![]() ![]() Pomona’s endowment in 2019 was around $2.3 billion as well, according to its audited financial statements. Pomona College’s current endowment is valued at $2.3 billion, Pomona spokesperson Mark Kendall told TSL via email. Every year, the endowment’s purchasing power needs to grow in order to meet or beat inflation and provide the necessary funds for the school’s budget. Approximately one-quarter of Yale University’s $31.2 billion endowment is restricted.Įndowment funds can be invested in order to earn income for the school and help the endowment maintain and grow its value. Different parts of the endowment may also have various levels of liquidity: how easily the funds can be accessed for immediate spending.įor example, unrestricted funds make up for less than 20 percent of Harvard’s endowment. On the other hand, unrestricted funds are assets that can be spent, saved or invested for any purpose deemed necessary by the institution. Oftentimes, contributions donors make to an endowment are restricted for use in a specific area, such as scholarships or endowed professorships. An endowment consists of financial assets, charitable donations and various kinds of investments.Įndowments are often controlled by the various schools’ Board of Trustees and the Uniform Prudent Management of Institutional Funds Act, a nationwide law excluding Pennsylvania, that provides guidance on investment and endowment decisions for nonprofit and charitable organizations.Īn endowment cannot be likened to one large bank account - it is composed of many individual funds, some of which are restricted. In short, endowment funds provide continual support for short-term needs and long-term financial stability and welfare for the students, faculty and programs within the college. TSL spent the semester researching endowments and talking to the undergraduate Claremont Colleges administration about how each college’s endowment is run - here’s what we learned. Some question why a college or university cannot spend more of its endowment during times of financial hardship or emergency and argue that they should spend more. Harvard University has an endowment of $41.9 billion, larger than the GDP of some small countries. In the wake of budget cuts and staff furloughs caused by the COVID-19 pandemic, endowments have been the center of many conversations - but what exactly are they? ![]()
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