John F. Donahue

1924 - 2017

John F. Donahue

July 28, 1924 - May 11, 2017

After John F. (Jack) Donahue had filmed a video for the 50th anniversary of Federated Investors in 2005, the cameras kept rolling and he offered these comments about his Catholic faith that he lived and emphasized to his family and friends throughout his lifetime.

"It's what the Bible teaches you," the West Point graduate said. "If you believe your goal in life is to get to heaven, then anything you do in life needs to take you to that goal. It's like a heat-seeking missile that rejects anything outside the target. And the target is to align your work with your eternal salvation. If you do that, it is a joyful experience."

Mr. Donahue, 92, of Pittsburgh and Naples, Fla., and founder of Federated, died at his home in Naples yesterday after living a colorful and adventurous life as an entrepreneur, chief executive officer and philanthropist. But it was his strong Catholic faith and principles that guided his life.

In fact, as part of his golden wedding anniversary celebration with his wife, Rhodora, he provided the family members in attendance an important remembrance, Thoughts for a Lifetime, which reflected his beliefs. The concluding words serve as a constant reminder for his family of 13 children, 84 grandchildren and 109 great grandchildren:

"Seek Heaven as your primary goal in life. Seek to know the will of God. Pray so that you keep your faith. Receive the Eucharist as often as possible. Love one another."

Known for his behind-the-scenes generosity, most of Mr. Donahue's contributions were without recognition to the Donahue family or Federated. But to help inspire his grandchildren and great grandchildren to live generously, Mr. Donahue more recently allowed donations to be associated with the family name, such as the John F. Donahue School of Business at Duquesne University and the Donahue Tower at the Naples Community Hospital in Florida, as well as contributions to Pittsburgh Central Catholic and Oakland Catholic high schools and the Catholic Diocese of Pittsburgh.

Thoughtful spending, generosity and stewardship were emphasized to the Donahue children as youngest daughter Rebecca Foxhoven of Naples, Fla., recalls.

"As children, we created a written budget and showed Dad how our allowance would be spent so we wouldn't be frivolous," she said. "But more importantly he emphasized generosity and being good stewards. He told us to use our time, talent and treasure for God's people because it's not our money, but the Lord's."

J. Christopher (Chris) Donahue, CEO of the investment company founded by his father, recalled his dad's philosophy on donating time, talent and treasure to Catholic education, charitable causes supported by employees and efforts to improve government at the local and national level.

"Dad was very generous and would always say yes to just about anyone, especially those who had ideas to improve Catholic education. He also believed in a patriotic duty to God and country, and a big part of that duty was being active in the political process to make our government the best it could be."

Tom Donahue, chief financial officer at Federated, unexpectedly learned of his dad's big-heartedness at a Duquesne University meeting.

"During a discussion with one of the Spiritan priests, his voice cracked and he paused for a moment to regain his composure. Father then told me how inspired he was by my dad, who anonymously paid the tuition for many students over the past 50 years. Dad had a big heart and didn't care about publicity or the limelight. Only about doing what was right and living life accordingly."

After West Point, Mr. Donahue became a pilot in the Army Air Corps and learned to fly the multi-engine B-29 bomber. He flew air lifts into Berlin after World War II and progressed to become the No. 1 Pilot in the Strategic Air Command. However in those days Army promotions were based not only on ability but also on a slotting system connected to a graduation date from the Academy. As a result, he left the Army in 1950 and returned to his native Pittsburgh to begin selling mutual funds across the kitchen table. He believed passionately that the entire country would turn to funds as the investment vehicle of choice because they offered professional money management for everyday people.

Mr. Donahue had job offers in New York and other cities but settling in Pittsburgh was his only choice. The Donahue family had lived in Pittsburgh for six generations, and Mr. Donahue always came back whenever he had time off from the service. He loved the city's rich history and cultural traditions and watched the city transition from manufacturing to a service economy focused on education, health care and finance.

In 1955, he and Central Catholic grads Richard B. Fisher and Thomas R. Donnelly started Federated to create an investment management firm in Pittsburgh that would support their growing families. The early years were difficult, but in the 1960s, they raised $100 million in assets in tax-free exchange funds, enabling them to advance toward their goals.

The late 1970s brought a new and innovative product to Federated, the money market mutual fund, which led to fast and enormous growth. Thanks to money funds and Mr. Donahue's leadership, Federated by the early 1980s had grown to become the second-largest mutual fund company in the country as it focused sales efforts on bank trust departments using mutual funds to manage their cash assets. Today, Federated manages more than $360 billion in equity, fixed-income and cash products for investors in the U.S., Canada, Latin American, Great Britain, Ireland, Germany and Asia.

In creating Federated, Mr. Donahue emphasized that employees should enjoy coming to work, paint their own picture (but stay on the canvas) and always do the right thing in the right way. These and similar philosophies also were emphasized at home with his children as eldest daughter Katherine Freyvogel, the company's first external female sales professional, remembers.

"Dad inspired you with his actions, his humor and his positive outlook on life. He taught all 13 of his children that all things are possible, and he gave us the tools to be successful. Not just an education, but an approach to life that emphasized proper values and morality."

Tom Donahue summed it up by saying, "Dad would not allow the family to use the words 'I can't'. We had to say 'I think I can'. And we were always supposed to go 'up the mountain.' "

On running a business with honesty and integrity, Chris Donahue recalls his dad saying, "In the end, I have to face God. I'd rather do that having done what I believed to be the right things no matter what."

Cardinal Donald Wuerl, who served as Bishop of the Diocese of Pittsburgh, knew firsthand of Mr. Donahue's generosity and commitment to Catholic education and values when he served in Pittsburgh. Mr. Donahue created the Golden Apple awards first in Pittsburgh and now nationally to honor the best Catholic school teachers and was instrumental in founding the Extra Mile Education Foundation to provide Catholic education for inner-city children.

"Members of the Donahue family have done tremendous work to support the Catholic faith and education over the years," Cardinal Wuerl said. "They are quiet and effective models of service and charity who don't seek recognition for their good works as they embody the gospel values of Jesus Christ."

In 2006, Federated published the history of the company that highlighted Mr. Donahue's decades of leadership and contained a message from President George H. W. Bush.

"Jack Donahue is a true Point of Light. I wish everyone in the country could know, as I do, of his leadership in many worthwhile causes. He believes there can be no definition of a successful life unless it includes service to others."

Mr. Donahue, the son of the late Margaretta Bailey and John Hanley Donahue, is survived by his beloved wife of 70 years, Rhodora Jacob Donahue and their 13 children, Katherine (Thomas Jr.) Freyvogel, J. Christopher (Ann) Donahue, Maribeth (Richard) Donley, Rhodora (Dick) Barton, Patricia (James) Dolan, William (Janet) Donahue, Theresa (Alfonso) D'Orazio, Thomas (Frances) Donahue, Susan (Ronald) Petnuch, Carol (Patrick) Moore, Maureen (James) Murphy, Rebecca (Craig) Foxhoven, Gregory (Kimberly) Donahue, 84 grandchildren, 109 great grandchildren, and numerous nieces and nephews, as well as his sisters Katherine Kirby and Margaretta Garman. He was preceded in death by his sisters, Marion Rush and Gladys Ostrowski.
Mr. Donahue was raised in the Stanton Heights area of Pittsburgh and graduated from Saint Raphael's Elementary School and Central Catholic High School. A member of the ""Greatest Generation,"" Mr. Donahue served five years with the Strategic Air Command as a B-29 pilot after graduating from West Point after the end of World War II.
Friends will be received at St. Ann Catholic Church at 475 9th Ave. South, Naples, FL 34102 on Thursday May 18 and Friday, May 19, 2017 from 6:30 p.m. to 8:30 p.m. A Mass of Christian Burial will take place in Naples on Saturday, May 20, 2017 at 11 a.m. at St. Ann Catholic Church. In Pittsburgh, friends will be received at John A. Freyvogel Sons, Inc. (freyvogelfuneralhome.com) 4900 Centre Avenue at Devonshire Street on Tuesday May 23, 2017 from 2:00 p.m. to 4:00 p.m. and from 6:00 p.m. to 8:00 p.m. On Wednesday, May 24, 2017 at 11:00 a.m., a Memorial Mass will be celebrated at St. Paul Cathedral in Oakland. Cardinal Donald Wuerl and Bishop David Zubik will celebrate the liturgy. In Pittsburgh, friends will be received in the social hall of St. Paul Cathedral following the memorial Mass.
With heartfelt appreciation, the Donahue family thanks caregivers in Naples, Ligonier and Pittsburgh who have assisted Mr. Donahue, as well as friends and colleagues from Federated for their well wishes, prayers and assistance.
Remembrances may be made to Central Catholic High School and the Little Sisters of the Poor.