The Indiana University Foundation has spent $2.1 million to buy another piece of property near the IU campus. Here’s what we know.
The IU foundation is the university’s philanthropic arm. It raises money to provide scholarships to IU students and to support research being done at IU.
On its website, the foundation says it supports the university “by raising private gifts and by prudently managing the investment of donations to generate steady, long-term funding for the university’s people, places, and programs” and that it takes “a disciplined, consistent, and diversified approach to investment.”
The foundation on Oct. 3 spent $2.1 million to buy the building at 108 and 110 S. Indiana Ave. That’s the building across Indiana Avenue from Bryan Hall. The building houses a Starbucks.
From 2023: Indiana University Foundation owns over 60 properties in Bloomington. Here’s where.
The previous owner, Busted Block LLC, acquired the property in 2021 for $5 million. According to the Indiana Secretary of State’s office, Busted Block LLC was created in 2014. It’s registered agent is Warren Cutshall, who also is listed as in-house counsel for Bloomington-based Miller Real Estate LLC. Busted Block LLC owns several other properties in Monroe County, according to county records.
That’s unclear. The foundation did not provide a specific reason nor would it say whether it planned to retain the building’s current tenants.
Larry Costello, senior director of communications for the IU Foundation, said via email, “We acquire land adjacent to IU campuses on behalf of the University, in accordance with its master plan. This parcel is adjacent to other parcels already acquired for IU use.”
Quite a bit. The foundation and the IU trustees own about 50 parcels near campus on the west side of Indiana Avenue, which marks the edge of campus. Some of the properties are being used as parking lots, others are houses and still others have commercial tenants, including Kilroy’s and Lennie’s.
The foundation in IRS records said the value of its land, buildings and equipment is about $96 million.
The foundation’s total assets exceed $4 billion and include $3.5 billion in investments, according to IRS records.
That depends on the property’s use. If the property is used for commercial purposes, as in it’s being leased to a coffee shop, then the foundation has to pay property tax. If the property is used for educational, charitable or religious purposes, then it does not.
The foundation said on its website that in fiscal year 2023, it received contributions of $339 million, with about a third of that coming from alumni and another third from foundations. The IU foundation had about 96,000 donors in 2023 who gave nearly 158,000 gifts ranging from $1 to $31.2 million. The median gift was $25.
According to IRS records, the foundation in fiscal year 2022 generated revenue of $426 million, including $225 million in investment income.
In fiscal 2023, the foundation gave away nearly $185 million, including $62 million for student scholarships and financial aid, $54 million for faculty support and research and $48 million to support academic programs. Another $20 million supported facilities, operations and maintenance. The foundation said 17% of enrolled IU students benefited from scholarship support.
Yes. The IU Foundation has made a profit in nine of the last 10 years. Its average annual profit in the last three years was $135 million.
According to the most recent IRS filing, the foundation had 316 employees and paid $25 million in salaries, other compensation and employee benefits. Fifty of the employees received more than $100,000. The two highest paid officers each made more than $800,000, including about $450,000 each in bonus and incentive compensation.
Boris Ladwig can be reached at bladwig@heraldt.com.
This article originally appeared on The Herald-Times: IU Foundation buys yet another building near IU Bloomington campus