College endowments are an important part of funding education, and for Harvard University, they are working with the largest endowment in the world. The figures are determined by financial assets that are donated to the schools with the hope that they can provide future profit by investing in the establishment. Each year, only a portion of the school’s endowment can be spent, with about five percent of the total asset value being alotted.
The endowment investment policy statement can be seen here.
Most endowments are managed by a nonprofit that works on providing the best investment results to help the university achieve its long-term goals while also providing support to sustain the university.
All of the information for the Harvard endowment can be seen below.
Harvard Endowment Size: $37.1 billion
The Harvard endowment is currently the largest academic endowment in the world. Including the university’s pension assets, capital, non-cash gifts, and donations, the Harvard Management Company is working with $37.1 billion. Approximately 12,000 funds make up the endowment.
“Harvard’s endowment, the University’s largest financial asset, is a perpetual source of support for the University and its mission of teaching and research. The endowment is made up of more than 13,000 funds; the two largest categories of funds support faculty and students, including professorships and financial aid for undergraduates, graduate fellowships, and student life and activities,” the schools official website states.
It continues, “Harvard’s endowment is a dedicated and permanent source of funding that maintains the teaching and research mission of the University. Made up of more than 13,000 individual funds invested as a single entity, the endowment’s returns have enabled leading financial aid programs, groundbreaking discoveries in scientific research, and hundreds of professorships across a wide range of academic fields.
“Each year, a portion of the endowment is paid out as an annual distribution to support the University’s budget, while any appreciation in excess of this annual distribution is retained in the endowment so it can grow and support future generations. As a result, the endowment can provide the financial foundation for the University for generations to come.”
September 8, 1636
Lawrence S. Bacow
6,700 undergraduates and 15,250 postgraduates