Why was the endowment distribution rate higher in the past?
Decisions made over the past five years to increase our level of endowment spending enabled the College to achieve many critical priorities. We enhanced financial aid to attract the best students, hired more faculty in key areas, and started construction of a range of critical new facilities. The worldwide economic downturn has caused the College – like many other institutions – to be conservative in estimating future returns on investment to reduce the volatility in our budgeting that caused a deficit of more than $30 million in fiscal 2009.
Related Questions
- What effect does the target distribution (spending) rate have on the amount of the distribution (the dollar payout) paid to the endowment beneficiaries in the long term?
- How does the distribution rate convert into dollars distributed to the individual endowment beneficiary?
- Why was the endowment distribution rate higher in the past?
