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UWM FOUNDATIONANNUAL REPORT20191

OFFICERSAndrew R. Schiesl, Esq. (’92)ChairLawrence J. Schnuck, AIA (’78, ’86)Vice ChairWilliam B. Coleman, CPATreasurerJill G. Pelisek (’80, ’83)SecretaryDIRECTORSJames T. Barry, IIIBrian J. Bear, MD (’81)Robert BukowskiLori CraigDaniel H. Ewig (’88)Christina H. Fiasca (’80)Scott HaagRoger KamauJoseph E. Kerschner, MD (’87)John W. Kersey (’79)John H. Kissinger (’79)Matt KulasaDavid Misky (’92)Kenneth Munson, Esq. (’84)Michael Orgeman, Esq.Joseph S. PoehlingCynthia J. Rigsby, Esq. (’95)Matthew Rinka (’97)Ronald SadoffTimothy G. Schaefer (’88)Fredrick J. Sitzberger, CPA (’78)Ignatius L. Smetek, CPA (’83)John Teevan (’73)Lisa Van Landeghem CPADear Friends,As I complete my final year as chair, I want to thank my fellowboard members for their ongoing support of UWM. Since I joinedthe board in 2007, the university has changed dramatically. Achievingthe Carnegie Classification of Institutions of Higher Education’sdesignation of highest research activity – often referred to as R1– and its Community Engagement Classification are just a coupleof examples. Support from the UWM Foundation has played animportant role in so many of these accomplishments.This year, we celebrated the successful conclusion of Made inMilwaukee, Shaping the World: The Campaign for UWM. The goalwas to raise 200 million in support of student success, researchexcellence and community engagement. Under the leadership ofChancellor Mark Mone and Vice Chancellor Patricia Borger, the finaltally exceeded 250 million. What a remarkable statement of theimportance of this university to the community.I am still amazed at the new things I learn almost daily about ourwonderful university and the commitment of my fellow boardmembers to this institution. I am pleased to present the 2019Annual Report, which tells just a few of these stories and providesdetail on the financial health of our organization.UWM is an integral part of this community. Thank you forsupporting our students, faculty and community partners.Dennis J. Webb (’71)Sincerely,2ADDITIONS TO UWM FOUNDATION ENDOWMENT 55MILLION 24MILLION 129MILLIONIN OUTRIGHT GIFTS & PLEDGESDeVona Wright Cottrell, Esq. (’06)UWM Foundation, Inc.1440 E. North Ave.Milwaukee, WI 53202 251,466,444Andrew R. SchieslChairUWM Foundation Board of DirectorsIN ESTATE GIFT EXPECTANCIESCURRENT VALUE OF ENDOWMENTRAISED667NEW FUNDSCREATED304 NEWSCHOLARSHIPFUNDSCREATED1

RESEARCH EXCELLENCERESEARCH CHAIR HELPS KIDS STAY HEALTHY 133MILLIONRAISED FORSTUDENTSUCCESS 89MILLIONRAISED FORRESEARCHEXCELLENCE 29MILLIONRAISED FORCOMMUNITYENGAGEMENTToday, Michele Polfuss, holder of the Joint Research Chair since 2017, continuesto explore new territory in pediatric nursing. Her research focuses on developinginterventions for families and health care providers to help children with specialneeds make healthy choices, as these children are two to three times more likely to be obese than other kids.Michele is now leading a national research team to investigate methods of accurately measuring the bodycomposition of patients with spina bifida within a clinical setting. “We want to find a feasible method ofmeasuring body fat that can be conducted cost-effectively and accurately in the clinic – and to provide betterguidance to the family on nutritional intake recommendations, with the ultimate goal of preventing andtreating obesity.”STUDENT SUCCESSCOMMUNITY ENGAGEMENTSCHOLARSHIP LEADS TO SECOND MASTER’S DEGREELEGACY GIFT ENRICHES STUDENTS AND PUBLIC“I love numbers and serving people, so I decided to go back for a secondmaster’s degree – this time in accounting with the goal of becoming a CPA,” saysTreena Glover, a graduate student in the Sheldon B. Lubar School of Business.“The Melkus Scholarship is helping me pursue this goal. I don’t know how Iwould have been able to afford school and prep for the CPA exam without it.”A serial volunteer with a bachelor’s degree in accounting and a master’s inmathematics, Treena plans to use this additional degree to help others. “Manypeople don’t know how to do taxes, they don’t have financial literacy, or theywant to start a business, but they don’t understand how to do a balance sheet,”she explains. “I want to educate others.”Treena has experience as an educator at Chicago State University, the Illinois Institute of Technology and RichardJ. Daley College. While she was working full time and raising her daughter on her own, Treena also served ascoach for a math team at her daughter’s school. “Service is a big thing to me,” she adds.Now that she has three grandchildren, Treena wants to set an example for them as well. “I am excited to earnthis degree, so I can continue to help others and make my grandchildren proud!”2The College of Nursing’s Joint Research Chair in the Nursing of Childrenbroke new ground when it was created through a gift from the Children’sHospital of Wisconsin. The position enables a faculty member to conductclinical nursing research and integrate that research into the curriculum atUWM’s College of Nursing and the clinical programs at the Children’s Hospitalof Wisconsin.Thanks to a legacy gift from the late Emile Mathis, the university now hasa prominent space for the UWM Art Collection. Part of the College of Letters& Science, the Emile H. Mathis Gallery is a state-of-the-art 2,400-square-footexhibition space located in Mitchell Hall. Here, art history students like YoungchulShin have the opportunity to research and curate exhibitions, and ultimatelyshare works of art with the public.“I enjoy seeing how artists interpret stories and historical figures in their ownstylistic approaches,” Youngchul explains. “When a collection of art is on display,I want viewers to think about how several illustrations might depict a similarsubject in various ways. In this space, I can experience the entire curation process – from selecting works todisplaying them and seeing how visitors respond to an exhibition.”Emile Mathis was an art connoisseur, collector and gallery owner whose gift to the university included more than600 pieces of African art and more than 1,700 prints. Mathis, who passed away in 2012, wanted the university touse his prized collection for teaching and display for years to come. In support of this vision, he also establishedthe Emile H. Mathis Endowment Fund to support the UWM Art Collection in perpetuity.3

2019 SUPPORT TO CAMPUS2019 SUPPORT TO CAMPUSMESSAGE FROM THE TREASURERWilliam B. ColemanThe financial health of the UWM Foundation remained very strong for the 2019 fiscalyear. As a result of the highly successful comprehensive fundraising campaign and asound investment policy, we have grown our net assets from 100 million to 176 millionsince fiscal 2012, when the Campaign for UWM began. Total assets have grown to 262 million and the investment portfolio has more than doubled to 175 millionduring that same period of time.Our support for the university is becoming ever more impactful. The foundationcontributed nearly 20 million to UWM through distributions to various programsin fiscal 2019, up from 12 million at the start of the campaign in fiscal 2012. At thesame time, we reduced our management fee for the second year in a row to 1.85%.Over the course of the campaign, we processed over 70,000 gifts and created nearly700 new funds, including over 300 new funds for scholarships. We accomplished allof this without increasing the number of staff and keeping our average annual budgetincrease at less than 4%.TOTAL DOLLARSDISTRIBUTED FROMCURRENT USE IN 2019SPECIAL PROJECTSr-- 7.37MSCHOLARSHIPS2.02M 15.SMDEPARTMENTAL /5.21M--- --RESEARCH 0.17M 1TOTAL DOLLARS ALLOCATEDFOR SPENDING FROMENDOWMENT IN 2019SPECIAL PROJECTS0.S2MDEPARTMENTAL1.34M 3.SMSCHOLARSHIPS 1.19M JPlease visit the foundation’s website at www.uwm.foundation, where we post acomprehensive list of financial data, including complete audited financial statements,990 tax returns, investment return summary and other financial information.919769ALL FUNDS IN 20192,27333823016William B. Coleman is president of Coleman & Williams Ltd, a CPA and professional servicesfirm he founded in 1990. He has numerous years in the accounting, audit and consultingprofessions. Coleman & Williams Ltd provides audit and accounting services to federal, stateand local governments, as well as nonprofits, employee benefit plans and commercial entities.As president, Bill Coleman oversees the administration and operation of the firm. He is alsois a member of the Association of International Certified Professional Accountants, AmericanInstitute of CPAs, Wisconsin Institute of CPAs, Iowa Society of CPAs, Government Finance OfficersAssociation, International Foundation of Employee Benefits and the National Association of BlackAccountants, Inc. and the Association of Government Accountants.SCHOLARSHIPNEW FUNDS ADDED IN 2019RESEARCHSPECIAL TALSPECIAL PROJECT10DEPARTMENTAL7RESEARCH5

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GROWTH OVER LAST 10 YEARSNET ASSETS 200 180 167M 160 140 120 100 80 78M 93M 100M 106M 119M 125M20142015 133M 176M 145M 60 40 20 020102011201220132016201720182019 255M 262M20182019TOTAL ASSETS 300 250 200 169M 184M 190M 192M 201M 202M20112012201320142015 210M 234M 150 100 50 0201020162017CAMPUS EXPENDITURES 25 20M 20 15 12M 12M 12M201020112012 11M 12M 14M 15M 16M 15M 10 5 0820132014201520162017201820199

MESSAGE FROMINVESTMENT COMMITTEE CHAIRRobert BukowskiEXPLANATION OF TYPES OF FUNDSEndowment Funds: donor-restricted funds intended to support campus programs inperpetuity. These include the traditional endowment funds and the flexible endowmentfunds. Endowment funds are currently invested in the 70/30 pool and spending is subjectto the annual spending allocation approved by the Investment Committee (currently 4%).The university’s endowment had strong returns for the fiscal year ending June 30, 2019.The investment performance of the total endowment pool was plus-13.5 percent. Thetotal endowment has annualized at 9 percent since January 2010. Traditional Endowment Funds – Only earnings less than the management fee maybe spent from this account pursuant to the board-approved spending policy. Principlemay not be spent under any circumstances.The primary investment objective of the foundation is to provide a real rate of returnover inflation sufficient to support UWM’s broad education mission in perpetuity. It isparticularly important to grow the assets in real terms to enable the foundation to sustainthe purchasing power of spending on programs and administration without eroding thereal value of the principal corpus. The endowment spending is allocated across threebroad categories – student success, research excellence and community engagement. Flexible Endowment Funds – Under normal circumstances, only earnings less thanthe management fee may be spent from this account. However, the Memorandumof Agreement allows for principle to be spent under specifically outlinedcircumstances.The foundation’s assets are actively invested to achieve capital growth through theappreciation of securities held through the accumulation and reinvestment of dividendand interest income. The committee meets quarterly to assess market conditions, reviewreturns against the predetermined benchmarks, evaluate the portfolio’s asset allocationand make adjustments within the parameters defined by the board-approved investmentpolicy.Historically, the endowment’s investments have outperformed the average investmentreturns for university foundations as reported by the National Association of College andUniversity Business Officers. I would like to thank all of the members of the InvestmentCommittee for contributing their expertise for the benefit of the university.Intermediate Funds: donor-restricted funds intended to support campus programsover an intermediate time horizon greater than three years. Intermediate funds arecurrently invested in the 50/50 and 30/70 pools. Spending is managed under the termsof the donor agreement.Current Use Funds: primarily restricted funds supporting campus programs spentdown over a very short-term time horizon (usually within two to three years). Thefoundation's unrestricted reserve is also invested in the current use fund pool otherthan the amount contributed to the student investment fund. The spending fund pool iscurrently invested in fixed securities.OVERALL ASSET ALLOCATION AS OF JUNE 30, 2019Robert Bukowski is the managing director and founder of AlphaInvestment Consulting Group, LLC. Alpha was founded in 1989 andprovides fee-based investment consulting services to institutionalclients. He has been actively involved in the financial servicesbusiness for over 30 years acting as an expert witness, technicalexpert, business manager, business owner and fiduciary.1011

INVESTMENT PERFORMANCEUWM PROFILEAcademicsINVESTMENT PERFORMANCE* 13 degree-granting schools and colleges, along with the GraduateSchool and School of Continuing EducationAnnualized for periods ending June 30, 201912.0%10.0%8.0% Wisconsin’s only architecture school10.3%9.7% Wisconsin’s only accredited school of public health The only school of higher education in North America dedicatedsolely to freshwater sciences6.7%6.5% 199 academic programs6.0% 1 associate program4.0% 94 bachelor’s programs 67 master’s programs2.0% 37 doctoral programs0.0%1 Year3 Years5 Years10 YearsResearch* Net of external manager fees Ranked in the top 3% of research universities, a category knownas R1, by the Carnegie Classification of Institutions of HigherEducationENDOWMENT PORTFOLIO 120 107M 100 60 37M 45M 51M 57M 65M 67M 69MStudent Profile Total enrollment: 26,167oo Milwaukee»» 4,630 graduate students2010201120122013201420152016201720182019 180 165M 175M 160 136M 140 100 73M 84M 86M 92M 99M 102Moo 1,245from all 50 states and all 72 Wisconsin countiesinternational students from 90 countriesoo Over1,000 veterans enrolled, more than anyother Wisconsin universityof undergraduates are first-generationcollege studentsoo 30%are students of colorAlumni 40 189,309 alumni 2012at Waukesha: 1,544 studentsoo 36% 109M 60 0at Washington County: 605 studentsoo UWMoo Students 200 120oo UWM Milwaukee campusTOTAL INVESTMENT PORTFOLIO 80campus: 24,018»» 19,388 undergraduates 20 0 55 million in research expenditures in 2017-18 National 2018 Campus-Wide Award for Undergraduate ResearchAccomplishment from the Council on Undergraduate Research 90M 80 40 112M 75% live in s of 12/12/1913

UWM Foundation, Inc.1440 E. North Ave.Milwaukee, WI 53202uwm.foundation14