  • The foundation’s board of directors has delegated oversight of the endowment to the investment committee, which is made up of donors and alumni of Iowa State with investment and financial experience. The committee’s responsibilities include the development and monitoring of the investment policy and objectives, review and adjustment of the portfolio’s asset allocation, and monitoring of manager and investment performance.
Consulting
  • Cambridge Associates LLC provides independent investment consulting services including asset allocation and spending reviews, investment guideline and policy reviews, investment manager searches and recommendations, and performance evaluations.
Custody
  • Wells Fargo Bank, N.A. provides master custody services including asset safekeeping, income collection, trade settlement, cash management, market pricing, and both consolidated and separate account reporting.

Financial Reports

The Iowa State University Foundation’s financial statements are audited annually by an independent, international audit firm in accordance with auditing standards generally accepted in the United States. The independent auditors report directly to the audit committee of the foundation board.

If you have any questions or would like a printed copy of our financial reports, contact Emily Hager at ehager@foundation.iastate.edu.

Financial Statements

Tax Returns

Form 990 (Return of Organization Exempt From Income Tax)

Note: If you would like a printed copy of the above Form 990 or our Form 990-T (Exempt Organization Business Income Tax Return), please email questions@foundation.iastate.edu to contact the Iowa State University Foundation.

Public Information Policy

Private Funds

Private funds help fund student scholarships, faculty support, programmatic support, and facility construction and renovations.

The total amount of private funds spent annually to benefit Iowa State:

FY18 - $83.4 million
FY19 - $104.1 million
FY20 - $104.5 million
FY21 - $87.1 million
FY22 - $124.8 million
FY23 - $121.2 million

Asset Allocation

The long-term pool is diversified into several asset classes.

See Definitions
See Graph

Investment Report –
Long Term Pool

The ISU Foundation’s long-term (endowment) portfolio reported a negative return of 0.7% for the quarter ending September 30, 2023 (lagging its portfolio benchmark of a positive 0.8%). Longer-term returns are 8.9% over five years and 7.8% over ten years. The pool balance as of September 30 was $1.34 billion.

Financial markets declined during the quarter as both equities and bonds were impacted by rising bond yields. The Federal Reserve signaled the likelihood of another interest rate hike yet this calendar year along with expectations for a longer period of higher rates. Persistent inflation and positive economic data continue to drive the Fed’s monetary policies. Inflation ticked up to 3.7% from the June 30th level of 3.0%. Various headwinds continued to impact the markets, including the ongoing Ukraine war, the Israel-Hamas conflict, the possibility of another government shutdown, and slowing economic growth outside of the United States. Accordingly, virtually all asset classes were negative for the quarter, except for energy as oil prices surged nearly 30%. On a positive note, the market consensus around a recession seems to have diminished to no recession or, at the worst, a soft landing in 2024.

The foundation’s diversified and global asset allocation and investment strategy is focused on the long-term nature of the endowment. Built to minimize risk (particularly in the short-term) while maximizing return, the strategy continues to provide for long-term growth and future purchasing power while delivering current spending to the university today.

See Graph