What you should know about USC’s endowment
Why is a university’s endowment important?
For any university, an endowment is the single-most important guarantee of long-term excellence. This is because the financial stability of an endowment enables the university to provide consistent, sustainable, high-quality resources, generation after generation. Gifts to USC’s endowment ensure that our students will have the resources and scholarships they require to excel—in perpetuity.
How does USC’s endowment compare to that of its peer institutions?
The endowments of Princeton, Harvard, Yale and Stanford on June 30, 2019— the end of their fiscal years—were $26.1 billion, $40.9 billion, $30.3 billion and $27.7 billion, respectively. USC’s is $5.7 billion.
That means the endowments of these institutions are much larger than USC’s relative to their expenses. Stanford’s $27.7 billion endowment covers about 22 percent of its operating expenses. In contrast, USC’s endowment covers less than 10 percent of its operating expenses—including less than 10 percent of the university’s annual undergraduate financial aid budget.
How are gifts to endowment different from non-endowment gifts?
Non-endowment gifts support our students until the money has been spent. For gifts to our endowment, the university carefully stewards the funds, spending only the interest it earns.
How much of an endowed fund can USC spend each year?
USC spends only the interest the endowment earns—generally between four and six percent annually. So your gift to the university’s endowment will support our students this year and every year—far, far into the future.
Growth of $100,000 Invested in the USC Endowment
Twenty Years Ending March 2022
The careful investment and stewardship of endowment funds ensure that your gift will provide enduring support, forever linking your philanthropy with USC’s legacy of academic excellence.
If student support is a priority, why can’t the university just shift its endowment expenditure to fund it?
A university’s endowment is actually made up of thousands of individual funds established by donors for very specific purposes. The university has a fiduciary responsibility to use those funds for their intended purposes in perpetuity.
See our 2023 Endowment Report
Help students reach their potential
USC’s most important mission is preparing students to excel. That mission begins with the partnership of donors like you who privately fund scholarships that help bring extraordinary students to our community—transforming their lives in the process.
“Thank you for your interest in supporting our students. I’d be happy to tell you more about the options available. Feel free to email me at lisayeh@usc.edu.”
Lisa Yeh
Associate Senior Vice President
University Advancement