Home Back Issues February 2009 University endowments decline

University endowments decline

| Print |  Email
Archives - February 2009
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

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

October 2014
Thursday, September 25, 2014

Nick Herinckx, CEO of Obility, and Jake Weatherly, CEO of SheerID, share what they've been reading.


Read more...

Downtime

September 2014
Wednesday, August 27, 2014
BY JESSICA RIDGWAY

How State Representative Julie Parrish (House District 37) balances life between work and play.


Read more...

True Blood

October 2014
Thursday, September 25, 2014
BY JOE ROJAS-BURKE

Antibiotics really aren’t magic bullets.


Read more...

Green Endeavor cleans up

News
Wednesday, August 06, 2014
080614 ULnew greenendeavorBY LINDA BAKER | OB EDITOR

Portland startup Green Endeavor strikes gold, inking a partnership with Underwriters Laboratories, an Illinois-based consulting and certification company with offices in 46 countries.


Read more...

Managing family assets: The importance of planning ahead

News
Friday, August 22, 2014
Unknown-1BY CLIFF HOCKLEY |  OB GUEST CONTRIBUTOR

When business intersects with family, a host of  situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.


Read more...

Gender Code

September 2014
Tuesday, August 26, 2014
BY COURTNEY SHERWOOD

Janice Levenhagen-Seeley reprograms tech.


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