Create a free Diverse: Issues In Higher Education account to continue reading. Already have an account? Enter your email to access the article.

Report: College Endowments Suffer Huge Declines

College and university endowments suffered huge losses in the fiscal year that ended last June, a new report finds, but stronger investment returns in recent months point to a rebound.

The global economic crisis shrunk the ranks of billion-dollar endowments from 77 to 54 in a year’s time, according to a report Thursday that provides the fullest picture yet of endowment performance in the 2008-2009 fiscal year.

The value of university and college endowments fell almost 19 percent on average during that period in what report authors described as the worst decline since the Great Depression.

While the downturn hit all types of universities, elite schools such as Harvard, Yale and Stanford absorbed some of the deepest losses. Some of the richest private schools, which rely heavily on endowments to operate and flourished in boom times, have resorted to cutting staff and shelving construction projects.

“What last year demonstrated is that what goes up does come down and that’s what happened to college and university endowments,” said Dr. Terry Hartle, senior vice president of government and public affairs for the American Council on Education.

Things appear to be headed up again, mirroring trends in the stock market and most other investments. In the 2009 calendar year, Duke’s endowment grew 8.5 percent and Georgetown’s grew 8 percent, school officials said, and other colleges and universities have reported similar gains.

The swings are part of what has been a volatile decade for endowments, which are managed as permanent assets and are especially crucial for large private schools that don’t rely on state funding.

The trusted source for all job seekers
We have an extensive variety of listings for both academic and non-academic positions at postsecondary institutions.
Read More
The trusted source for all job seekers