St. Bonaventure University's endowment grew to $60 million in fiscal year 2014. The university ranked 581 out of 832 institutions in rate of return, with an 11.5% return on its endowment. This return beat the benchmarks set by the university's board of trustees. Endowments are invested and a portion of investment returns are used to fund scholarships, academic programs, and general university expenses, helping to support current and future students. The university aims to balance supporting current needs while preserving funds for the future through its conservative investment strategy.

1. Endowment surpasses $60 mil in
fiscal 2014: University ranked 581 of
832 institutions for 11.5 percent
return rate
By Lian Bunny
News Editor
Student media has publicized St. Bonaventure’s declining enrollment numbers
because of its implied financial consequences, however the media talks less
about the $60 million in its endowment.
Endowments are financial gifts to a university or college. The money is invested,
so the total asset value will remain unspent, and the school will only spend a
portion of the money yielded from the investments. This makes the original gift
amount remain constant and allows the gift amount to grow each year.
In a recent study on rates of return, the 2014 National Association of College and
University Business Officers (NACUBO)-Commonfund Study of Endowments
examined 832 institutions. A rate of return is the investments’ profit, expressed
as a proportion of the original investment.
The study stated that U.S. colleges and universities nationwide returned an
average of 15.5 percent for the 2014 fiscal year.
This means that the universities earned an average of 15.5 percent of the
endowment value through investing the gift. This is an increase to the 11.7
percent the year before.
Of the 832 institutions, the study ranked St. Bonaventure as 581, with an 11.5
percent rate of return on its $60 million of endowments.
Mary Driscoll, associate vice president for development at the University
Advancement Office, said endowments are usually given by alumni, friends,
corporations, foundations, estates or community supporters.
The minimum amount for an endowment at Bonaventure is $25,000.
Brenda McGee, senior vice president for finance and administration, said the
NACUBO-Commonfund study takes a whole host of schools with larger
endowments than St. Bonaventure’s that have different opportunities in the
investment market.

2. “We compare very favorably to the endowments our size,” McGee said.
According to McGee, the board of trustees’ investment committee decides how
the endowments are invested, along with outside advisors and consultants from
Prime Buchholz, an independent investment consultant company.
Endowments are invested in stocks and bonds mostly, with a small amount
invested in inflation hedging and real estate. Inflation hedging protects an
investment against the decreased value of a currency.
The university has a conservative investment strategy with a long-term outlook
and no extremely risky investments, McGee said.
McGee also said the university has been successful with its endowments
amount, according to the benchmarks, or goals, set by the board of trustees.
According to McGee, the one-year rate of return for the fiscal 2014 year was 10.3
percent versus the benchmark of 8.5 percent.
The three-year rate of return was 6.6 percent, beating the benchmark of 4.9
percent.
The university’s board of trustees established a policy in which the university can
only spend 5 percent of the investment’s profits.
Endowment donors may allocate their gifts to a specific cause, such as
scholarships or academic programs. The board investment committee
determines how nonspecific gifts are allocated.
Approximately $21.4 million in endowments funded 251 separate scholarships in
2014.
About $6.5 million was allocated to academic programs, which funds programs
such as the McQaude Center for Accounting Excellence. This $2 million
endowment gives scholarship aid to incoming accounting majors; helps recruit,
retain and support faculty; and provides support for student programming,
advisement and professional development.
The Franciscan Institute, involved in research and publication of Franciscan
works, received $5.3 million in endowments.
The Regina A. Quick Center for the Arts was allotted $3.5 million in endowments,
which is used to maintain the museum and provide for a curator.
The Friedsam Memorial Library received $1.1 million in endowments. According

3. to McGee, the money is primarily used to keep the library up to date on current
works.
Approximately 2.2 million is allocated to a general endowment.
McGee said Bonaventure uses the earnings on the endowment to support the
university’s annual budget, which is determined by the board of trustees.
In addition, the university has $4.8 million in unrestricted
endowments. Unrestricted endowments can be used any way the recipient
chooses.
The board of trustees decides how this $4.8 million endowment is spent at St.
Bonaventure.
The remaining approximate $15 million consists of unspent endowment gifts’
investment earnings.
“The challenge is always balancing the immediate needs, the needs of our
current students, and the needs of our future students, providing for them in an
equitable way,” McGee said.
Driscoll said she thinks students should be aware of the financial assistance they
are receiving. Then hopefully they will be able to give back after leaving St.
Bonaventure and help the next generation of students, just as they were helped.
bunnyla13@bonaventure.edu