What is Endowment?

Endowment is Cornell's invested capital that generates funds to be used, in perpetuity, to support the university.

Cornell's endowment as of June 30, 2006 was $4.3 billion.

Ezra Cornell's founding gift of $500,000 and his farm was Cornell's initial endowment. Those funds continue to support the university today.
Over the years, thousands of donors have added to Ezra's endowment to provide permanent support for faculty, scholarships, academic programs, the library, and sports teams.
Cornell's endowment is its financial foundation and its security.
Most of Cornell's endowment funds are invested in the university's Long Term Investment Pool. This balanced fund consists primarily of high-quality, readily marketable stocks, bonds, and other assets.
The investment objective is to maximize total return-dividends plus market value-within reasonable risk parameters.
Each year the university spends part of its endowment earnings on current operations and on purposes designated by donors. To protect the principal against inflation, some earnings are reinvested. The amount to be spent, called the payout rate, is set by the Board of Trustees to secure and increase the endowment's buying power.

What Does Endowment Do?

Cornell's main sources of income are tuition, federal and state support, gifts, and endowment.
Unrestricted endowment earnings support the general operating budget. Other endowment funds support scholarships, book funds, professorships, or programs, as specified by donors.
Endowment income provides a hedge against downturns in the economy, federal and state budget cuts, fluctuations in the political climate, and other variables.
Today's students benefit from the endowment gifts of previous generations. Tomorrow's Cornell is being created by today's endowment gifts.

Contact Laurie Robinson '77, director of development, at 607.254.6183.