Sponsored by Lane Powell
Home Archives February 2009 University endowments decline

University endowments decline

| Print |  Email
Sunday, February 01, 2009

STATEWIDE —The endowments at the state’s three largest universities have suffered along with the rest of the economy. While that revenue is not a significant portion of their budgets, it’s still a stinger.

Oregon State University’s endowment was $390 million on Sept. 30, 2007, and dropped to $334 million as of September 2008. Steve Schauble, chief financial officer for the OSU Foundation, estimates the fund will be below $300 million when current figures are reported.

“October was the worst investment period in my lifetime,” says Schauble.

Portland State University’s endowment was about $38 million in January 2008 and by Nov. 31, 2008, it was down to $26 million. “The upside of it is that our endowment is not very large,” says PSU President Wim Wievel with a bit of gallows humor. “The advantage of being poor is that you can’t lose very much.”

PSU’s endowment has a different problem than OSU and UO. “Because our foundation has recent gifts, most of our endowment accounts are underwater,” says Wievel.

At the University of Oregon, the value of its endowment was $445 million at the end of 2007. At the end of 2008, it had dropped to $365 million. Jay Namyet, chief investment officer for the UO Foundation, says that because of how the universities average their endowment payout over three years, the downturn in revenue won’t be felt immediately.

“Our payouts for 2009-2010 will be fairly equivalent to what we are currently paying out,” he says. The pain will be felt the following fiscal year if by the end of this year the economy and markets — and thus the endowment funds — are still down.

While that’s a waiting game, what’s reality right now is how declining fortunes have hit the donor base. “Outright cash [gifts are] rare now,” says Schauble. “Now they are more in the planned-gift area.”  

ROBIN DOUSSARD



Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Fast Food Slows Down

September 2014
Tuesday, August 26, 2014
BY KIM MOORE

The ubiquitous fast-food restaurant may be on the decline.


Read more...

The Alchemist

September 2014
Tuesday, August 26, 2014
BY LINDA BAKER

David Howitt explains why Portland consumer brands like Stumptown and Voodoo Doughnuts are taking the world by storm.


Read more...

The Scott Kveton affair

News
Wednesday, July 09, 2014
ScottKvetonBY LINDA BAKER | OB EDITOR

Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.


Read more...

Private liberal arts education: superior outcomes, competitive price

Contributed Blogs
Tuesday, August 26, 2014
0826 thumb collegemoneyBY DEBRA RINGOLD | OP-ED CONTRIBUTOR

Why has six years become an acceptable investment in public undergraduate education that over-promises and underperforms?


Read more...

Video: The 100 Best Survey

News
Thursday, August 28, 2014

100-best-logo-2015 500pxw-1OB Research Editor Kim Moore shares some pointers about the 100 Best Companies to Work For survey.


Read more...

What I'm Reading

September 2014
Wednesday, August 27, 2014

Kim Ierian, President of Concorde Career Colleges, and Deborah Edward, Executive Director of Business for Culture & the Arts, share their recent reads.


Read more...

A Good Leap Forward

September 2014
Wednesday, August 27, 2014
BY AMY MILSHTEIN

Agriculture businesses ramp up to meet international demand as workforce and succession challenges loom.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS