Why is the endowment critical?

While Boston University relies heavily on current sources of income to take care of immediate needs, the endowment is critical to its long-term success. It is the foundation that keeps the University working today, while assuring support in the years to come.

The Endowment

• Gives the University flexibility and freedom to embark on new disciplines, to hire additional faculty, and to build new facilities and update existing ones
• Ensures regular funding levels for University departments and programs
• Helps stem rises in tuition by supporting University operations that are otherwise paid for with student tuition and grants

A Good Investment

The "Endowment vs. Fixed Income Yield" chart shows the greater benefit to students from a gift of $100,000 to a scholarship fund in the pooled endowment versus the same gift placed in a fixed percentage instrument. Over a period of only twelve years, the investment in the pooled endowment fund yielded $83,540. Had it been placed in a 5% certificate of deposit or a bond with a similar yield, it would have provided only $60,000. The pooled endowment yielded 39% more income for disbursement than the fixed instrument.