Most colleges and universities across the U.S. spent more from their endowments despite poor or even negative returns on their investments.
The Data from the 2016 NACUBO-Commonfund Study of Endowments show that 805 participating institutions’ endowments, including Georgia’s premier colleges and universities, returned an average of -1.9 percent for the 2016 fiscal year.
Despite the decline in investment gains, 74 percent of study respondents increased the dollars spent from their endowments to support their institution’s mission.
“In spite of lower returns, colleges and universities continue to raise their endowment spending dollars to fund student financial aid, research, and other vital programs,” said NACUBO President and Chief Executive Officer John D. Walda. “These substantial increases in spending from endowments demonstrate the deep commitment colleges and universities have to student access and success. Nonetheless, this year's results are cause for concern. Continued below-average investment returns will undoubtedly make it much more difficult for colleges and universities to support their missions in the future.”
The Georgia institution with the largest endowment is Emory University, with $6.40 billion, down from $6.68 billion in 2015, according to NACUBO research.
Georgia Tech came in second with $1.84 billion, down slightly from $1.85 billion in 2015.
The University of Georgia was one of the institutions showing a slight gain of 1.2 percent in the value of its endowment at just over $1 billion.
Continued below-average investment returns will make it more difficult for colleges and universities to support their missions in the future, said William F. Jarvis, Executive Director of Commonfund Institute.
College endowment funds are designed to support an aspect of the university’s operations — such as research, student aid, scholarship or faculty salaries.
The top five endowments in the U.S. are:
1. Harvard University $35.5 billion
2. Yale University 25.4 billion
3. The University of Texas $24.2
4. Stanford University $ 22.3 billion
5. Princeton University $22.1 billion
The next five Georgia institutions with the largest endowments include:
98. Berry College $935 million
218. Spelman College $346 million
282. Agnes Scott College $223 million
287. Medical College of Ga. $210 million
307. Columbia Seminary $101 million
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