How is the downturn in the global economy impacting endowment spending?
During 2008-09, Duke’s endowment, like university endowments across the globe, suffered significant investment losses. Between July 1, 2008, and June 30, 2009, the investment return on the university’s endowment pool was negative 24.3 percent. Because endowment spending is based on a trailing three-year average, investment losses in one calendar year impact spending for the next three fiscal years. In response to endowment and investment declines and a projected slowing of other revenue streams, Duke officials are working to close an estimated $125 million budget shortfall over three years. While not insignificant, this gap is considerably smaller than at some other leading universities that depend more heavily on endowment returns to fund operations. Spending for Duke University’s endowment typically covers about 15 percent of its operating budget; many of Duke’s peers rely on endowment to cover 30-40 percent of their operating budgets. In spite of the university’s anticipated budget
