The NACUBO Endowment Study - A 50-Year Retrospective - Documenting a Period of Unprecedented Change

Oct 15, 2026

Uploaded by Callum

The NACUBO Endowment Study: A 50-Year Retrospective documents how endowment thinking and practice transformed over five decades, focusing on key developments that changed investment management. It explains the enduring value of annual, in-depth research as reliable data for endowments of all sizes to compare policies, assess practices, and identify emerging actions with institutional implications. The retrospective introduces themes such as total return investing, alternative investments, asset management shifts, and responsible, mission-based investing, alongside how endowments function as perpetual pools of assets.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages20

Reading Time50 min

AccessFree to download

Funding the Future

The Value of Endowments

Total Return Investing: A Paradigm Shift

Alternative Investments: From Fringe to Foundational

Asset Management: Complexity Drives a Turn to External Resources

Responsible Investing: A Compelling Call for Mission-based Institutions

Funding Mission

Notes and Observations

Asset Allocation

Spending from Endowment

Operating Budget Support

Gifts and Donations

About NACUBO and Commonfund Institute

Reflecting on 50 Years

The NACUBO Endowment Study: A 50-Year Retrospective Documenting a Period of Unprecedented Change Table of Contents FUNDING THE FUTURE The Value of Endowments 4 TOTAL RETURN INVESTING A Paradigm Shift 6 ALTERNATIVE INVESTMENTS From Fringe to Foundational 8 ASSET MANAGEMENT Complexity Drives a Turn to External Resources 10 RESPONSIBLE INVESTING A Compelling Call for Mission-based Institutions 12 FUNDING MISSION Notes and Observations 14 Asset Allocation 14 Spending from Endowment 14 Operating Budget Support 15 Gifts and Donations 15 Conclusion 16 About NACUBO and Commonfund Institute 17 Reflecting on 50 Years The NACUBO-Commonfund Study of Endowments (NCSE) for fiscal year 2023 marks the 50th consecutive year that NACUBO has published a Study of the endowments of institutions of higher learning. It would not be an overstatement to say that the Study chronicled five decades of unparalleled change. The investment industry and endowment management have undergone profound change in thinking and practice—and that brings us to this document: a retrospective look at a select number of developments that have changed the course of endowment management. The value of each annual Study—a look at the state of perpetual pools of funds at a point in time—lies in current, in-depth, reliable information. More than a source of hard data, the Studies enable endowments of every size and type to compare themselves to peers while also affording the opportunity to assess the policies and practices of institutions different than themselves. The value of a retrospective such as this is to understand how these annual Studies have also served as beacons calling attention to the emergence of new thinking and actions demanding to be noted, watched and considered for their implications for each institution’s own endowment. We have not sought to prepare a comprehensive review; that would warrant a book. Instead, we have focused on a few developments of overriding significance. We have called on data from past Studies to document this period of change but sought to concentrate on the larger story because topics for research evolved, new lines of inquiry opened, methodologies changed and different teams worked together over this lengthy time span. Throughout, the Study continually adapted and evolved to account for these changes. We at NACUBO pledge to maintain and enhance the Study, which is generally recognized as the most comprehensive inquiry into and reporting of endowment thinking and practice. We at Commonfund Institute have been privileged to team with NACUBO in the past and are pleased to renew our relationship. Together, we are committed to the highest professional standards of research and analysis. Moreover, we are alike in our belief that endowments play a vital role in our society and it is through that lens that we view a history-making 50 years. Kara D. Freeman President and CEO National Association of College and University Business Officers George Suttles Executive Director Commonfund Institute Funding the Future THE VALUE OF ENDOWMENTS Endowments are of tremendous value to colleges and universities but their value extends far beyond the institution to embrace the larger needs and aspirations of society writ large. To understand the nature of endowments it is important to consider their purpose. It is equally important, however, to review the institutional investment environment that existed about the time the first NACUBO Endowment Study (NES) was published in 1974. That’s because it was in this era that contemporary practices in endowment management emerged—not because they were solely the product of innovative thinking but because they were compelled by urgent concerns. On many campuses, endowments were failing to meet the needs of the institutions they were intended to support, pressured by the deferred maintenance expenses of aging buildings, rising faculty costs and growin

FAQs

What is the NACUBO Endowment Study and why is it valuable?

It is a long-running inquiry into endowment thinking and practice. Its annual research provides current, reliable information that helps institutions compare policies, evaluate practices, and consider emerging implications for their own endowments.

How does the document define endowments?

Endowments are perpetual pools of assets managed and invested by nonprofit organizations. They typically include accumulated gifts and donations, operating surpluses, investment returns, and other supporting sources aligned to institutional missions.

What major changes does the retrospective highlight across the 50-year period?

It emphasizes major developments such as total return investing, the rise of alternative investments, increasing complexity driving asset-management outsourcing, and a stronger call for mission-based and responsible investing approaches.

Oct 15, 2026

Uploaded by Callum