[quote]
According to the most recent statistics, Exeter, which a year ago held $800,000 per student, was already among the 25 richest private schools in endowment per student, measured not just against other prep schools but also against universities and colleges. A growing number of endowments at the nations independent schools have become so big that trustees have hired full-time money managers, sometimes alumni, to manage their money. </p>
<p>Generally the older, best-known schools have the largest endowments. Phillips Exeter, founded in 1781, is the nations third-oldest school after Governors Academy in Byfield, Mass., and Phillips Academy in Andover, Mass., which now has $800 million. Choates endowment has reached $267 million.</p>
<p>But some day schools, where endowments are generally far lower, are doing very well, too. The Westminster Schools in Atlanta have over $239 million in their coffers and the Brearley School in Manhattan has $100 million.</p>
<p>Today, capital campaigns at New Yorks private schools are likely to aim at $50 million, Ms. Bass said. That is almost the ground floor.
<p>Very interesting. Exeter's endowment is much larger than Georgetown University's.</p>
<p>Just a side note... Kamehameha School in Hawaii has an endowment of $7.7 billion (as of 2006). Apparently, only five schools (Harvard, Yale, Stanford, Princeton, MIT) have more.</p>
<p>It is even more interesting when the endowment per student is noted. For example Exeter has about $900,000 per student, St. Paul's School's endowment is approximately $825,000 per student while elite universities such as NYU = $57,000 per student and Georgetown University = $93,000 per student. Brown = $340,000 per student, Penn = $295,000 per student, Columbia = $311,000 per student, Boston College = $129,000 per student, Wellesley = $714,000 per student. Pomona, Amherst, Grinnell, MIT & Swarthmore all have about $1,000,000 per student-- placing all 5 in the top 8 of all 850 colleges and universities re: endowment per student (only Princeton, Harvard & Yale have higher endowment per student numbers). Univ. of Chicago = $583,000 per student, and Northwestern Univ., which ranks either #11 or tied at #7 for total endowment, breaks down to either $407,000 or $450,000 per student. Notre Dame's endowment soared to $544,000 per student. Penn State = $37,000 per student.</p>
<p>Georgetown's endowment has reached $1 bil Georgetown</a> University: Endowment Hits Record High
I am curious to see how Exeter's endowment and % on fa plays out in the future. The rationale to alums was that they wanted to become need blind. I suspect that the need for $1bil was based on a very conservative return. I think not-for-profits don't pay taxes on endowment income, so I'm curious to see how it plays out in years of great returns.</p>
<p>Alabama is probably upset that it missed the billion dollar mark by a slim margin as it closed the fiscal year with an endowment of $999,816,000, averaging approx. $43,000 per student, which is about equal to the Univ. of Wisconsin's endowment per student.</p>
<p>Lvilleslacker-
Hmmmm.
That's strange...
Umm sorry?
I guess I will check next time, but I read it from the same excerpt that the original post came from...</p>
<p>The NYT's article was poorly worded and slightly incorrect. Harvard's endowment is equal to $2,070,846 per Harvard student. Exeter's endowment breaks down to less than $900,000 per Exeter student. Exeter's per student endowment is about 41% to 44% of Harvard's per student endowment. Both the NYT and the WSJ education editors and writers have been doing substandard analysis and, occasionally, writing over the past year or so. Often I wonder if it is due to bias as they both sure do love to fudge the "facts" to favor certain schools---especially Exeter.</p>
<p>Education articles are "hot" material for newspapers and magazines; if they need a bump in circulation numbers it is best to highlight a college or prep school article. But they want control, not unbiased, independent research. This is true not only for the NYT, but also for publications such as Boston Magazine and others. One of the best aspects of posting on College Confidential is that you can't get away with anything. This is great for writers, opinion makers and readers. It also "toughens up" the younger members seeking critiques.</p>
<p>
[quote]
I think not-for-profits don't pay taxes on endowment income, so I'm curious to see how it plays out in years of great returns.
[quote]
You are correct, they don't.<br>
In addition, nearly all budget to use 4% of a rolling 3 (some use 5) year average of the total endowment. So the amount available varies based on the market of course but also based on how long the principal has been at the high point. So, this year, if they use 1/1/08 for the starting point, they have one year at $1billion, but the previous 2 were not making the average lower, and the income lower. Next year both the average and the income will go up becuse there will be 2 years at the $2billion + mark (unless the market tanks).<br>
It is interesting bcause I know there is the growing sentiment among some in the college arena of "how much money do you really need?" And a push to give more of it back to students somehow. I wonder if/when that will reach secondary schools.</p>
<p>It has already reached several elite prep boarding schools. Phillips Exeter Academy has made a dramatic turnaround from being a somewhat stingy need aware school to a generous, need blind institution. Others have also been quietly altering their financial aid programs. Some avoid publicity because percent of students receiving financial aid has been slightly reduced while enhancing financial aid packages to the remaining recipients by increasing grants and eliminating or reducing loans. Secondary schools also want to avoid increased government regulation. Many secondary schools use the same financial advisors as do the wealthy colleges and universities and, therefore, have access to similiar advice regarding investments and potential increased regulation of investments.</p>