Endowment

A university endowment is a large pool of invested assets — typically stocks, bonds, real estate, and alternative investments — with the investment returns funding a portion of the institution's annual operations. Universities typically spend 4-5% of endowment value annually. The largest endowments (Harvard ~$50B, Yale ~$41B, Stanford ~$37B) provide enormous financial flexibility for scholarships, faculty hiring, and research infrastructure. Endowment size per student is often more meaningful than total endowment, as it indicates the resources available to support each individual student's education.