PrincetonUniversity
A Princeton Profile, 2004-05
The Endowment
Princeton's endowment is the fifth largest in the country, with a value of more than $9.6 billion as of March 31, 2004 (Harvard University, Stanford University, the University of Texas, and Yale University have larger endowments). The endowment is invested in a diversified group of assets, including domestic and international stocks and bonds, independent return managers, private equity, venture capital, real estate, and other assets not traded on organized trading markets.
Princeton's portfolio has historically experienced solid returns. The total return on Princeton's endowment -- defined as ''dividends and interest on portfolio holdings, plus or minus capital appreciation or depreciation'' -- was equivalent to approximately 14.7 percent per year over the 27-year, 9-month period ending March 31, 2004.
Giving to Princeton
Gifts from undergraduate and graduate alumni, parents, and friends are vital to sustaining Princeton's historic mission and keeping the University at the forefront of higher education. The generosity of Princetonians of all ages and from every part of the world supports excellence in teaching, innovation in research, and advancement of the University's long traditions of service.
In recent years, Princeton has greatly expanded its programs of education and scholarship; enhanced the academic, residential, cultural, and athletic facilities of its landmark campus; and restructured its financial aid program to ensure that every student who is admitted to Princeton can attend, regardless of his or her economic circumstances. The Classes of 2006, 2007, and 2008 are among the first to benefit from sweeping new financial aid policies -- including the replacement of all student loans with scholarships and grants -- designed to make the University accessible to students of all backgrounds.
Many of the University's current fund-raising priorities center on the need for new construction and programming to support a planned increase in the undergraduate population by some 500 students. In addition, there are significant new initiatives to advance Princeton's engineering programs, extend the international reach of academic offerings, enhance the creative arts on campus, and sustain the sciences. New funding is essential to undergird Princeton's groundbreaking financial aid program; endow professorships and freshman seminars; secure advanced library and computing resources; and support multidisciplinary academic programs in areas such as international studies, environmental sciences, and law and public affairs. Major building projects include a new residential college; dormitory construction and renovation; new and renovated facilities for the humanities, the sciences, and engineering; and the University's first unified science library.
Annual Giving. Critically important to Princeton's continuing vitality, Annual Giving provides unrestricted funds that can be used to meet the University's most important and pressing needs, including financial aid, faculty support, and library and computing resources. This yearly campaign provides approximately 10 percent of Princeton's overall budget for education and general expenses.
In its 64-year history, Annual Giving has raised nearly $630 million for Princeton. The 2003-04 Annual Giving drive produced $36.5 million in unrestricted funds, with 59.2 percent of all undergraduate alumni participating. Annual Giving owes its success to an extraordinary volunteer effort that reaches out to Princetonians and friends from all over the world through class events, personal meetings, phone calls, the mail, and e-mail.
Endowment and Capital Giving. Expanding the University's leadership in higher education requires significant gifts in support of specific projects, from professorships and scholarships to buildings and renovations. Princeton seeks designated gifts and bequests from undergraduate and graduate alumni, parents, and other friends of the University. Endowment funding is essential to support continuing needs such as professorships, library acquisitions, new and expanded academic initiatives, and undergraduate scholarships. Current capital priorities include major residential life and campus improvement projects. In addition, the University seeks funds for academic programs and research from corporations and foundations.