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University Endowments

02/23/2011

Associations Comment on SEC Proposed Municipal Advisor Rule(2) [+]

A group of 12 higher education associations, including AAU, sent a letter to the Securities and Exchange Commission on February 22 providing detailed comments on a proposed rule on SEC registration of municipal advisors.

03/03/2010

GAO Report on University Endowments

01/26/2009

Facts about College and University Endowments [+]

College and university endowment funds are an important source of revenue which support teaching, research, and public service missions. Endowments are complex; they usually consist of many—sometimes thousands—of different funds. Most of these funds are subject to restrictions that donors impose and that institutions are legally required to uphold. Endowment funds are managed to provide a current and continuing source of income to support institutions’ missions.

01/26/2009

Myths About College and University Endowments [+]

1 MYTHS ABOUT COLLEGE AND UNIVERSITY ENDOWMENTS 1. MYTH: An endowment is a single fund that a school may spend at its discretion. FACT: A typical endowment consists of hundreds, sometimes thousands, of individual funds. In most cases, the donors who have created these funds have set restrictions on how their donations

01/26/2009

Uses of College and University Endowments [+]

Student Financial Aid: A typical college or university endowment includes many individual funds that are restricted (most often by donors, but also by the institution) to student financial aid. Donor support and strong investment performance in recent years have led many institutions to increase their investment in student financial assistance. According to the College Board, the amount of institutional (i.e., non-governmental) grant aid that colleges and universities provided to their students in 2007-08 was $29.1 billion, which is $12.8 billion or 78 percent more than they provided in 1997-98. Such institutional grant aid significantly reduces the actual amount students pay in tuition and reduces student loan debt. For example, institutions that offer so-called “no loan” student assistance programs generally rely on endowment income to provide grants to low- and middle-income students who qualify.

09/08/2008

Shirley Tilghman Prepared Remarks at Roundtable on Endowments and College Costs [+]

Remarks by Shirley M. Tilghman, President of Princeton University and Vice Chair of the Association of American Universities Roundtable on Endowments and College Costs September 8, 2008 Thank you for the opportunity to participate in this discussion. I am here today in my role as vice chair of the Association of Americ

06/27/2008

AAU President Letter to Editor in Response to Senator Grassley Op-ed Wealthy Colleges Must Make Themselves More Affordable

01/24/2008

AAU Statement about Senators’ Inquiry on University Endowments and College Costs [+]

Following is a statement by Robert M. Berdahl, President of the Association of American Universities, on the letter sent to colleges and universities by Senators Max Baucus and Charles Grassley on the subject of endowments.

01/01/2008

Facts about Higher Education Financing [+]

Paying for college is a partnership. The federal government, states, institutions, foundations, and individual students and their families all have a role in paying for college.

01/01/2008

Colleges and Universities Expand Efforts to Improve Access and Affordability [+]

Below are examples of recent efforts by public and private colleges and universities to expand financial assistance to low- and middle-income students. While expected family contribution (EFC) is often zero for low-income students, it is important to note that these programs require that any calculated EFC be met. Additionally, “student budget,” which varies by institution, includes tuition, fees, books, supplies, room, board, transportation and personal expenses.

01/01/2008

Facts about College Access and Affordability [+]

A new report to Congress by the Government Accountability Office paints a far different picture of college affordability than the rhetoric on Capitol Hill and in the media would suggest. The report, Higher Education: Tuition Continues to Rise, But Patterns Vary by Institution Type, Enrollment, and Educational Expenditures, refutes common misperceptions about college costs.

11/01/2007

Comparison of Long-Term Endowment Growth Under Different Payout Rules [+]

Annual Payout on $1 million Endowment assuming 10% annual investment return $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536 Years Payout Amount Payout 3.5% Payout 5.5% --prepared by the University of VirginiaYear Endowment Value 1

10/10/2007

Associations Submit Testimony on University Endowments [+]

On behalf of the higher education associations listed above representing approximately 4,300 two- and four-year public and private colleges and universities, we are submitting this written testimony on college and university endowments for the September 26, 2007 hearing record. We appreciate the opportunity to submit this testimony to address testimony received by the Finance Committee which presented an incomplete and inaccurate picture of college and university endowments. In addition, we are responding to public policy proposals offered in witness testimony that would significantly harm the ability of colleges and universities to effectively manage their finances for the benefit of current and future students and faculty and the public good that higher education serves. While it is helpful that we are given the chance here to address the hearing testimony, it is unfortunate that the higher education community was not permitted the opportunity to present a live witness with experience and expertise managing endowments to the Finance Committee.

09/03/2007

Understanding College and University Endowments [+]

What is an endowment?An endowment is created through gifts intended for the long-term support of nonprofit institutions – from churches, hospitals, and museums to colleges and universities. Although the concept of endowment originated in England in the 15th and 16th centuries, the development of endowments for institut

05/30/2007

University Endowment FAQs [+]

NATIONALASSOCIATIONOFCOLLEGEANDUNIVERSITYBUSINESSOFFICERSMay 2007 Endowments Frequently Asked Questions What is an endowment? An endowment is comprised of all financial assets that are intended for the long-term support of a college or university. Endowments are built up over many years, primarily with donated funds. S

01/03/2000

Q&A on University Endowments -- Excerpt from ACE 2000 Document [+]

Why do institutions with large endo~vments keep increasing tuition? Institutions with endowments use them, along 14th other resources. to offer programs of -greater quality than either the endowed funds or the institution's other resources could suppoor by themselves. In many cases, donors explicitly direct their gifts

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