About the Endowment

Endowment refers to assets invested in perpetuity, unlike expendable funds, which are typically used for immediate needs.

Academic endowments came into being during the Middle Ages, when early European universities relied on rental income on land holdings donated by wealthy patrons. Endowments have changed a lot since then, but they remain fundamental to the financial stability of colleges and universities, large and small.

Endowment funds provide a steady predictable source of income over time, on which the university can make commitments and build its programs. Carnegie Mellon’s endowment is not, as many may think, a single pot of money that can be used as the university wishes. In fact, many separate endowed funds comprise the endowment, and donors set stipulations for each fund about how and for what purpose the income may be used.

As Carnegie Mellon’s endowment grows through prudent investment management and gifts, the endowment will help to ensure the strength and stability of the university.