How universities manage their endowments

How university endowments invest in the capital markets

This PitchBook article explores how university endowments invest in capital markets to support their institutions. It explains how endowments are structured and managed to generate returns that fund scholarships, research, and operations. The piece also discusses the evolution of endowment investment strategies. This is a valuable read for understanding the financial mechanisms behind academic endowments.

Some Ivy Leagues are worth billions of dollars, managing massive endowments to support their operations and investing donations for long-term growth rather than spending them.

Evaluating college endowment returns

According to a new study, US college and university endowments achieved an average net return of 11.2% in fiscal year 2024. Harvard University maintained its position as the largest endowment, valued at $53.2B. Read this Forbes article to learn more about how institutions manage and grow their financial resources through endowments.

Student protests over endowments

College students across the country are urging their universities to divest from a range of companies—some tied to business in Israel, others linked to climate change. But what does “divestment” actually mean when it comes to billion-dollar endowments? In this episode of Planet Money, the hosts break down how endowment divestment works, and why its impact might not be as straightforward as protesters hope.

The largest university endowments in the US

This US News article ranks the 20 universities with the largest endowments in the United States, based on data from the 2022 fiscal year. Harvard tops the list at more than $50B, followed by Yale, Stanford, and Princeton. Check out this snapshot of how these financial resources support academic programs, research, and student aid.

What are college endowments? An expert explains

College endowments are meant to last forever. That's why some of the oldest, most prestigious schools in the US have lasted so long. A higher education finance expert weighs in on how these funds work and offers fascinating tidbits on how they impact university finances.

Why endowments took off at the turn of the century

After the Civil War, economic growth boosted philanthropy, much of it ending up in universities and colleges. Charles Eliot, the longtime president of Harvard, realized a university’s success was determined by how much money it could hold in the endowment. His approach to endowments radically changed their role in the modern university.

A look at Harvard University's endowment

​Harvard University holds the world's largest academic endowment, valued at $53.2B in fiscal year 2024. This official Harvard webpage explains how the endowment supports the university's mission, funding areas like financial aid, faculty positions, and research initiatives.

Reasons the wealthy like to give to universities

Every year, higher education receives the lion’s share of philanthropy for key reasons. Universities have huge budgets and can handle big sums. They also oversee a broad range of initiatives tailored to an individual’s goals, and are particularly credible institutions with long track records and strong brands.

College endowments FAQ

​The National Association of College and University Business Officers (NACUBO) is a membership organization representing chief administrative and financial officers at colleges and universities. This page addresses 10 common questions about college endowments, including their purposes, management, and spending policies. Learn more about how endowments support institutional missions and financial sustainability.

Different types of endowments, explained

​This Investopedia article provides a comprehensive overview of financial endowments—donations made to nonprofit institutions like universities, museums, or hospitals. It explains how endowments are structured, the various types (such as restricted and quasi-endowments), and how they are managed to support an institution's mission over time.

Why donors love to give to the wealthy schools

In this podcast episode of Revisionist History, Malcolm Gladwell explores why Hank Rowan’s $100 million gift to a small New Jersey college didn’t inspire others to support underfunded schools. Instead, donors continue to flock to elite institutions like Harvard and Stanford. “My Little Hundred Million” examines ways ideology and prestige have reshaped educational giving.

College budgets, explained

In this episode of the FutureU podcast, higher education experts Jeff Selingo and Michael Horn explore why so many colleges seem to be struggling financially. Hear how college budgets actually work, and why so many are unsustainable. It’s a crash course in revenue, expenses, and the big shifts schools need to make to survive.

The Yale model of investment allocation, explained

College endowment managers long held to the traditional allocation of 60% domestic stocks and 40% bonds. But Yale’s David Swensen developed a new approach: deprioritizing low-risk fixed income and liquid assets in favor of alternative investments to leverage endowments' long-term investment horizons and capture the “liquidity premium.”

Where colleges get their money, visualized

If you're curious about how different colleges and universities generate their revenue, this National Center for Education Statistics webpage offers a clear visual breakdown. See how public, private nonprofit, and for-profit institutions fund their operations, highlighting the differences between funding sources depending on the type of institution.

The future of higher education in the US

In this episode of Wired’s Have a Nice Future podcast, education journalist Paul Tough joins hosts Gideon Lichfield and Lauren Goode to tackle a big question: Is attending college in the United States still worth it? As tuition climbs and the payoff feels murkier, they dig into what’s broken in higher education, and whether it can be fixed.

Student debt is a trillion-dollar question

Former Purdue University president Mitch Daniels and others discuss the student debt crisis. This episode digs into how we got here, whether college is worth borrowing for, how to address the economic drag of student debt, and whether alternative routes to a four-year degree could be part of the solution.

Hear a finance professor answer questions about investing

From stocks and index funds to gold, a business professor at Duke University answers questions from the internet about investing.

Private K-12 schools rely on tuition; colleges rely on funding for research

Tuition, endowments, donors, and grants often fund private schools, allowing them to eschew national curriculum standards. Private colleges and universities also charge tuition, but often rely on federal funding for research.

What exactly is college for?

The rising cost of college has many of us wondering, what exactly is a college education for, anyways? This "Freakonomics" podcast episode breaks down how colleges operate like large businesses and try to differentiate their products from one another to win market share. To find out what the overwhelming higher education system is doing wrong (and what it gets right), listen here.

Some educators argue society's obsession with colleges at the top of rankings has hurt the US higher education ecosystem

Why are "good colleges" often the ones that accept the fewest students? Speaker Cecilia Orphan argues that society's obsession with colleges that are often private, expensive, and that reject applicants with high frequency has done harm. Instead, she argues, we should focus on regional public universities that meet the needs of students in a cost-achievable manner.

Bizarre college donations and the strings attached

When donors give to a college, they regularly prescribe specific stipulations, typically to fund a professorship in their name in a certain subject. But some of those stipulations are unique, including requiring annual graveside flowers, pet adoption for 150 dogs, or the consistent teaching of Ayn Rand’s "Atlas Shrugged."

See how the cost of college tuition has changed overtime

Since the middle of the 20th century, higher education has been viewed as a stepping stone to well-paying professional careers for millions of Americans. But, it can be costly. As of 2024, annual tuition currently ranges from around $10K for an in-state, four-year public university to almost $40K for private institutions.

America's top 100 universities, ranked by tuition​.

What school has the highest tuition in America? From Columbia to Ohio State, we rank college tuition across the top schools in the country.

Track how college tuition has changed over the years across different types of institutions

The dramatic rise in the cost of higher education has a number of causes, ranging from increased number of students to administrative expansion at institutions. Even when accounting for inflation, the cost to pursue a degree has tripled over the past six decades. See data from the National Center for Education Statistics breaking out costs by institution type and year.

A deep dive into Enron, one of the largest accounting scandals in history

Investing comes with great opportunities for reward, but it also carries great risk. Investors learned that the hard way when Enron collapsed. Everyone lost money—from the largest institutions on Wall Street to mom-and-pop investors who bought S&P 500 index funds. This series from American Scandal starts with a close-up into an investment manager at Enron who started to unravel the accounting scandal happening behind the scenes. Listen here.

John Oliver explains the student debt problem

From serious policy approaches to novelty giveaways from fast food chains, paying down student loans has become a central issue in public consciousness. John Oliver takes an entertaining look at the problem, how it became a political hot potato, why it’s difficult to solve, and more (warning—strong language).

Americans are projected to inherit $105T over the next 30 years

Today, someone's financial standing has more to do with their families than any other outside factor. Of the more than $100T of projected inheritance, that money is concentrated among a few wealthy estates and families.

The most expensive private schools in the US

Private schools can offer students specialized education and one-of-a-kind opportunities, but those often come with a price, with some schools charging close to six figures. Check out this list of the four most expensive American private schools, which charge more than most four-year colleges.

College football generates over $13B annually—but many programs run at a loss.

Nearly half of billionaires planned to increase exposure to direct private equity investments in 2026.

Explore a tool that shows how much stake large asset managers, including BlackRock, hold in public companies.

Use this college navigator tool to make informed decisions about college options

Balancing the benefits and costs of higher education on a school-by-school basis can be overwhelming. This database from the National Center for Education Statistics provides an easily searchable database with comprehensive information on costs, student aid, outcomes for alumni, retention rates, and much more.

The cost of college has more than tripled over the past five decades

Determining the all-in cost for each student’s specific circumstances can be tricky. But what is behind the rise in price? Analysts point to a number of factors—lack of transparency around cost, expansive government support, increased administrative burdens at schools, and more.

History’s largest intergenerational wealth transfer is happening in the next few decades

The founder of a multifamily office firm offers lessons on how to preserve wealth for generations from a global perspective, like educating younger family members.

The university system has an enrollment problem

Enrollment has dropped over the past few years—especially for men. In this Freakonomics podcast episode, educators and economists explain why they think college enrollment has been on the decline. They also offer solutions and make predictions for the future of college.

Family offices have been increasing their allocations to private credit

Private firms that manage family fortunes have been investing more in alternatives like venture capital and real estate, impacting the wider financial world.

Difficulty of getting into every Ivy League school

Harvard graduates have the highest average starting salary in the country at $91,700. But getting to graduation at any Ivy League school like Harvard is no easy feat. This visual breaks down exactly how difficult getting into an Ivy League school is, from Yale to Cornell, including average admission rates, median SAT scores, and more. See the graphic here.

American CEOs are so wealthy in part because of stock buybacks, the process of a company purchasing shares of its own stock.

How men's volleyball teams are saving struggling colleges in the US

Many colleges and universities in the US are facing severe financial pressure from a mix of decreasing research funding, lower enrollment, and, overall, a decreased interest in higher education. For some colleges, beefing up athletic programs that aren't available at all schools, like men's volleyball, is attracting new students.

Hear why one author thinks college rankings may be irrelevant

For more than three decades, US News & World Report has released an annual ranking of the country's best colleges. An extremely influential list that can determine application volume, funding decisions, and more, the rankings have been compiled by a secret algorithm indecipherable to many on the opposite side of the table. Author Malcolm Gladwell attempts to unpack the calculation, ultimately raising the question: How relevant is the list?

Hank Green on the problem with being a creator

YouTuber Hank Green takes over The Financial Diet's platform to talk about the creator economy. He walks the audience through the financial decisions involved when making content. He also describes brand deals, and who actually owns the content posted on social media platforms—the creator or the platform itself?

The wealthiest Americans own the vast majority of the stock market

Recent data from the Federal Reserve shows that the richest people in America own 93% of all the country's stock—the highest level ever recorded. Meanwhile, the bottom 50% of Americans held just 1% of all stocks.

Explore a college affordability and transparency guide

From the US Department of Education, this portal provides everything you need to evaluate colleges. The college scorecard provides handy data on every school, from graduation rates to annual average earnings out of school, while the net cost calculator directs you to each school's calculator that allows you to estimate the cost of college based on your unique circumstances.

In the early 2000s, Warren Buffett invested $1M in an index fund to show that passively managed investments would outperform hedge funds—making the point that actively managed funds are not worth the management fees they charge.

Is college worth it?

Higher education has long been viewed as a stepping stone to more stable and higher-paying careers. Estimates suggest a college degree nearly triples average lifetime earnings. But the perception of value is different—only 22% of Americans say college is worth taking out loans for.

Should companies be owned by their workers?

In the last half-century, so-called private equity has transformed industries by purchasing private companies, cutting costs, loading up debt, and then selling the business at a premium—all at a huge profit to the investors. Workers, on the other hand, are often left with nothing. Listen to how both pro-worker economists and a private equity stalwart are trying to shift ownership to workers—a growing tactic proven to improve worker satisfaction and company value.

One of Warren Buffett’s investing principles is investing in well-managed companies

The "Founders" podcast reviews biographies of the world’s top entrepreneurs, and this episode explores a 2012 book about Warren Buffett. The episode includes Buffett's advice on becoming a better business manager and investor.

Stanford and Harvard are among the universities producing the most startup founders

Not all startup founders are created equal. This data visualization of the universities that produce the most startup founders is based on the number of alumni who have raised venture capital funding for their companies. That means these alums had to do much more than put "entrepreneur" in their LinkedIn bio to be considered startup founders.

Buffett is known for being extremely generous with his fortune

So generous that in 2010 he pledged to donate 99% of his money. He said this money “can have a huge effect on the health and welfare of others.” This letter is Buffett’s philanthropic pledge, which details his commitment to giving and how luck and privilege helped him accumulate so much money.