The Lilly Foundation is a philanthropic organization based in Indianapolis, Indiana. It was established in 1937 by Josiah K. Lilly Sr. and his brother Eli Lilly, the founders of pharmaceutical giant Eli Lilly and Company. The Lilly Foundation is one of the largest charitable foundations in the United States and has played a major role in supporting education, community development, and arts and culture in Indiana.
The Lilly Foundation is currently led by CEO Robert J. Smith. Smith has served as CEO since 2012, overseeing the foundation’s grant programs and strategic initiatives. Prior to becoming CEO, he held various executive roles at the foundation for over 20 years.
In this article, we will take a closer look at Robert J. Smith’s background and career, his leadership of the Lilly Foundation, and the foundation’s philanthropic mission and activities during his tenure as CEO.
Early Life and Education
Robert J. Smith was born in 1957 in Indianapolis, Indiana. He earned his bachelor’s degree in business from Indiana University in 1979. After completing his undergraduate education, Smith began his career in the banking industry.
He worked for over a decade in various roles at Continental Illinois National Bank and Trust Company and American Fletcher National Bank in Indianapolis. During this time, he developed extensive experience in trust management, investments, and financial services.
In 1991, Smith departed from the banking industry when he was hired by the Lilly Endowment, the Lilly Foundation’s sister organization. This marked the beginning of his decades-long career in philanthropy and non-profit leadership.
Career Before Becoming CEO
Smith started out at Lilly Endowment in 1991 as a program director. In this role, he helped oversee grantmaking activities and developed strong expertise in education funding initiatives.
Over the next several years at Lilly Endowment, Smith took on positions of increasing responsibility. Key roles included:
– Director of Education and Public Affairs (1993-2000)
– Vice President of Education (2000-2003)
– Senior Vice President of Education and Community Development (2003-2006)
In these capacities, Smith guided grant strategies for education, community, and public policy programs. He played an instrumental part in several major Lilly Endowment initiatives, including Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) and Programa de Becas (Scholarship Program).
After 15 years at Lilly Endowment, Smith moved to the Lilly Foundation in 2006 when he was appointed Vice President of the foundation. He served as VP for six years prior to his promotion to CEO.
As Vice President, Smith directed community development, education, and youth grants for the Lilly Foundation. Major programs launched during this time included Front Porch Alliance and the Oaks Academy.
Becoming CEO in 2012
After the retirement of Eugene White, Smith was selected by the Lilly Foundation’s board of directors to become the next President and CEO in 2012. He brought over two decades of experience in philanthropy and familiarity with the Lilly Foundation’s values and mission.
According to Chairman of the Board Steve Ferguson, Smith was an ideal fit for the top leadership role at the foundation:
“Robert has a keen understanding of the Foundation’s traditions and approach to grantmaking. He has played a key role in shaping and executing the Foundation’s strategies.”
Under Smith’s leadership, the Lilly Foundation has remained committed to funding initiatives in Indianapolis that improve quality of life and create lasting community assets. At the same time, Smith has focused on enhancing operational effectiveness and exercising careful stewardship of the foundation’s financial resources.
Key Initiatives as CEO
Robert Smith stepped into the CEO role at a time when Indianapolis was still recovering from the Great Recession. A key focus of his leadership has been identifying opportunities to drive economic revitalization, especially for vulnerable populations still dealing with the downturn’s aftermath.
Major city development projects that Smith has supported as CEO include:
- Ascent 121 – Provides space for dozens of local businesses and organizations in an abandoned factory site.
- 16 Tech Innovation District – A 60-acre hub for tech firms and research located near downtown Indianapolis.
- St. Clair Place – Transformed an outdated strip mall into a community health center.
In addition to redevelopment, Smith has directed grantmaking to build up Indianapolis’ skills and education. Initiatives include:
– $12 million to support the Purdue Polytechnic High School aimed at STEM education.
– $3 million to create the Indianapolis Neighborhood Fellowship program that trains community leaders.
– $5 million over five years to fund public education advocacy through Stand for Children Indiana.
Smith has further focused the Lilly Foundation’s efforts on enhancing Indianapolis’ arts and culture scene. Major gifts under his tenure include:
- $6 million to the Indianapolis Zoo for a new International Orangutan Center.
- $4.5 million to the Indianapolis Art Center to expand itsprograms and facility.
- $2 million to the Indiana Historical Society for collections and exhibitions.
Financial Stewardship
As CEO, Smith has consistently emphasized responsible financial policies and stewardship of assets:
– Grew the Lilly Foundation’s endowment from $7.2 billion to over $10 billion through prudent investment management.
– Implemented cost-saving measures to maintain lean operations and maximize dollars available for grantmaking.
– Established greater grant disbursement controls and evaluation procedures.
Under Smith, the Lilly Foundation maintains rigorous financial discipline and transparency. This has enabled the foundation to expand its charitable impact and respond nimbly to evolving community needs.
Philanthropic Leadership
Robert Smith has provided steady and visionary leadership as CEO while upholding the Lilly Foundation’s longstanding values and principles:
– Commitment to Indianapolis – Continued focus on funding initiatives to drive progress in Indianapolis, the foundation’s home city.
– Collaboration – Emphasized partnerships with grantees and other funders to achieve shared goals.
– Addressing inequities – Prioritized grantmaking for marginalized groups and low-income communities.
– Non-partisanship – Maintained the foundation’s non-partisan nature.
Grantmaking Approach
Smith has emphasized proactive and innovative grantmaking during his tenure:
– **Proactive** – Seeks out opportunities to fund emerging needs rather than waiting for proposals.
– **Innovative** – Takes risks on unconventional ideas and solutions with potential for impact.
– **Flexible** – Structures grants and reporting requirements in context of each situation.
– **Engaged** – Works actively with partners rather than just providing dollars.
This approach has enabled the Lilly Foundation to catalyze meaningful change across Indianapolis.
Driving Operational Excellence
To leverage the Lilly Foundation’s resources for maximum community benefit, Smith has spearheaded operational improvements including:
– **Constituent focus** – Deepened understanding of grantee and community needs through surveys and outreach.
– **Technology updates** – Modernized IT infrastructure and digitized grant application and review processes.
– **Performance measurement** – Instituted rigorous evaluation procedures to assess grant outcomes.
– **Transparency** – Enhanced public disclosures through comprehensive websites and accessible program data.
The foundation’s operations under Smith are nimble, transparent, and constituent-focused. This enhances the ability to fulfill its philanthropic mission.
The Lilly Foundation’s Philanthropic Impact
The Lilly Foundation distributed over $1.1 billion in grants during Robert Smith’s first decade as CEO. This has supported charitable programs across:
| Focus Area | Total Grants 2012-2021 |
|---|---|
| Community Development | $386 million |
| Education | $303 million |
| Arts & Culture | $172 million |
| Youth Development | $118 million |
| Human Services | $108 million |
Major accomplishments under Smith’s leadership include:
– **Education** – 230,000 Indianapolis students reached through improved schools and scholarships.
– **Neighborhoods** – Over $400 million invested in revitalizing Indianapolis communities.
– **Arts** – Supported construction or renovation of 10 cultural venues.
– **Human services** – Expanded services and housing for over 20,000 vulnerable Hoosiers.
Smith has sustained the Lilly Foundation’s sizable charitable impact despite economic challenges and the COVID-19 pandemic. His prudent oversight and strategic vision have been instrumental in driving progress across Indianapolis.
Leadership Philosophy and Style
Robert Smith has articulated clear perspectives on leadership in his role as CEO that reflect his management approach:
Community Orientation
In a 2018 interview Smith stated:
“My priority is being a good listener to the needs of our community. That informs everything we do programmatically at the Foundation. We are strivers not arrivers.”
He sees community feedback as vital for shaping responsive grantmaking strategies. Smith conducts intensive outreach through meetings with non-profit leaders, government officials, and community stakeholders.
Collaborative Approach
Smith views partnerships as essential to achieving lasting change. Under his leadership, the Lilly Foundation proactively seeks opportunities for collaboration:
“The challenges facing cities today are too complex for any single entity to tackle alone. We engage partners across sectors to create synergies.”
The foundation has co-funded major initiatives with the Central Indiana Community Foundation, The Indianapolis Foundation, and more. Smith prioritizes coalition-building to drive progress on shared objectives.
Empowering Employees
Smith fosters a workplace culture that empowers staff and values their contributions. As he noted:
“Our team is intensely committed to our mission. I want our employees to feel ownership in how we fulfill that mission.”
He encourages innovative thinking and provides professionals autonomy to shape programs based on their expertise. Smith leads by example, working closely with program officers to design initiatives.
This participatory approach enables the Lilly Foundation to tap the full talents of its staff. It reflects Smith’s core belief that good ideas can come from anywhere within an organization.
Disciplined Decision-Making
Even as he encourages creativity, Smith demands rigor and judiciousness in the foundation’s operations:
“We must be disciplined stewards of our funds. Every grant dollar should create meaningful, sustainable community impact.”
Careful analysis and strategic focus guide the foundation’s grantmaking under Smith’s leadership. He expects program staff to thoroughly vet proposals and monitor outcomes. This discipline has been critical for maximizing the Lilly Foundation’s philanthropic impact.
Awards and Recognition
Robert Smith’s exceptional leadership of the Lilly Foundation has earned him distinguished recognition, including:
– The Kiwanis Foundation of Indianapolis awarded Smith its 2011 Community Leadership Award.
– In 2014, Smith received the Indiana Philanthropy Award from the Indiana Grantmakers Alliance.
– The Greater Indianapolis Progress Committee presented Smith with its 2017 Civic Leaders Award.
– Inside Indiana Business named Smith a 2020 Community Leader of the Year.
– Most recently, Smith was honored with a 2022 Indiana Living Legend Award from the Indiana Historical Society.
These honors reflect the high regard for Smith among Indiana philanthropic, business, and community leaders. They are a testament to his civic contributions through the Lilly Foundation.
Personal Philosophy and Interests
Outside his professional life, Robert Smith is actively involved in the Indianapolis community. He applies his personal time and philanthropy towards issues and organizations he cares deeply about.
Smith has a strong commitment to youth development and mentoring. He serves on the boards of the Boys and Girls Club of Indianapolis, Youth Mentoring Initiative, and the Indiana Youth Institute.
Additionally, Smith is an avid supporter of education and the arts. He provides volunteer leadership for the Indianapolis Public Schools Education Foundation and sits on the boards of the Indianapolis Opera and Indianapolis Children’s Choir.
From a philanthropic perspective, Smith and his wife Susan have been generous supporters of conservation efforts. They funded the establishment of the Susan & Robert J. Smith Wildlife Conservancy at the Indianapolis Zoo.
Faith is also important in Smith’s life. He is a long-time member of Tabernacle Presbyterian Church where he has served as a deacon, elder, and capital campaign chair.
Sports are one of Smith’s great passions outside of work. He is a huge fan of Indiana Pacers basketball and Indianapolis Colts football. Smith also enjoys regular golf outings with friends when his schedule permits.
Friends and colleagues describe Smith as kind-hearted, thoughtful, and humble despite his prominence in the community. He is regarded as a sincere, ethical leader who cares deeply about making Indianapolis a better place for all residents.
Conclusion
Robert J. Smith’s tenure as CEO of the Lilly Foundation demonstrates exemplary nonprofit leadership. His vision, integrity, and community commitment have enabled the foundation to expand its impact across Indianapolis.
Under Smith’s leadership, the Lilly Foundation has remained nimble in responding to emerging needs, while also staying true to its longstanding mission and values. Driving this work is Smith’s philosophy of listening to the community, leading collaboratively, and empowering his team.
The foundation’s grantmaking and initiatives over the past decade, guided by Smith, have created tangible improvements in neighborhoods, schools, and the lives of Indianapolis residents.
While he shies away from the spotlight, Smith’s skillful stewardship of the Lilly Foundation has rightfully earned him recognition as a leading philanthropist and catalyst for positive change. As the foundation marks its 85th anniversary in 2022, its future remains bright with Smith at the helm.
