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| | Although endowment size is a relative measure of a college's financial strength and stability, there are many other factors that influence the quality of a school. For example, public universities generally have lower endowments than private institutions, but public universities receive annual taxpayer appropriations that can make up for a lower annual endowment income. In general, over time, universities earn an average of 4% per year on their endowment investments. So, a $100 million endowment investment may subsidize annual operations by $4 million per year. | | Although endowment size is a relative measure of a college's financial strength and stability, there are many other factors that influence the quality of a school. For example, public universities generally have lower endowments than private institutions, but public universities receive annual taxpayer appropriations that can make up for a lower annual endowment income. In general, over time, universities earn an average of 4% per year on their endowment investments. So, a $100 million endowment investment may subsidize annual operations by $4 million per year. |
| | + | |
| | + | Endowment size generally confers a competitive advantage to colleges with larger endowments, as shown by this table with the top 100 colleges holding 78% of all college endowment assets: |
| | + | {| class="wikitable" |
| | + | !Size of Endowment<ref>{{cite web|url=https://www.nacubo.org/-/media/Nacubo/Documents/EndowmentFiles/2019-NTSE-Public-Tables--Number-of-NCSE-Participants--FINAL.ashx|title=2019 NACUBO-TIAA Study of Endowments, and Total Endowment Market Values+, by Endowment Size and Institution Type|accessdate=2020-09-06}}</ref> |
| | + | !Number of<br>Respondents |
| | + | !% of |
| | + | Total |
| | + | !Total |
| | + | Endowment |
| | + | Value |
| | + | ($1,000)+ |
| | + | !% of |
| | + | Total |
| | + | |- |
| | + | |Over $1 Billion||107||13.9%||$493,781,531||78.3% |
| | + | |- |
| | + | |Over $500 Million to $1 Billion||82||10.6||59,115,866||9.4 |
| | + | |- |
| | + | |Over $250 Million to $500 Million||86||11.1||30,593,706||4.9 |
| | + | |- |
| | + | |Over $100 Million to $250 Million||194||25.1||31,353,350||5.0 |
| | + | |- |
| | + | |Over $50 Million to $100 Million||152||19.5||11,133,160||1.8 |
| | + | |- |
| | + | |Over $25 Million to $50 Million||93||12.0||3,477,199||0.6 |
| | + | |- |
| | + | |$25 Million & Under||60||7.8||996,013||0.2 |
| | + | |- |
| | + | |Total (All Institutions)||774||100.0%||$630,450,825||100.0% |
| | + | |- |
| | + | |colspan=5|'''Type of Institution''' |
| | + | |- |
| | + | |All Public Institutions||294||38%||$202,649,849||32.1% |
| | + | |- |
| | + | | Public College, University, or System||95||12.3||128,216,455||20.3 |
| | + | |- |
| | + | |- |
| | + | | Institution-Related Foundations||154||19.9||46,957,511||7.4 |
| | + | |- |
| | + | | Combined Endowment/Foundation||45||5.8||27,475,883||4.4 |
| | + | |- |
| | + | |All Private Colleges and Universities||480||62.0%||$427,800,976||67.9% |
| | + | |} |
| | == See also == | | == See also == |
| | * [[Endowment tax]] | | * [[Endowment tax]] |