Endowments at 850 US colleges, universities and affiliated foundations that participated in a 2010 study of endowments gained 11.9% for the year ending June 30, 2010, a significant improvement over the average loss of 18.7% reported in the previous year’s study. The average annual return over a three-year period was a decline of 4.2%. The average spending rate for respondents was 4.5%, slightly above last year’s 4.4%, with 45% of endowments reporting increased spending, 27% reporting lower spending and 25% reporting no change. The highest spending rate for participating institutions, 5.7%, was from those with assets between $501 million and $1 billion. The lowest spending rate, 3.5%, was from institutions with assets of less than $25 million. On average, respondents indicated that 10.5% of their fiscal 2010 operating budgets were funded from an endowment, a decline from last year’s 13.4%, reflecting that the budgets for fiscal year 2010 were prepared after the 18.7% loss. Forty-two percent of respondents indicated a decrease in gifts and donations this year, compared with 60% last year. Forty-three percent reported an increase in gifts and donations, an improvement over last year’s 26%.

Source: Commonfund Institute