Endowment
The annual endowment standings published in the Chronicle of Higher Education are greeted with as much interest in university board rooms as U.S. News' annual college rankings are in homes with college-bound students. University trustees and administrators regularly review quarterly endowment earnings reports and investment portfolios. That's how important the endowment is to a university. The bigger the endowment, the stronger the academic reputation of the university. "Endowments" is a more accurate term, because a university endowment is a combination of all sorts of endowments established by alumni and friends.
Harvard University has an $8-billion endowment, and its academic reputation is as secure as Fort Knox. Alumni know that when they invest in their alma mater, they're not only paying back the investment made by previous generations in their education, they're investing in their careers and in future generations. The value of a university endowment makes a statement about the value of every degree granted.
State support for higher education has steadily shrunk in recent decades. At Utah State University, state funding covers less than a third of the cost of a student's education. Endowment earnings help make up the difference.
Economies boom and falter. A university endowment is the Rock of Gibraltar that can weather the storms. The principal is held in perpetuity. Only the earnings are spent primarily on those priorities deemed critical to the mission of the university. At Utah State endowment earnings enhance the educational experience for students. In addition to scholarships and other necessities, earnings provide new faculty for over-enrolled courses so students can graduate on time. Earnings keep non-resident tuition inflation in check so alumni can continue to send their children to Utah State.
Ohio State and Penn State are land grant universities that have similar aspirations to Utah State's, and their endowments are worth nearly $999 million. Where does Utah State rank? Not where we would like it to be. And not where our students and faculty need it to be. That's why we're asking you to contribute, to invest in Utah State's future just as previous generations invested in your education.