Tufts University's endowment has been the topic of great attention this year, closing the fiscal year with an endowment of over $812 million.
This figure includes both gifts and investment earnings.
Part of this increase in endowment can be credited to a step up in donations and gifts to the University.
The current University endowment is an increase of 39 percent over the past four years at a compound rate of eight and a half percent per year. A university's endowment provides vital funding, including financial support for academic programs and financial aid.
According to Betsey Jay of the University Advancement Office of the Vice Provost, the endowment value as of March 2004 was $777 million, and by March 2005, it had reached $812 million.
"A portion of the earnings provides a critical source of funding to address ongoing University needs, including faculty and program support, graduate fellowships, and undergraduate financial aid," Jay said. "As the University prepares for a new fundraising campaign, it will no doubt set ambitious goals across the University for endowment growth."
The University's success this fiscal year, however, falls short in comparison to other elite universities such as Harvard and Yale Universities. For example, Harvard's operating budget alone matches Tufts' entire endowment. According to Executive Vice President Steven Manos - who spoke on University President Lawrence Bacow's behalf - Tufts is steadily catching up financially to some of its Ivy League neighbors.
"We have made some headway in the last few years in our comparisons to Brown [University]," Manos said.
Brown University has an endowment of $1.7 billion - amounting to about $209,000 per student. In comparison, Tufts' endowment only affords $79,000 per student. According to Manos, however, Bacow is working to steadily decrease the gap between these numbers.
"With successful fundraising and excellent investment of the endowment, we can hope to gain some more [funds]," Manos said.
Bacow has been recognized for his success in increasing the Tufts endowment this fiscal year. Manos said he attributes Bacow's achievement to his latest investment plan. "This growth has come after about five percent of the endowment per year is taken out to support our schools," Manos said.
Manos also said that Bacow has been commended for his successful increase in investment returns from Tufts alumni.
This year, Bacow as well as the University Advancement Office, have actively informed donors of opportunities to support the University, and their efforts have generated some particularly generous donations.
This past March, Bacow announced two generous gifts to the School of Arts and Sciences and the School of Engineering. One anonymous donor pledged $10 million toward the benefit of students and faculty. According to Jay, this gift will provide $4 million to establish two endowed professorships, $4 million toward endowment and financial aid, and $2 million for endowed fellowships for graduate students.
The second donation was one made by alumnus and former University trustee Edward Merrin (A '50) and his wife, Vivian, committed $3 million to endow a professorship in the School of Arts and Sciences in honor of their son, alumnus and current trustee, Seth Merrin (A '82).
This past September, real estate developer, alumnus, former University trustee, and philanthropist William Cummings committed to invest $50 million to Tufts' School of Veterinary Medicine, recently renamed the Cummings School of Veterinary Medicine.
Cummings' contribution to the University ranks among the largest ever made to a Massachusetts university.
"Our success in increasing the size of the endowment has come from the
generosity of donors," Manos said. "Among other functions, contributions from alumni and friends of Tufts have provided [students] with financial aid and helped ensure that our faculties are paid competitively."
