How will MIT’s finances be affected by the economic downturn?
MIT finances will be affected in a number of ways. The most significant will be in the value of the endowment and, therefore, the funds from the endowment that support MIT’s operations. As of the end of December 2008, we estimated the value of our endowment had dropped from its June 30, 2008 value of $10.1 billion by approximately 25% in fiscal year 2009. When the value of the endowment drops, we have to decrease the distribution of funds from the endowment to the Institute’s operating budget to maintain the endowment’s purchasing power for future generations. Our finances will almost certainly be affected in other ways as well. We anticipate that donors will be less able to support MIT through gifts. The government is dedicating significant resources to fixing the economy, and this could affect how much research it can sponsor. Other research sponsors may have less flexibility to grow or continue their commitment to our research. Also, our financial aid budget may come under pressure
