Endowment Returns Held Stable in Fiscal ’25

Despite an economy marked by turmoil and the Trump administration’s on-again, off-again tariffs, university endowment investment returns remained stable in fiscal year 2025.

Universities saw an average return of 10.9 percent, compared to 11.2 percent in fiscal ’24, according to the latest study by the National Association of College and University Business Officers and the Commonfund Institute, released today. Though down slightly year over year, the FY25 numbers are stronger than the 7.7 percent returns colleges saw in FY23 and the negative returns of FY22.

The 10-year average return for endowment investments was 7.7 percent.

While the returns remained stable, donations to endowment funds dropped, according to the study. Contributions to university endowments fell by 9.2 percent, from $15.4 billion in FY24 to $14 billion in FY25, as philanthropists dialed back donations. However, that number still surpasses the $12.7 billion donated in FY23.

Despite the stable returns, colleges continue to face financial pressures, due in part to the Trump administration restricting certain federal research funds, which has prompted some institutions to cut jobs and programs. At the same time, the nation’s wealthiest colleges are bracing for an increase in the endowment excise tax passed last year as part of President Trump’s One Big Beautiful Bill Act.

Here’s a look at the results of the latest NACUBO-Commonfund study.

Big-Picture Outlook

In a Wednesday media call, experts noted that returns were buoyed by a strong equities performance and a rebounding bond market, though venture capital delivered small gains. While GDP contracted, the U.S. economy remained resilient, yielding returns similar to last year.

Mark Anson, chief executive officer of Commonfund, said the comparable year-over-year results were due in large part to the similar economic conditions during both fiscal years.

“When you think about 2025, we had a strong U.S. economy, the employment data was still positive, inflation was moderated. Everything related to [artificial intelligence] continued to push the financial markets, particularly equity markets, higher and stronger,” Anson said on the call.

The study included 657 participating colleges and universities, with a total of $944 billion in reported endowment assets. But officials noted that significant wealth remains concentrated in a handful of institutions.

“While there are a small number of institutions that receive widespread public attention for the size of their endowments, the vast majority of colleges and universities operate with far more limited resources,” NACUBO president and CEO Kara Freeman said on Wednesday’s call.

Top Endowments

The NACUBO-Commonfund study found that 125 of the 657 participants had endowments valued at more than $1 billion. Another 30 had endowments worth more than $5 billion. (Those 30 control $552 billion, or 58.5 percent, of endowment dollars represented in the study.) But across all institutions, the median endowment came out to $253.6 million.

The nation’s top 25 richest institutions remained largely unchanged from last year.

Harvard University continues to be the nation’s wealthiest institution, with an endowment of $55.6 billion. Harvard is trailed by Yale University with an endowment of $44.1 billion, Stanford University at $40.7 billion, Princeton University at $36.4 billion and the Massachusetts Institute of Technology at $27.3 billion, rounding out the top five according to this year’s report.