MIT Discloses 2015 Endowment Value
The Massachusetts Institute of Technology (MIT) has a substantial endowment, a financial asset primarily built on generous gifts from alumni and friends over the years. This endowment serves as a vital source of income for the Institute, with the principal invested in a diversified portfolio and the returns used to support MIT's core mission in perpetuity[1].
A significant portion of the endowment income is dedicated to scholarships and need-based financial aid, enabling students from diverse backgrounds to access MIT’s world-class education[1]. This funding supports grants, fellowships, and other forms of student support, ensuring that an MIT education remains accessible to all qualified candidates, regardless of financial resources, thanks to the Institute's need-blind undergraduate admissions policy[1].
Endowment funds also provide crucial backing for MIT’s research endeavors, supporting faculty, laboratories, and innovative projects that advance knowledge and technological progress[1]. The endowment helps sustain teaching, new academic initiatives, and the ongoing development of the curriculum, ensuring MIT remains at the cutting edge of science, engineering, and related fields[1].
The endowment's role extends beyond campus, supporting local communities and broader societal contributions through MIT’s educational and research outputs[1]. The bulk of the endowment income is used to weather economic fluctuations and to budget for major capital projects and unforeseen needs, ensuring the Institute’s continued excellence and adaptability[1].
However, recent federal tax changes have raised concerns about the potential impact on MIT's ability to maintain current levels of financial aid, research investment, and academic support[1][3]. The increased levy on returns from the largest university endowments, including MIT’s, could constrain the funds available for these vital activities, potentially forcing difficult budgetary choices[1].
In the fiscal year ending June 30, 2015, MIT generated an investment return of 13.2% for its endowment funds, with the funds totaling $13.5 billion, excluding pledges[1]. As of the same date, MITIMCo, the unit of MIT responsible for the Institute's activities, had approximately $21.3 billion of assets under management[1]. In 2014-15, the average financial aid award for need-based-aid recipients from all sources at MIT was $43,298[1]. Thirty-three percent of MIT undergraduate students received scholarship funding sufficient to cover the total cost of tuition[1]. Sixty percent of MIT undergraduates received need-based financial aid[1].
[1] Source: The Massachusetts Institute of Technology's Report of the Treasurer for fiscal year 2015 [2] Source: NACUBO-Commonfund Study of Endowments, 2015 [3] Source: The Boston Globe, "MIT's endowment faces new tax hit under GOP plan," 2017.
- MIT's world-class education is made accessible to students from diverse backgrounds due to the endowment's funding of scholarships and financial aid.
- The endowment supports not only students but also faculty, laboratories, and innovative projects, thereby advancing knowledge and technological progress.
- A portion of the endowment income is dedicated to research, teaching, and the development of the curriculum, ensuring MIT stays at the forefront of science, engineering, and related fields.
- Beyond the campus, the endowment supports local communities and broader societal contributions through MIT's educational and research outputs.
- The endowment serves as a financial cushion, helping the Institute weather economic fluctuations and budget for major capital projects and unforeseen needs.
- However, recent federal tax changes have raised concerns about the potential impact on MIT's ability to maintain current levels of financial aid, research investment, and academic support.
- In the fiscal year 2015, MIT generated a 13.2% return on its endowment funds, totaling $13.5 billion, and MITIMCo managed approximately $21.3 billion of assets.
- In 2014-15, the average financial aid award for need-based aid recipients at MIT was $43,298, with 60% of undergraduates receiving need-based financial aid, and 33% receiving scholarship funding sufficient to cover tuition costs.
