An Essential Source of Funding

  • The endowment has become an increasingly important element in the university's funding of more student aid, pioneering research, innovative teaching programs, and new technologies. The endowment is also essential to the university's ability to attract and retain senior faculty and to maintain a vast physical infrastructure, including classrooms, libraries, laboratories, and health care facilities.
  • As of June 30, 2017, university endowment assets totaled approximately $1.22 billion. For context, total endowment assets as of June 30, 2016, were $1.083 billion and as of June 30, 2012, were $693.5 million. Performance in FY17 of the endowment's Long-Term Investment Pool was approximately 12.4 percent.
  • Rutgers' endowment is modest for the university's size and complexity. America's wealthiest colleges and universities have endowments well exceeding $1 billion. The most recent survey released by the National Association of College and University Business Officers and Commonfund Institute covering fiscal year 2016 lists Rutgers' endowment at $1.083 billion, placing the university 86th nationally in overall size of its endowment.
  • Rutgers' endowment consists of thousands of funds, and most donors typically restrict their gifts to specific purposes. About 60 percent of the university's endowment funds are permanently restricted, and 43 percent of these restricted funds are dedicated to scholarships and fellowships.
  • In 2017, the university reviewed the "Statement of Investment Objectives and Guidelines," which defines the investment process, policies, guidelines, and objectives of the endowment.
    • The objective of the endowment is “providing for future spending needs while meeting current spending needs.”
    • “The endowment has a long-term investment horizon and serves as a perpetual asset to the university.”
    • “The long-term objective is to achieve a total return averaging at least the spending policy plus inflation, net of fees and expenses. Returns in excess of this amount will provide for the long-term growth of the endowment.”