Financial Highlights

Financial Highlights for the Fiscal Year Ending June 30, 2013

For FY2013, consolidated total assets of $996.5 million were represented on Statements of Position of the University of Louisville Foundation, Inc. (Foundation) and Affiliates. Consolidated Foundation net assets, represented as total assets less total liabilities, were $815.2 million, an increase of 4% compared to the close of FY2012. Consolidated net assets are classified as unrestricted, temporarily restricted, or permanently restricted. The chart below illustrates consolidated net asset classification as of June 30, 2013:

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Nearly eighty percent of the consolidated Foundation assets are classified as investments. For FY2013, the Foundation’s investment return reflected in the consolidated Statements of Activities were $80.6 million compared with only $3.9 million for the prior fiscal year. This increase is almost wholly attributable to realized and unrealized gains on investments totaling $73.4 million from increased economic conditions and improving capital markets.

The Foundation’s investments are allocated to various investment classes according to its goals, risk tolerance, and investment horizons. The chart below illustrates these investments by class for the FY2013 and FY2012:

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The Foundation’s vision is to assist the University of Louisville in becoming a premier metropolitan research university recognized for advancing the intellectual, social and economic development of our community and its citizens while placing the University among the top tier of similar universities in the nation. To support this vision, the Foundation contributed $86 million to the University of Louisville for FY2013.

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University of Louisville’s Office of University Advancement is the gift-soliciting arm of the Foundation. For FY2013, total gifts to the Foundation were $39.7 million for all net asset classifications. For every unrestricted $1 of gift revenue recorded, it costs the Foundation only $.32 in Advancement fundraising costs.

 

The chart below illustrates Foundation gift revenue by net asset classification as designated by the donor.

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A Tax Increment Financing (TIF) district was established for 210 acres on the former Haymarket property and surrounding blocks in downtown Louisville where the Foundation is building a life-sciences campus. Louisville Medical Center Development Corporation (LMCDC), a consolidated affiliate of the Foundation, received $5.4 million in revenue in connection with the TIF project grant and local participation agreement. This represents the initial TIF recoveries received from this agreement which has a term of thirty years.

In August 2013, the Foundation closed on a $37.6 million taxable fixed-rate bond offering. $31 million of the proceeds were used to acquire permanent financing for The Nucleus Real Properties, Inc. building, $4.1 million was used to pay off an existing Nucleus: Kentucky’s Life Sciences and Innovation Center, LLC line of credit, and $1.9 million is retained in a restricted reserve account for future bond payments.