What is the endowment and how does it work?
In simplest terms, the endowment of any organization is its savings account, the income from which can go toward operating expenses. As we assemble this magazine, St. Lawrence’s endowment stands at around $192 million (down from $230 million since early 2000, a drop similar to those at many other institutions). The trustees have authorized the University to spend no more than 5.5% of the market value of the endowment, which at the moment means disbursements of something in the very broad neighborhood of $11 million. To meet its annual operating budget, which in fiscal year 2001-2002 is just shy of $73.1 million, the University depends considerably more on comprehensive fee revenue (tuition, room and board, which comprise 57% of our annual revenue) and those all-important gifts.
