A robust endowment program has set Stanford University up to provide unique learning experiences to students who may not otherwise be able to afford it. | Pixabay
A robust endowment program has set Stanford University up to provide unique learning experiences to students who may not otherwise be able to afford it. | Pixabay
As a private research university, Stanford's fundraising efforts are the lifeblood of the school and have played an integral role in helping it establish a reputation as one of the foremost academic institutions on the West Coast.
In a university news release, Stanford reported a 5.6% investment return that resulted in a $1.6 billion net investment gain for the year. The merged pool, which is the primary investment vehicle for endowment, expendable funds and hospital reserves, rose to $30.3 billion. The endowment fund itself consists of thousands of individual gifts from donors, with most gifts restricted to personal use. The Stanford Daily reported the $1.6 billion net increase was based on “better than expected endowment returns.”
The university made a concerted effort to build the fund a little more than a decade ago with the Stanford Challenge. It was called the most successful campaign in U.S. higher education history, raising $6.2 billion when it concluded in 2011, Stanford Magazine reported. When the campaign launched in 2006, the goal was to raise $4.3 billion, which the university easily exceeded. The campaign also set the stage for additional significant fundraising efforts. Despite the COVID-19 pandemic and its impact on the economy, Stanford raised more than $1 billion in gifts and pledges in the last fiscal year, marking a 28% increase from the previous year, Stanford Daily reported.
The funding is put to good use.
The endowment covers about 22% of the university’s budget with about 5% of the fund spent each year. Donations to the Stanford Fund aids 7,000 students of whom 48% receive financial aid. Furthermore, the university reported 1 in 4 undergraduates pays zero tuition. Students whose family make $125,000 or less receive a scholarship that completely covers tuition. Those whose families make $65,000 or less also receive books and tuition. One in 6 undergraduates are the first in their family to attend a four-year university, the Stanford website reported.
Of the students graduating, 83% left Stanford with no debt last year. The remaining students who took out loans carried an average of $13,557 in debt, the university reported.
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