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We Fall Ever More Behind
Dartmouth’s endowment grows more or less quickly depending on three factors: the returns on the funds invested by the endowment’s managers; how much money the College draws out of the endowment to fund its ongoing operations; how strong giving is to the College.
As we have seen in past posts, the endowment grew faster than all of our Ivy peers in the 1990’s, and slower than all of them in this century. As well, we have looked at Jim Kim’s lackluster record as a fundraiser.
The College will soon be announcing the investment returns on the endowment for fiscal 2012. At that time we’ll look at how well we did this year compared to the other Ivies.
However, in preparation for that analysis, let’s look at the figures for 2011 — when a large part of the endowment was being managed by Trustees’ firms. Once again, our investment returns were the worst in the Ivy League:
Endowment returns, which are publicly announced, are measured by the increase in value of the College’s holdings, minus the cost of administering the endowment. Rumor among insiders has the Trustees applying all possible expenses to the endowment as a way of getting costs off of the operating books. The rules of accounting allow a certain leeway in areas like this, and our clever administrators are doing whatever they can to make things look good. However the final outcome does not make us appear very strong as compared to the other members of the Ancient Eight.
Despite offloading these items, the College still draws off the endowment at a level that surpasses all of the other Ivy schools except for Yale:
As you will have discerned for yourself, when Dartmouth draws more off the endowment that our Ivy sisters, and when we earn less than their endowments do, the results are clear: declining financial power and increasing institutional weakness.
Addendum: To calculate these schools’ endowment draws, I have used the figures in their 2011 accounts: the amount drawn in 2011 from their endowments, and the endowments as they stood at the end of fiscal 2011.
October 18, 2009
When Love Beckoned in 52nd Street
We were at San Francisco’s BIX last evening, enjoying prosecco, cheese, and a bit of music. A full year of inhabitation in Northern California has unraveled to me no decent venue for proper lounging, but…
October 9, 2009
D Afraid of a Little Competish
So our colleague and Dartblog writer Joe Asch informed me that the D has rejected our cunning advertising campaign. Uh-oh. The Dartmouth is widely known as a breeding ground for instant New York Times successes,…
September 4, 2009
How Regents Should Reign
As Dartmouth alumni proceed through the legal hoops necessary to defuse a Board-packing plan—which put in unhappy desuetude an historic 1891 Agreement between alumni and the College guaranteeing a half-democratically-elected Board of Trustees—it strikes one…
August 29, 2009
Election Reform Study Committee
If you are an alum of the College on the Hill, you may have received a number of e-mails of late beseeching your input for a new arm of the College’s Alumni Control Apparatus called…
August 23, 2009
Fare Thee Well, Tom Crady
And now Dean Tom Crady has precipitously announced his departure from the College after only 20 months on the job. How to read this? By way of background, prior to coming to Dartmouth, Crady had…
May 31, 2009
Kangaroo Court, Indeed
In an interview with The Dartmouth, alumni-elected trustee T.J. Rodgers ‘70 explained his reasons for declining to participate in future evaluations of trustees up for “re-election,” namely the “kangaroo court” nature of such discussion in…