Yale UniversityP.O. Box 2038New Haven, CT 06521-2038
NON PROFITUS POSTAGE
PAIDNEW HAVEN, CTPERMIT NO. 526
campaign annual report2009–2010
Dear Friends,
I am delighted to bring you the Campaign Annual Report for 2009–2010, a year
of extraordinary accomplishments. This June, your cumulative Campaign giving
surpassed $3 billion, taking Yale Tomorrow to its original fundraising goal in just
four years and setting us firmly on course to reach our revised $3.5 billion goal by
June 30, 2011.
During this time of constrained budgets, your generosity is especially welcome.
Campaign contributions have an immediate impact on teaching and research at
Yale, helping to close the gap in our financial aid funding and relieving the pressure
on budgets across the University. Thanks to you, students and faculty members
can remain focused on their dual mission of education and innovation.
For example, in Yale College, a donor is enabling biologist Jo Handelsman to develop
a pioneering approach to teaching science; others have supported expanded language
instruction in Sanskrit, Tamil, and Hindi, adding an important dimension to our
curricular coverage of India and South Asia. And construction is well underway at
Ezra Stiles College, the last of Yale’s twelve residential colleges in line for a roof-to-
basement renovation.
With donor support, workers also broke ground this spring on a new home for the
Yale School of Management, clearing the way for a Foster + Partners building that
is destined to be a campus landmark. Other gifts this year are funding programs in
the Yale Repertory Theatre, fellowships for international students in the School of
Forestry & Environmental Studies, and an endowed chair for the director of the
Yale Cancer Center.
These are but a few examples of your contributions. They touch every area of the
University, and sustain the work of faculty and students. The Campaign is an e≠ort
to build an even greater Yale for tomorrow, and I am deeply grateful that alumni,
parents, friends, foundations, and corporations continue to advance this goal.
Sincerely,
Richard C. Levin ’74 ph.d.
From the President
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Dear Friends,
Conventional wisdom holds that the fourth year of a capital campaign is the most
challenging. So we are all the more pleased to recognize the steadfast support that
pushed the Yale Tomorrow campaign over $3 billion this June, at the end of its
fourth year.
For the past twelve months, despite the economic recession, donors have shown
extraordinary loyalty to the University with giving focused in two broad areas—
first, ensuring the resources to sustain the highest standards in today’s research and
learning; and second, providing new funds to continue Yale’s leadership tomorrow.
In fiscal 2009–2010, giving reached $317.3 million, bringing the Campaign total
to $3.026 billion, or 86.5 percent of its goal. As President Levin has pointed out,
contributions from alumni, parents, and friends supported every area of the
University.
Looking ahead, we are excited to be part of such a historic e≠ort as we gear up for
the final year of Yale Tomorrow. We are confident that this wonderful community
will rise to the challenge once more to meet and surpass our $3.5 billion goal by
June 30, 2011.
The following pages o≠er details of this year’s fundraising results and further
acknowledge the many donors who made this milestone possible. To all of Yale’s
supporters and volunteers, thank you. With your generous participation, we are
building a bright tomorrow for our University.
From the Campaign Co-Chairs
G. Leonard Baker, Jr. ’64
Edward P. Bass ’67
Joshua Bekenstein ’80
Roland W. Betts ’68
Susan M. Crown ’80
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campaign annual report 2009 –2010
The Financial Story
In fiscal 2009–2010, Campaign gifts played an important role in funding core
academic programs across the Yale campus. Alumni, parents, and friends were gener-
ous despite the recession, supplying new resources for teaching and research as well
as funds for financial aid, an area of growing need. All told, donors provided $317.3
million in new gifts and pledges during the period July 1, 2009–June 30, 2010.
An important contribution to this year’s Campaign total came through annual
giving, which generated gifts of over $30.5 million, up by more than $1.5 million
from 2008–2009.
Reunion giving, always a source of pride for Yale College classes, was also up in
2009–2010. The Class of 1975 achieved an all-time record for a 35th reunion, raising
more than $37 million; the Class of 1980 achieved a record for its 30th reunion with
$34 million; and five other classes moved up to the top ten, all-time, for their respec-
tive Yale reunion gift totals. To all, we extend our heartfelt thanks!
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“I am deeply grateful for the dedi-
cation of Yale alumni, parents,
and friends. Giving in 2010 has
not only supported faculty and
students, but also set us on a course
to reach and even surpass our
Campaign goal by June 30, 2011.”
Inge T. Reichenbach
Vice President for Development
Report from the Vice President for Development
Through the close of 2009–2010, the Yale Tomorrow campaign stands at $3.026 billion, or 86.5 percent of its $3.5 billion goal.
$630
$3.026
$1.147
$1.699
$2.299
$2.719
million
June 30, 2005 June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010
billion
billion
billion
billion
billion
Cumulative Campaign Giving
The generosity that buoyed the Yale Alumni Fund in 2009–2010 was evident in every area of the Campaign, with steady support from individual donors as well as corporations and foundations. Current use giving accounted for 59.0 percent of contributions, reflecting a deep appre-ciation of Yale’s immediate budgetary needs. A further 24.3 percent of gifts were directed to the Yale Endowment, supplying resources for students and faculty today and well into the future.
6
The annual Campaign total—a measure of gifts and new pledges—declined compared to last year, but the annual cash total was up, reaching $383.5 million. This figure reflects actual cash revenues flowing to Yale in 2009–2010 from Cam-paign gifts and multi-year pledge pay-ments, a positive trend moving into the last leg of the Yale Tomorrow campaign.
Campaign Giving by Source2009–2010
Alumni60.2%$191.1 million
Foundations15.8%$50.1 million
Other Individuals10.1%$32.2 million
Other Organizations6.7%$21.2 million
Corporations4.8%$15.0 million
Parents2.4%$7.7 million
Areas of Campaign Giving2009–2010
Endowment24.3%$77.0 million
Current Use59.0%$187.4 million
Facilities9.7%$30.6 million
Designation Pending7.0%$22.3 million
Annual Cash Total
2005 2006 2007 2008 2009 2010
$290.2
$440.2
$395.7
$492.8
$367.9 $383.5
Figures reflect totals as of June 30 each year | Totals are shown in millions of dollars *Campaign early commitments
Annual Campaign Total
2005 2006 2007 2008 2009 2010
$38.0*
$591.0
$517.1$555.7
$603.0
$433.9
$317.3
campaign annual report 2009 –2010
After a 24.6 percent decline in 2008–2009, this year’s positive return is cause for optimism. What were the highlights of Yale’s investment per-formance in 2009–2010?The most compelling performance came
from our marketable equity, absolute
return, and private equity asset classes.
Domestic equity returned 20.9 percent
for the fiscal year, surpassing the bench-
mark return by 4.7 percent. Yale’s foreign
equity and absolute return portfolios
bested their benchmarks with returns
of 15.0 percent and 12.4 percent, respec-
tively. Private equity rebounded from a
challenging fiscal 2009 to post a return
of 18.1 percent.
Other endowments posted better returns than Yale this year. Why is that?While Yale did well in many areas, its
relative performance su≠ered from a
large exposure to real assets. These
assets, comprised of real estate, oil and
gas, and timber, produced the Endow-
ment’s weakest results for the second
successive year, generating a loss of 4.5
percent. While real assets provide protec-
tion against inflation, which may prove
beneficial in today’s highly uncertain
global economy, in weak economic
environments they tend to produce
poor returns.
Are you planning to make any significant changes to your invest-ment approach?Returns over the past two years fall
within the expected range of outcomes
of an investment strategy that has pro-
duced handsome results for Yale (and
many other endowed institutions) over
the past two decades. This approach has
placed the University in the top tier of
institutional investors, and we believe
it will serve Yale well in the future.
What are Yale’s longer term results?Yale’s Endowment returned 8.9 percent
per annum over the ten years ending
June 30, 2010, surpassing results for
stocks, which returned negative 0.7
percent annually, and for bonds, which
returned 6.5 percent annually. Relative
to the estimated 4.0 percent average
annual return of college and university
endowments over the past decade, Yale’s
One year after sustaining investment losses of almost a quarter of its value, Yale’s
Endowment rebounded with a gain of 8.9 percent for the fiscal year ending June 30,
2010. Its value rose from $16.3 billion on June 30, 2009, to $16.7 billion on June 30,
2010, including adjustments for operating budget distributions and new gifts. During
the most recent fiscal year, the Endowment distributed $1.1 billion to the operating
budget, or 41 percent of Yale’s net revenues. David Swensen, Yale’s Chief Investment
O∞cer, discusses the year’s Endowment performance and its impact on University
operations.
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The Endowment Picture
Endowment Funding Support2009–2010
Maintenance4.0%
Books3.2%
Unrestricted25.5%
Miscellaneous Specific Purposes26.1%
Scholarships17.5%
Professorships23.7%
of other programs. Over the years, the
contributions of donors and investment
performance on those contributions have
expanded Yale’s Endowment dramati-
cally. Every gift matters.
Consider this: in 1950, Yale’s Endow-
ment was $132 million. Without sub-
sequent gifts, if that $132 million were
grown by each year’s investment per-
formance and decreased by each year’s
spending, Yale’s Endowment would be
worth roughly $3.8 billion. If you include
the impact of gifts and the investment
performance of those gifts, you get to
Yale’s actual Endowment value of $16.7
billion. The nearly $13 billion di≠erence
represents the impact of donations
over the past six decades. Those gifts
influence in a profound manner the
experience of each individual in Yale’s
community of scholars.
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$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Effects of Investment Performance on Gifts
Growth of $100,00 scholarship from 06/30/2000 to 06/30/2010 (excluding new contributions and spending)
00 01 02 03 04 05 06 07 08 09 10
Yale EndowmentMean of Broad Universe of Colleges and Universities
investment performance added $7.9
billion of value in the form of increased
spending and enhanced Endowment
value. During the ten-year period, the
Endowment grew from $10.1 billion to
$16.7 billion.
What does this mean for Yale faculty and students?To put the performance in concrete
terms, consider an endowed scholarship
fund. When considering only investment
gains, an endowment valued at $100,000
in 2000 would have grown to almost
$235,000 in 2010, a performance well
above the mean of the broad universe
of colleges and universities. When
spending is factored in, the $100,000
fund would have grown to $154,000 in
2010 and distributed over $64,000 for
financial aid.
From a big picture perspective, spending
from the Endowment for the University’s
2010–2011 fiscal year amounts to $986
million, representing approximately 38
percent of the University’s net revenues.
Endowment distributions to the operat-
ing budget have grown nearly threefold
in the last decade.
How have donors contributed to the Endowment?On a cash basis, donors gave $136 mil-
lion to the Yale Endowment during the
past year, including gifts in support of
financial aid, faculty salaries, and a range
Impact of Gifts to the Endowment1950–2010
$0
$5
$10
$15
$20
$25
50 60 70 80 90 00 10
Actual Endowment market value1950 Endowment without subsequent gifts
Totals are shown in billions of dollars
$0.132
$16.652