What is the endowment? What is its purpose? What is its value?
The endowment differs from the Annual Fund in that money contributed to the endowment is invested, and the principal is not used to meet immediate needs. Instead, the endowment is money that secures the future of St. John’s College. Every year, about 5% of the value of the endowment is drawn and used toward the cost of operating the college. The market value of the endowment as of July 1, 2006 was about $101 million. Contributions to the endowment can be either unrestricted (used for any purpose) or specified for a certain purpose, such as financial aid or the libraries. A healthy endowment is critical for St. John’s. In years of good markets, the excess yield is channeled back into the endowment to continue its growth. The St. John’s College endowment is highly diversified so as to minimize risk.
