Revenue

Paying for Operations ($205 million) 2009-10

Revenue

We’ve grown more reliant on endowment over the past decade, which began with 29% of operating revenue coming from endowment and ended with 39%. Over the same time, revenues from student fees dropped from 55% to 49%. As a result of the financial crisis, the endowment is not able to support our operations to the extent that it has in recent years. It’s increasingly important that we get our rate of spending from endowment back as soon as possible to a sustainable level, which is generally considered to be around 4.5 to 5% of its beginning-of-year value. The longer we spend at a higher rate, the more we’re jeopardizing future students, faculty, and staff. For 2009-10, the Trustees approved a higher than normal asset use rate of 5.6%, which reflects both a substantial reduction in asset-use and a commitment to maintaining the quality of a Williams education.

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