For over 40 years, NACUBO has conducted a study on institutional endowments designed to answer key questions in how these financial tools are used. Over the years, this has become the largest study of its kind, offering a comprehensive set of data for policy-makers, parents, students, and the broader community in how their institutions are using endowed funds.
This week, NACUBO’s Director of Research and Policy Analysis, Ken Redd, joins us to report findings in the 2017 report. If you remember Ken’s report on this show from last year at about this time, things have changed — and not always for the better. In the short term, the strong market has impacted short term performance is a positive way. However, analysts watching the 10-year trends are not seeing such rosy news. Plus, the changes coming next year with the implementation of the nation’s Tax Cuts and Jobs Act of 2017, there are significant concerns that donors with find a disincentive to donate at typical rates — and there are discouraging forecasts to backup those concerns. This week on NACUBO In Brief, Ken and Megan break down the current state of endowments with key areas of focus for finance leaders in the coming year.