Endowment Returns Held Stable in Fiscal '25

"Universities saw an average return of 10.9 percent, compared to 11.2 percent in fiscal '24, according to the latest study by the National Association of College and University Business Officers and the Commonfund Institute, released today. Though down slightly year over year, the FY25 numbers are stronger than the 7.7 percent returns colleges saw in FY23 and the negative returns of FY22."

"While the returns remained stable, donations to endowment funds dropped, according to the study. Contributions to university endowments fell by 9.2 percent, from $15.4 billion in FY24 to $14 billion in FY25, as philanthropists dialed back donations. However, that number still surpasses the $12.7 billion donated in FY23. Despite the stable returns, colleges continue to face financial pressures, due in part to the Trump administration restricting certain federal research funds, which has prompted some institutions to cut jobs and programs."

"In a Wednesday media call, experts noted that returns were buoyed by a strong equities performance and a rebounding bond market, though venture capital delivered small gains. While GDP contracted, the U.S. economy remained resilient, yielding returns similar to last year. Mark Anson, chief executive officer of Commonfund, said the comparable year-over-year results were due in large part to the similar economic conditions during both fiscal years."

University endowment investments averaged 10.9 percent in fiscal year 2025, a slight decline from 11.2 percent in FY24 but stronger than FY23 and FY22 results. The 10-year average return was 7.7 percent. Contributions to endowment funds decreased 9.2 percent to $14 billion, down from $15.4 billion, though donations remained above FY23 levels. Returns were supported by strong equity performance and a rebounding bond market, while venture capital produced modest gains. The economy showed resilience despite GDP contraction. Some colleges face financial pressure from restricted federal research funding and an anticipated rise in the endowment excise tax.

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