Stay the Course
It is an honor to serve as the next President of the Board, following Steve who provided stability and direction at a time when the Board was experiencing some unusual turnover. With his guidance we have moved forward with renewed strength and unity as we continue our mission of support to EIU. I want to thank Patti, April and Nancy for their outstanding work for the Foundation, and with their continued help, the Board will be able to explore new and innovative ways to strengthen our partnership wi
th the University.
Because of recent developments with the national economy and the continued budget crisis at the state level, the University is faced with serious cutbacks and shortfalls in its operating budget at a time when President Perry is leading the University through significant changes to become best in class and first choice for students seeking a higher education. Now more than ever the University will depend on our members and donors to help support new initiatives in programming, research, and equipment, and provide increased scholarship opportunities for its students.
In fiscal year 2008, the Foundation distributed more than $790,000 in scholarships and more than $1.1 million in grants to the University. However, at the end of October our Endowment was valued at just over $33.1 million with 1-, 3-, and 5-year returns at -26.4%, -2.7%, and 2.4% respectively. As stewards of these funds so generously given, we strive to invest our assets for maximum earnings and capital preservation. In today's challenging economic environment we are fortunate to have such a talented investment committee lead by Don Gher and supported by our good business partner, Hammond Associates. As Don reminds us, "We must keep in mind that the Foundation seeks to maximize Endowment portfolio returns consistent with prudent levels of risk. The Endowment's time horizon extends beyond normal market cycles due to the nature of the decades-long Endowment time horizon. The short-term environment is important and yields dangers, yet also opportunity. Starting approximately three years ago, the Foundation made asset allocation shifts to reduce the overall Endowment portfolio risk while still focusing on long-term returns. Those shifts included allocating a portion of the Endowment's portfolio to alternative investments, which are less correlated to equity market returns. The shifts did not completely insulate the portfolio in the recent market downturn, but they did help mitigate the decline."
We believe these actions, along with the continued fund raising efforts of the Office of Philanthropy, will help us provide the support necessary for the University to adequately serve the needs of this next generation of students. As costs continue to increase, and as state funding of education decreases, your gifts will become increasingly important to the University's ability to provide a quality but affordable education for its students.
On behalf of the Board of Directors, thank you for your generosity and dedication to EIU. We hope you will continue to work with us in this partnership by keeping the University in your charitable giving plans in the months and years ahead.
Timothy D. Gover, President
Eastern Illinois University Foundation
