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

100 Best Nonprofits announced

News
Thursday, October 02, 2014

100NP14logo4WebOregon Business magazine has named the sixth annual 100 Best Nonprofits to Work for in Oregon.


Read more...

Water World

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

Fred Ziari aims to feed the global population.


Read more...

Two Sides of the Coin

Contributed Blogs
Wednesday, October 22, 2014
22 twosidesBY JASON NORRIS

Historically, when the leaves fall, so do the markets. This year, earnings, Europe, energy and Ebola have in common? Beyond alliteration, they are four factors that the investors are pointing to for this year’s seasonal volatility.


Read more...

100 Best Nonprofits to Work for in Oregon [VIDEO]

News
Thursday, October 02, 2014

Screen shot 2014-10-02 at 11.17.21 AMMore than 5,500 employees from 180 organizations throughout the state participated in the 100 Best Nonprofits to Work for in Oregon project.


Read more...

Shuffling the Deck

November/December 2014
Wednesday, October 22, 2014
BY JON BELL

Oregon tribes still bet on casinos.


Read more...

Healthcare Perspective

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

A conversation with Majd El-Azma, president and CEO of LifeWise Health Plan of Oregon, followed by the Healthcare Powerlist.


Read more...

What I'm Reading

November/December 2014
Wednesday, October 22, 2014

Peter Lizotte at ACME Business Solutions and Roger Busse at Pacific Continental Bank share their favorite reads.


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