ACE Releases Updated Brief on Understanding College and University Endowments

The paper-as well as its complementary summary document-addresses frequently asked questions about endowments and explains how they are created and managed, as well as how they have changed in recent years.

Data from the 2023 NACUBO-Commonfund Study of Endowments and past reports from the National Association of College and University Business Officers (NACUBO) were instrumental in revising the paper, which found that 66 percent of endowment spending in FY 2023 was on student financial aid and academic programs.

"At colleges and universities, endowments make a tangible impact on students, faculty, and campuses in myriad ways to support the aims of the institution," the paper reads. "While college and university endowments differ in size, structure, and organization, their broad purposes-to advance an institution's charitable mission to expand and enhance educational and research opportunities and programming that benefit the public good-are uniform."

The new paper comes as Congress is preparing for a significant tax reform effort in 2025. Last week, ​ACE and a coalition of higher education associations submitted comments to the Republican Tax Teams of the House Ways and Means Committee emphasizing the importance of tax reforms that would benefit students and institutions, including the repeal or reform of the excise tax on investment income of private colleges and universities.

To download the paper, click here.