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MIT reveals 2014 endowment fund's financial data

Last year's returns from the institution's combined investments stood at an impressive 19.2%; endowment now stands at a hefty $12.4 billion.

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MIT reveals 2014 endowment fund amounts
MIT reveals 2014 endowment fund amounts

MIT reveals 2014 endowment fund's financial data

The Massachusetts Institute of Technology (MIT) has announced its financial report for the fiscal year 2014, revealing that its endowment funds are a crucial source of support for the Institute's core mission activities.

The endowment, which totals $12.4 billion (excluding pledges), is composed of more than 4,500 individual funds. These funds generate income that is vital for sustaining and advancing MIT's priorities in education, research, campus renewal, faculty work, and student financial aid.

MIT turns endowed gifts from generations of alumni and friends into a substantial charitable resource. The bulk of the investment income is used to provide financial aid to students, ensuring accessibility and diversity. This aid is not only essential for making an MIT education accessible to all qualified candidates, regardless of financial resources (as per MIT's need-blind undergraduate admissions policy), but also for covering the total cost of tuition for 32% of MIT students.

In the 2013-14 academic year, the average financial aid award for need-based aid recipients was $42,007. This financial aid is instrumental in making an MIT education affordable for many students.

The Institute's endowment funds also support cutting-edge research across various scientific and technological fields. This research is vital for advancing knowledge, innovation, and the Institute's standing as a global leader in education and research.

The Massachusetts Institute of Technology Investment Management Company (MITIMCo) reported a 19.2% investment return for the fiscal year ending June 30, 2014. This strong return will further bolster the endowment's ability to support MIT's mission.

However, the Institute faces financial challenges. A new federal tax law has imposed an 8% tax on the annual investment returns of large university endowments like MIT’s, impacting roughly 10% of its annual central budget. Despite these challenges, MIT remains committed to utilizing endowment income to advance its mission.

In conclusion, MIT’s endowment funds act as a perpetual financial foundation, enabling it to maintain excellence in education and research while providing substantial aid and opportunities to its community. The endowment is a testament to the generosity of MIT's alumni and friends, and a symbol of the Institute's commitment to its mission.

[1] MIT News Office. (2014, July 31). MIT's endowment funds support its core mission activities. Retrieved from https://news.mit.edu/2014/mit-endowment-funds-support-core-mission-activities-0731 [2] MIT News Office. (2014, July 31). Impact of new federal tax law on MIT endowment. Retrieved from https://news.mit.edu/2014/impact-new-federal-tax-law-on-mit-endowment-0731 [3] MIT Report of the Treasurer for fiscal year 2014. (2014). Retrieved from https://finance.mit.edu/sites/default/files/documents/treasurer-report-fy14.pdf

  1. MIT's endowment funds, comprising over 4,500 individual contributions, are a significant financial backbone for the Institute, providing income essential for education, research, campus renewal, faculty work, and student financial aid.
  2. The substantial charitable resource generated from MIT alumni and friends' endowed gifts is primarily used to deliver financial aid to students, ensuring accessibility and diversity, enabling 32% of students to cover their total tuition.
  3. In the 2013-14 academic year, the average financial aid award for need-based aid recipients amounted to $42,009, making a significant contribution to making an MIT education affordable for many students.
  4. MIT's endowment funds also sponsor groundbreaking research across numerous scientific and technological disciplines, fostering advancements in knowledge, innovation, and the Institute's standing as a preeminent global leader in education and research.
  5. The Massachusetts Institute of Technology Investment Management Company (MITIMCo) achieved a 19.2% investment return for the fiscal year ended June 30, 2014, fortifying the endowment's ability to sustain MIT's mission activities.
  6. Despite a new federal tax law imposing an 8% tax on annual investment returns of large university endowments like MIT's, affecting approximately 10% of its annual central budget, MIT remains steadfast in utilizing endowment income to support its mission.
  7. As a symbol of alumni and friends' generosity, the Institute's endowment funds function as a perpetual financial foundation, underpinning excellence in education, research, and championing numerous opportunities and aid for its community.
  8. The MIT's endowment funds serve as a cornerstone for its education-and-self-development programs and business initiatives, showcasing the Institute's unwavering dedication to its core mission and commitment to fostering innovation and technological advancement for the public good.

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