University Endowments

Types

General university endowment funds and restricted endowments for specific areas (e.g., professorships, scholarships, fellowships)

Structure

Self-sustaining source of funding with a specific legal structure intended to indefinitely perpetuate a pool of investments

Primary Purpose

Provide ongoing financial support for educational missions, teaching, research, and public service

Funding Mechanism

Donations and other financial assets are invested, with returns used to fulfill the organization's mission or support specific programs in perpetuity

Total Assets (FY2021)

$927,174,812,000 (across all US institutions)

Total Assets (Recent)

Over $870 billion (across US institutions, as of last year/FY2024 data)

Spending Rate (Typical)

4% to 5% annually

Largest Endowment (FY2024)

Harvard University ($52 billion)

Third Largest Endowment (FY2024)

Yale University ($41.4 billion)

Second Largest Endowment (FY2024)

University of Texas System ($47.5 billion)

Institutions with Endowments > $1 billion

62 (1.6% of all colleges and universities)

Institutions with Endowments > $50 million

657 (approximately 16% of 4,000 public and private nonprofit colleges)

Median Endowment (across 658 institutions)

$243 million

Median Endowment (private colleges and universities)

Approximately $7.9 million

2021-09-30

2023-06-30

2023-06-30

2023-06-30

2024-06-30

2024-06-30

2024-06-30

Learn about our editorial policies University endowments are comprised of money or other financial assets that are donated to academic institutions. They have a specific legal structure that is intended to indefinitely perpetuate a pool of investments for a specific purpose. University endowments work by acting as a self-sustaining source of funding by intentionally not paying out the entire fund balance. ### Key Takeaways [...] University endowment funds are an important source of revenue for many higher education institutions. Endowment funds support the teaching, research, and public service missions of colleges and universities. In addition to a general university endowment fund, institutions may also maintain a number of restricted endowments that are intended to fund specific areas within the institution, including professorships, scholarships, and fellowships. [...] Endowments are funds or assets donated to universities or other institutions to provide ongoing financial support. These assets are typically invested, and the returns are used to fulfill the organization's mission or support specific programs in perpetuity. Article Sources

2 Understanding College and University Endowments A n endowment is an aggregation of assets invested by a college or university to support its educational mission in perpetuity. An institution’s endowment actually comprises hundreds or thousands of individual endowments. An endowment allows donors to transfer their private dollars to public purposes with the assurance that their gifts will serve these purposes for as long as the institution continues to exist. An endowment represents a compact [...] than $10 million. The median endowment at private colleges and universi­ ties is roughly $7.9 million, which at a typical spending rate of about 4 percent to 5 percent would support an annual expenditure of between $316,000 and $340,000. Of the nation’s approximately 4,000 public and private nonprofit colleges and universities, only 657—or about 16 percent—had endowments over $50 million. Only 62 institutions (1.6 percent of all colleges and universities) had endowments exceeding $1 billion. Of [...] For private—and increasingly for public—colleges and universities, endowments provide stability, flexibility, and a degree of confidence for the future. They enable institutions to aim higher and to achieve their educational and charitable purposes more effectively. These benefits—to the institutions and to those they serve—justify the effort necessary to build and maintain endowments. For students, their families, and society generally, endowments allow 8 Understanding College and University

At $52 billion, Harvard University has the largest endowment nationally, with Mark Zuckerberg, Bill Gates, and Ken Griffin among its megadonors. In second is the University of Texas System, worth $47.5 billion as of fiscal year 2024. Yale follows next, at $41.4 billion, seeing among the strongest investment returns over the last decade. University endowments held more than $870 billion in assets last year, largely dominated by America’s elite institutions. [...] While Harvard, Yale, and Stanford have amassed tens of billions in assets, the median endowment stands at $243 million across 658 institutions. Overall, endowment assets increased by 4% in 2024 driven by donations and investment returns. This graphic shows the largest university endowments in America, based on data from the NACUBO via College Transitions. Harvard Leads Nationally [...] As the largest university endowment worldwide, Harvard boasts a number of wealthy donors including Michael Bloomberg and hedge fund billionaire John Paulson. After the Trump administration froze billions in grants and funding, it raised $1.1 million across more than 4,000 online donations in the first two days after stating it would push back against their demands. Overall, the fund holds $52 billion in assets, as shown in the table below: entries per page Search:

| | | | | --- --- | | Rank | Institution name | FY23 endowment market value | Change % | | 1 | Harvard University | $49,495,108 | 0.1 | | 2 | University of Texas System | $44,967,186 | 5.4 | | 3 | Yale University | $40,746,900 | -1.5 | | 4 | Stanford University | $36,495,000 | 0.4 | | 5 | The Trustees of Princeton University | $34,058,774 | -4.8 | | 6 | Massachusetts Institute of Technology | $23,453,446 | -5.2 | | 7 | Trustees of the University of Pennsylvania | $20,962,965 | 1.2 | [...] Among the 20 wealthiest universities, the median endowment was a crisp $17.1 billion, increasing by an average of 1.9%. Only three institutions in the top 20 broke the 2023 average gain of 7.7%: the University of California System, John Hopkins University and Duke University. John Hopkins had by far the highest jump at about 28%, and the UC system came behind with an almost 15% uptick. However, seven universities experienced a decrease in endowment, the worst being Washington University at [...] | 8 | The Texas A&M University System & Related Foundations | $19,285,472 | 5.7 | | 9 | University of Michigan | $17,875,691 | 3.0 | | 10 | The Regents of the University of California | $17,689,324 | 14.7 | | 11 | University of Notre Dame | $16,616,524 | -0.7 | | 12 | Northwestern University | $13,699,895 | -3.0 | | 13 | Trustees of Columbia University | $13,642,667 | 2.7 | | 14 | Duke University | $13,237,963 | 9.3 | | 15 | Washington University | $11,467,279 | -6.4 |