Key Takeaways
- • Grinnell College's endowment grew by approximately $483 million to $3.3 billion in fiscal year 2026, driven by a 20.7 percent investment return and $26.7 million in gifts, according to The Scarlet & Black.
- • The 20.7 percent return exceeded the preliminary 15.5 percent median for U.S. college and university endowments and was the College's strongest performance since 2021, per chief investment officer Jainen Thayer.
- • Over the past decade Grinnell averaged an 11.3 percent annual return versus a 9.9 percent peer median; returns were 11.7 percent in 2025 and 10.7 percent in 2024.
- • Grinnell distributed $119.5 million in FY2026, supporting 62 percent of its operating budget, with financial aid equal to 74 percent of the annual payout versus a 47 percent national average.
- • The College's spending formula blends 70 percent prior-year withdrawal (grown at a fixed rate) with 30 percent three-year average market value, so FY2026 gains will influence budgets gradually rather than being immediately spendable.
Summary
Grinnell College's endowment grew by approximately $483 million to reach $3.3 billion during fiscal year 2026, following a 20.7 percent investment return, according to The Scarlet & Black. The increase reflects both investment gains and $26.7 million in gifts. The return exceeded the preliminary 15.5 percent median for U.S. college and university endowments and marked the College's strongest performance since 2021, according to Jainen Thayer, the College's chief investment officer. Over the past decade, the endowment generated an average annual return of 11.3 percent, compared with a 9.9 percent peer median. Returns were 11.7 percent in 2025 and 10.7 percent in 2024.
Thayer said results were positive across the portfolio and no single asset class drove returns. Grinnell does not publicly disclose its individual investments or their distribution, citing confidentiality agreements. Thayer said the College has changed how it manages public equity holdings, its target allocations across asset types, and the investment managers it uses, though he did not identify those managers. He also credited favorable markets, noting that a passive portfolio of 70 percent global stocks and 30 percent bonds returned 17.8 percent last year, roughly three points below Grinnell's result, which he attributed to allocation and manager decisions.
Despite the higher asset value, College officials said students should not expect an immediate increase in spending. President Anne Harris said, "Endowments are not bank accounts." Under the College's withdrawal formula, 70 percent of the annual payout is the prior year's withdrawal increased by a fixed growth rate, and 30 percent is based on the endowment's average market value over the previous three years. Thayer said this produces relatively stable spending across volatile markets, so this year's gains will support the College gradually over several years. During FY2026 Grinnell distributed $119.5 million, supporting 62 percent of the operating budget along with reserves and capital projects. Financial aid accounted for the equivalent of 74 percent of the annual payout, compared with a national average of 47 percent.
Harris said the College can also fund major construction through extraordinary withdrawals, such as the renovation of the Humanities and Social Studies Center and construction of Renfrow Hall, but that such withdrawals carry a long-term cost because the money no longer generates returns. She said FY2026 returns have not yet produced new construction plans or spending increases, and identified expanding experiential learning, including research, internships, off-campus study and civic engagement, as priorities. The College plans to publicly launch its fundraising campaign, "The Work Worth Doing," in 2027, with goals of expanding college access, supporting the liberal arts, creating transformative experiences and building spaces for belonging and community, according to a February Board of Trustees summary. Harris said the College does not intend to grow substantially in enrollment.
Thayer said results were positive across the portfolio and no single asset class drove returns. Grinnell does not publicly disclose its individual investments or their distribution, citing confidentiality agreements. Thayer said the College has changed how it manages public equity holdings, its target allocations across asset types, and the investment managers it uses, though he did not identify those managers. He also credited favorable markets, noting that a passive portfolio of 70 percent global stocks and 30 percent bonds returned 17.8 percent last year, roughly three points below Grinnell's result, which he attributed to allocation and manager decisions.
Despite the higher asset value, College officials said students should not expect an immediate increase in spending. President Anne Harris said, "Endowments are not bank accounts." Under the College's withdrawal formula, 70 percent of the annual payout is the prior year's withdrawal increased by a fixed growth rate, and 30 percent is based on the endowment's average market value over the previous three years. Thayer said this produces relatively stable spending across volatile markets, so this year's gains will support the College gradually over several years. During FY2026 Grinnell distributed $119.5 million, supporting 62 percent of the operating budget along with reserves and capital projects. Financial aid accounted for the equivalent of 74 percent of the annual payout, compared with a national average of 47 percent.
Harris said the College can also fund major construction through extraordinary withdrawals, such as the renovation of the Humanities and Social Studies Center and construction of Renfrow Hall, but that such withdrawals carry a long-term cost because the money no longer generates returns. She said FY2026 returns have not yet produced new construction plans or spending increases, and identified expanding experiential learning, including research, internships, off-campus study and civic engagement, as priorities. The College plans to publicly launch its fundraising campaign, "The Work Worth Doing," in 2027, with goals of expanding college access, supporting the liberal arts, creating transformative experiences and building spaces for belonging and community, according to a February Board of Trustees summary. Harris said the College does not intend to grow substantially in enrollment.
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