Key Takeaways
- • Hamilton College's endowment stands at approximately $1.5 billion, and the College drew $60 million from it last year, averaging roughly $30,000 per student according to the College's Q&A with its leadership.
- • The endowment provides about one-third of Hamilton's income, funding financial aid, professorships, student research, and general operations.
- • Investment decisions are overseen by the Investment Committee of the Board of Trustees, chaired by Bob Delaney ('79), with day-to-day management run from a New York City office headed by Chief Investment Officer Lauren Jacobson.
- • The College is no longer subject to the federal endowment tax after lawmakers exempted institutions with fewer than 3,000 students, a change the College advocated for through the Small College Coalition.
- • The Hamilton Fund contributes about $7.4 million annually, or 4% of the operating budget, while the College reports losing roughly $300,000 in federal research grants.
Summary
Hamilton College has published a question-and-answer piece explaining how its roughly $1.5 billion endowment is used and managed. The College said it drew $60 million from the endowment last year, which it calculates at about $30,000 per student. Officials argued the College does not draw more because the endowment must preserve purchasing power over a horizon of hundreds of years. The stated primary objective is a total return that provides annual income while preserving the real value of the endowment in perpetuity.
According to the College, endowment funds support financial aid, professorships, student research and internships, physical plant, guest lectures, the Outdoor Leadership Center, science equipment, and Levitt Center programming, as well as general operations. Officials said the endowment provides roughly one-third of income and linked those resources to outcomes such as smaller classes and higher graduation rates. The Hamilton Fund, made up of unrestricted annual gifts, accounts for about 4% of the operating budget, or $7.4 million per year, and covers items such as heating costs, lab equipment, and athletics.
The College's investment office operates from New York City under Chief Investment Officer Lauren Jacobson, who works primarily with the Investment Committee of the Board of Trustees, chaired by Bob Delaney ('79). The committee sources and vets managers across domestic and international equity, fixed income, real estate, commodities, hedge funds, private equity, and market indices, and allocates capital among them. The College said it considers ESG factors when interviewing managers but described its investment committee's role as fiduciary.
On policy, the College said it has been required to pay an endowment tax since 2017. It worked with other colleges to seek an exemption for institutions with fewer than 3,000 students, and lawmakers approved it, so the tax no longer applies. The College also lost about $300,000 in federal research grants, which donors partly bridged. Officials named the challenge ahead as building the endowment to fund future initiatives while remaining need-blind in admissions, noting that financial aid need is growing faster than tuition can rise.
According to the College, endowment funds support financial aid, professorships, student research and internships, physical plant, guest lectures, the Outdoor Leadership Center, science equipment, and Levitt Center programming, as well as general operations. Officials said the endowment provides roughly one-third of income and linked those resources to outcomes such as smaller classes and higher graduation rates. The Hamilton Fund, made up of unrestricted annual gifts, accounts for about 4% of the operating budget, or $7.4 million per year, and covers items such as heating costs, lab equipment, and athletics.
The College's investment office operates from New York City under Chief Investment Officer Lauren Jacobson, who works primarily with the Investment Committee of the Board of Trustees, chaired by Bob Delaney ('79). The committee sources and vets managers across domestic and international equity, fixed income, real estate, commodities, hedge funds, private equity, and market indices, and allocates capital among them. The College said it considers ESG factors when interviewing managers but described its investment committee's role as fiduciary.
On policy, the College said it has been required to pay an endowment tax since 2017. It worked with other colleges to seek an exemption for institutions with fewer than 3,000 students, and lawmakers approved it, so the tax no longer applies. The College also lost about $300,000 in federal research grants, which donors partly bridged. Officials named the challenge ahead as building the endowment to fund future initiatives while remaining need-blind in admissions, noting that financial aid need is growing faster than tuition can rise.
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