February 17, 2023
College Endowment Returns Fall After Soaring High
Soaring inflation put a squeeze on college endowments in the 2021–22 fiscal year, driving returns down, according to the annual report from the National Association of College and University Business Officers
The report, released today, is a marked change from the booming returns of fiscal year 2021, when endowments soared. The average return for all college endowments in fiscal 2022 was negative 8 percent, falling far short of the 30.6 percent overall average return in 2021. NACUBO also found that colleges increased their endowment spending, with dollars increasingly flowing toward institutional operating budgets, largely focused on student financial aid.
The report, released today, is a marked change from the booming returns of fiscal year 2021, when endowments soared. The average return for all college endowments in fiscal 2022 was negative 8 percent, falling far short of the 30.6 percent overall average return in 2021. NACUBO also found that colleges increased their endowment spending, with dollars increasingly flowing toward institutional operating budgets, largely focused on student financial aid.