It’s no secret that running a large institution like the University of Connecticut comes with a hefty price tag and a variety of costs and expenses. Being a student also comes with its own price. The UConn Foundation recently announced that the endowment fund designed to benefit university programs and students has seen returns of 12.1% in the last fiscal year, adding $57 million dollars.
The UConn Foundation, a separately incorporated nonprofit organization, is the primary fundraising body for the university and accepts donations to contribute to UConn and UConn Health outside of state-provided or grant funding. The endowment fund is managed by the foundation and its market value is listed as just under $600 million dollars, according to the foundation’s 2023 annual endowment report. Included in that figure is the value of multiple investments held by the foundation in public assets like stocks and bonds, and private equity in businesses and other interests.
The announced returns bring the total value of the endowment fund to $634 million dollars.
“I want to congratulate the [Foundation] Board of Directors Investment Committee and our investment staff for decisions that led to strong growth, generating millions to support students, faculty, innovation, and a vibrant Husky community,” said Amy Yancey, president of the UConn Foundation, in the announcement.
In 2023, $240.6 million dollars were allocated for student scholarships and fellowships, $151.2 million dollars for professorships and resources for professional staff and $185.5 million for experiential learning, research and technology programs, according to the report. Like any volatile financial interest, the value of the foundation’s assets can change over time, so just 4 percent of the three-year average total value of the fund is distributed to UConn per foundation policy.
The fund grows through investment returns and through donations to the foundation as part of their fundraising efforts. Last year, over $150 million dollars in new donations and commitments were received. Gifts can be earmarked for certain uses, such as money for student scholarships, the UConn Health system, and the Division of Athletics, with the largest recipient groups receiving gifts totaling upwards of $50 million dollars in 2023 according to the foundation’s annual report.
The School of Nursing, which received a single gift of $40 million dollars last year, is using the funding to support the construction of a new building facility for the program. The state of Connecticut also contributed $30 million dollars, according to the School of Nursing project page. Over 1,314 specialized funds exist for a variety of educational and extracurricular initiatives, and donations are used to offset costs related to these programs.
Some of the UConn Foundation’s choices as a private organization have been criticized by students and outside organizations, including their choices in contractors and into what they’ve invested. According to the announcement, the UConn Foundation hopes to grow the endowment fund to $1.5 billion dollars by 2032; as these goals are realized, some people hope the cost to attend UConn decreases. The UConn Foundation exists as a primary element in the university’s ability to maintain stable income whilst maintaining the potential for financial growth, albeit through a private organization according to the foundation’s 2023 report to the state of Connecticut.
The UConn Foundation was founded by former UConn President Homer Babbidge in 1962, and merged with the UConn Alumni Association in 2015.
For more information or to learn about donating, visit foundation.uconn.edu.