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

House of Clarity

July/August 2015
Monday, July 13, 2015
BY JACOB PALMER

Holding a Power Lunch at Veritable Quandary in downtown Portland.


Read more...

Fueling Up for the Climb

July/August 2015
Friday, July 10, 2015
BY GREGG MORRIS

Rita Hansen aims to scale natural gas vehicle innovation.


Read more...

Apartment Mania

Guest Blog
Thursday, June 18, 2015
4805983977 11466ce1d6 zBY BRAD HOULE | CFA

While most categories of commercial real estate have performed well, one of the most robust has been apartment buildings.


Read more...

Balancing Act

July/August 2015
Friday, July 10, 2015
BY DAN COOK

The Affordable Care Act has triggered a rush on health care plan redesign, a process fraught with hidden costs and consequences.


Read more...

Downtime with Debra Ringold

July/August 2015
Monday, July 13, 2015
BY JACOB PALMER

Dean of the Atkinson Graduate School of Management, Willamette University


Read more...

Urban benediction

Linda Baker
Wednesday, July 22, 2015
072215 THUMB Credit-PontificalAcademyofSciencesBY LINDA BAKER

Charlie Hales has long viewed sound urban planning as the route to salvation: social, economic and environmental. This week, the mayor's city design philosophy got the nod of approval from a bona fide spiritual authority, Pope Francis.


Read more...

Marijuana law ushers in new business age

The Latest
Tuesday, June 23, 2015
062315panelthumbBY KIM MOORE | RESEARCH EDITOR

Oregon’s new marijuana law is expected to lead to a bevy of new business opportunities for the state. And not just for growers. Law firms, HR consultants, energy efficiency companies and many others are expected to benefit from the decriminalization of pot, according to panelists at an Oregon Business breakfast meeting on Tuesday.


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