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Post by Pakachoag Phreek on Oct 1, 2019 8:22:47 GMT -5
PP, HC has plowed significant sums into facilities, not its endowment, over that period, no? Yes. The annual financial reports include a line titled "construction in progress", with a monetary value. In recent years, this is a significant sum. Perhaps the college engaged in a tradeoff; Either finance most of the construction through bonds and pay 4-5 percent annual interest on the principal, or finance it mostly through gifts. The bet would be that the college couldn't do better than average a 4-5 percent annual growth in the endowment over 15-20 years if it plowed the money into the endowment. That approach short-changes the endowment near term, but it means the cost of construction doesn't carry a 50 percent premium with the interest cost of borrowed money.
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Post by longsuffering on Oct 1, 2019 8:32:27 GMT -5
IDK but Fairfield had the lowest 10 year endowment growth of all colleges in CT. and HC was lower than Fairfield. Perhaps because the Jesuits have named existing buildings for dead Jesuits they don't have as much to offer to potential big donors as other schools do?
Unlikely that's the reason but it's all I can think of now.☺️
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Post by Pakachoag Phreek on Oct 1, 2019 8:33:28 GMT -5
I have been concerned about the slow growth in endowment funds for a number of years. Apparently, it has stalled. Why? 1. Poor bets and bad advice? 2. An investment strategy that is too far behind the curve? 3. Stanley Druckenmiller is not an alumnus? (See: www.nytimes.com/2019/03/22/business/college-investor-who-beats-the-ivys.html4. Too much illiquidity in the investment pool? 5. I don't know.
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Post by longsuffering on Oct 1, 2019 8:42:43 GMT -5
PP, HC has plowed significant sums into facilities, not its endowment, over that period, no? Yes. The annual financial reports include a line titled "construction in progress", with a monetary value. In recent years, this is a significant sum. Perhaps the college engaged in a tradeoff; Either finance most of the construction through bonds and pay 4-5 percent annual interest on the principal, or finance it mostly through gifts. The bet would be that the college couldn't do better than average a 4-5 percent annual growth in the endowment over 15-20 years if it plowed the money into the endowment. That approach short-changes the endowment near term, but it means the cost of construction doesn't carry a 50 percent premium with the interest cost of borrowed money. "Don't use margin" -Warren Buffet
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Post by KY Crusader 75 on Oct 1, 2019 8:58:26 GMT -5
I am struck by the numerical symmetry or the current endowment and the endowment 50 years ago. Then it hovered at about $7.8M and the sustainability of the college was a major concern. A new president and new BoT embarked on a campaign to run balanced annual budgets and vigorous fund raising activities. This is probably an unanswerable question... but are we in a similar time ? In 1969 higher education was in a growth spurt with the baby boomers reaching college age. In 2019 some colleges are closing. In 1969 HC tuition might have been around 10-15% of an average middle class family annual income. In 2019 it is probably around 40-60% of an average middle class family annual income. In 1969 the median household income in the US was $8,389. In my years at HC I seem to recall tuition, room & board being maybe $4,500. So, I'd guess it was around $4,000 in 1969. Even if it was as low as $3,500, that would be 40% of the median HH income. In 2016, the most recent year available, the median income was $59,039. I believe Tuition, Room & Board was North of that amount in 2016. Update from a separate source. In January 2019, with the boom in the US economy, median income has risen to $63,688-. HC's cost with all fees is $69,810.
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Post by longsuffering on Oct 1, 2019 12:21:14 GMT -5
OK Well, now after the heavy construction costs of the LUTH, theJO and the Prior Performing Arts Center ( All are fabulous and needed additions.)and with lower costs involved with the upcoming dorm retro fitting and improvement maybe there can be more attention to growing the endowment. I wonder if a "Billion Or Bust" Endowment Campaign Fund would attract the heavy hitters and great numbers of needed smaller donors. I guess there will always be heavy capital outlays, leaving little room for real endowment growth But a significantly larger endowment could act as a necessary cushion for hiring, increased salaries and scholarship money among other needs at HC. Also, I like the idea of financing endowed chairs in athletics for head coaches and assistants in some sports as a way to take some budgetary pressure off the school. Bad ideas, unrealistic, I know. It always comes down to money. More money does not guarantee a better school but without more money it will be much harder to keep pace with the needs of the school (not referring to those silly public rankings of colleges) let alone build an improved HC for future generations of Crusaders or of whatever name. LoveHC As Ed McMahon used to say to Johnny Carson, "You are correct sir!" Many of the colleges that have closed recently did not have a sufficient endowment and when unavoidable costs began to exceed net tuition and fee income, they entered into a death cycle. Another thought from your post of "more money does not guarantee a better school" is of course more money can't guarantee it, but if more money spent doesn't produce a better school, shame on those running the school.
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Post by longsuffering on Oct 1, 2019 12:23:30 GMT -5
In 1969 higher education was in a growth spurt with the baby boomers reaching college age. In 2019 some colleges are closing. In 1969 HC tuition might have been around 10-15% of an average middle class family annual income. In 2019 it is probably around 40-60% of an average middle class family annual income. In 1969 the median household income in the US was $8,389. In my years at HC I seem to recall tuition, room & board being maybe $4,500. So, I'd guess it was around $4,000 in 1969. Even if it was as low as $3,500, that would be 40% of the median HH income. In 2016, the most recent year available, the median income was $59,039. I believe Tuition, Room & Board was North of that amount in 2016. Update from a separate source. In January 2019, with the boom in the US economy, median income has risen to $63,688-. HC's cost with all fees is $69,810. Can I get half credit for getting the trend right?
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Post by joutsHC77 on Oct 1, 2019 12:29:00 GMT -5
0.3 percent. From $783.2M to $785.9M. The audited financial statement for fiscal year 2019 was published yesterday. Net assets increased to $1,037M from $1,027M, or about one percent. The investment return was cut in half to about $26 million. This did not fully pay for the endowment monies that were released to help pay the cost of operating the college. Which, in part, explains the minuscule growth in endowment value. No HE with these sort of numbers. [ Mediocrity reigns!
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Post by alum on Oct 1, 2019 12:45:50 GMT -5
I think that only $90 million of the campaign goal was focused on growing the endowment. The college has made a decision that improvements to the physical plant are what is needed over what higher endowment income can provide--need blind admissions, meeting 100% of need, and better employee pay to attract and keep good faculty and staff. The tough part of this is trying to figure out, even after the fact, whether decisions were right. There are just too many variables.
Oh, but getting a lousy return on investments is a big problem, too.
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Post by matunuck on Oct 1, 2019 12:55:35 GMT -5
So true on investment returns but, that said, we really did need major facility upgrades and can't fault the admin for pursuing them.
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Post by sader1970 on Oct 1, 2019 13:44:01 GMT -5
For what our chief investment officer was compensated in 2016 (most current IRS990 available), scroll down to page 75 of this link.
I have no idea what CIOs make at other colleges and universities, but ours happens to be the most highly compensated employee.
file:///C:/Users/islan/Documents/HC%202016%20IRS990.pdf
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Post by rgs318 on Oct 1, 2019 13:45:53 GMT -5
It does not seem as though HC is getting a good ROI from that relationship...based on the numbers shown here.
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Post by Pakachoag Phreek on Oct 1, 2019 19:39:12 GMT -5
A short series of yearly financial values related to the endowment, and giving.
Value of construction in process 2015 $13.1 million 2016 $51.6 million 2017 $40.8 million 2018 $14.7 million 2019 $21.2 million
Contributions received (exclusive of contributions to the annual fund) 2015 $81.5 million 2016 $30.9 million 2017 $24.2 million 2018 $26.2 million 2019 $18.2 million (in 2019, $6.1 million was for endowment, $12.5 million for buildings. Don’t know why these don’t add to the sum.)
Contributions receivable (pledged amount but not yet received) 2015 $80.7 million 2016 $80.4 million 2017 $65.0 million 2018 $78.9 million 2019 $74.4 million
Net return on investment, endowment 2015 $12.8 million 2016 -$24.2 million (loss) 2017 $83.3 million 2018 $53.8 million 2019 $26.2 million
Endowment value , as of June 30 2015 $721 million 2016 $681 million 2017 $749 million 2018 $783 million 2019 $786 million
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Post by longsuffering on Oct 1, 2019 20:05:53 GMT -5
0.3 percent. From $783.2M to $785.9M. The audited financial statement for fiscal year 2019 was published yesterday. Net assets increased to $1,037M from $1,027M, or about one percent. The investment return was cut in half to about $26 million. This did not fully pay for the endowment monies that were released to help pay the cost of operating the college. Which, in part, explains the minuscule growth in endowment value. No HE with these sort of numbers. [ Mediocrity reigns! Mediocrity at present in the easiest D-1 hockey league to achieve success in. Some feel we need to join a higher ranked league to attract the players necessary to win. That logic escapes me. I'd love to see HC in a league with BC, BU and Northeastern instead of AIC and RIT, but since we can't afford the HE for now, why not look at the AHA as a gift where we only have to out-recruit and out-coach AIC, Mercyhurst, etc. and we are in the NCAA tournament?
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Post by joutsHC77 on Oct 3, 2019 14:00:58 GMT -5
My comment-mediocrity reigns-was directed at the whole HC scenario manifested by the woeful endowment growth, not necessarily directed at the hockey program.
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Post by longsuffering on Oct 4, 2019 0:52:16 GMT -5
My comment-mediocrity reigns-was directed at the whole HC scenario manifested by the woeful endowment growth, not necessarily directed at the hockey program. I agree. Reading Crossports I am learning that HC has more challenges than I thought. Many of the facts and figures compiled on this board (thanks PP) draw a picture of HC not keeping up with Patriot League peers. The new facilities are awesome but spending on each sport is usually below average for the league. And it is hard to keep raising tuition more than the CPI. I wonder if Baby Boomer alums will be as generous to HC as the Greatest Generation alums who helped grow the endowment a hundred fold?
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Post by hcpride on Oct 4, 2019 6:12:49 GMT -5
My comment-mediocrity reigns-was directed at the whole HC scenario manifested by the woeful endowment growth, not necessarily directed at the hockey program. I agree. Reading Crossports I am learning that HC has more challenges than I thought. Many of the facts and figures compiled on this board (thanks PP) draw a picture of HC not keeping up with Patriot League peers. The new facilities are awesome but spending on each sport is usually below average for the league. And it is hard to keep raising tuition more than the CPI. I wonder if Baby Boomer alums will be as generous to HC as the Greatest Generation alums who helped grow the endowment a hundred fold? That is an interesting final point. I get Villanova mailings and speak to Villanova alums quite frequently. They had a spectacular fundraising capital campaign (here) with a goal of 600 Million by mid 2018 and instead reached that goal in 2016 and wound up raising something like 750 Million. That, of course, was primarily capital expenditures (although a portion did reportedly double Villanova's not-so-large endowment).
The word I've got is that many VU grads have struck it rich in NYC finance and are (and will be) giving back - and this will eventually increase their endowment (now that their building spree is nearing an end) . Is there a possibility that our more recent (last 40 years or so) grads have not been as numerous or as business oriented (at a macro level) so that will hinder future efforts to raise our endowment v some other schools? (I apologize in advance to one or two posters who don't react well to Villanova examples in admissions, sports, or otherwise.)
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Post by lou on Oct 4, 2019 8:03:39 GMT -5
Is there a possibility that our more recent (last 40 years or so) grads have not been as numerous or as business oriented (at a macro level) so that will hinder future efforts to raise our endowment v some other schools? Based on what I have heard, that is not the case
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Post by KY Crusader 75 on Oct 4, 2019 8:42:18 GMT -5
How does Holy Cross compare to Villanova in regard to (1) endowment per student, (2) annual giving per alum?
As far as the generosity of Baby Boomers is concerned: isn't John Luth a Baby Boomer, as one example?
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Post by hcpride on Oct 4, 2019 8:55:52 GMT -5
I never think to divide endowments by the number of current kids at the school (or number of kids 20 years ago for that matter) - I tend to just look at the individual number (and growth over previous year). Ditto for the 'annual giving per alum stat' or 'percent giving per class' as I just look at the big number. The list I look at doesn't include (for whatever reason) the number of undergraduates or graduates in the college's past or present.
As far as Villanova is concerned, the recently concluded campaign was a whopper (750M...with 120 folks giving 1 Million or more) although the endowment (looking at the big number) is currently and relatively low.
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Post by KY Crusader 75 on Oct 4, 2019 10:44:30 GMT -5
Isn’t hc’s Endowment per student more than 3X that nova number?
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Post by HC16 on Oct 4, 2019 10:49:51 GMT -5
Isn’t hc’s Endowment per student more than 3X that nova number? Using Phreek's number for the HC endowment and assuming about 3100 students, you get an endowment/student of $253,516.13 per student. That's 3.84x the figure mm67 cited. Per US News (yes I know...) Villanova's endowment is $711.5 million for about 7,000 undergraduates, resulting in an endowment per student of $101,642.86. HC's endowment per student is 2.49x that figure. If you include the approximately 4,000 grad students Villanova has, that number drops to $64,681.82.
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Post by crossbball13 on Oct 4, 2019 13:14:12 GMT -5
I agree. Reading Crossports I am learning that HC has more challenges than I thought. Many of the facts and figures compiled on this board (thanks PP) draw a picture of HC not keeping up with Patriot League peers. The new facilities are awesome but spending on each sport is usually below average for the league. And it is hard to keep raising tuition more than the CPI. I wonder if Baby Boomer alums will be as generous to HC as the Greatest Generation alums who helped grow the endowment a hundred fold? That is an interesting final point. I get Villanova mailings and speak to Villanova alums quite frequently. They had a spectacular fundraising capital campaign (here) with a goal of 600 Million by mid 2018 and instead reached that goal in 2016 and wound up raising something like 750 Million. That, of course, was primarily capital expenditures (although a portion did reportedly double Villanova's not-so-large endowment).
The word I've got is that many VU grads have struck it rich in NYC finance and are (and will be) giving back - and this will eventually increase their endowment (now that their building spree is nearing an end) . Is there a possibility that our more recent (last 40 years or so) grads have not been as numerous or as business oriented (at a macro level) so that will hinder future efforts to raise our endowment v some other schools? (I apologize in advance to one or two posters who don't react well to Villanova examples in admissions, sports, or otherwise.)
Where did the notion come from the HC grads are generally not in business?
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Post by longsuffering on Oct 4, 2019 15:26:17 GMT -5
Endowment amount per student is a hard fact and when HC climbs the ladder in this category we should be proud. But regarding Athletics, endowment amount per student would only be an exact measure of resource availability per team if we had half the teams of a school with twice the students. The reality is closer to playing schools with twice the students and half the teams. I am NOT advocating dropping any teams, but the challenge is clear and HC makes an admirable effort to support all of it's teams with the relatively small amount of tuitions to spread the majority of the costs over.
Any increase of the endowment or the Crusader Athletics Fund would help immensely, of course. But some of our opponents could have 40-50,000 more living alumni, so the challenge there is clear also.
Now if the Athletic Dept. could get paid for all of the community service HC teams do we'd break the bank. But I'm not advocating any reduction of community service, either. That is something to be proud of.
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Post by hcpride on Oct 4, 2019 16:55:57 GMT -5
That is an interesting final point. I get Villanova mailings and speak to Villanova alums quite frequently. They had a spectacular fundraising capital campaign (here) with a goal of 600 Million by mid 2018 and instead reached that goal in 2016 and wound up raising something like 750 Million. That, of course, was primarily capital expenditures (although a portion did reportedly double Villanova's not-so-large endowment).
The word I've got is that many VU grads have struck it rich in NYC finance and are (and will be) giving back - and this will eventually increase their endowment (now that their building spree is nearing an end) . Is there a possibility that our more recent (last 40 years or so) grads have not been as numerous or as business oriented (at a macro level) so that will hinder future efforts to raise our endowment v some other schools? (I apologize in advance to one or two posters who don't react well to Villanova examples in admissions, sports, or otherwise.)
Where did the notion come from the HC grads are generally not in business? Certainly not from my quote - if you now have that notion: Shouldn't surprise anyone that VU (who has 2800 grad and undergraduate students currently enrolled in their business program alone) business alums would be more numerous (v HC, for example ) in the business world...and that would be an advantage in numbers and wealth-targeting fundraising going forward. (Their success in tapping into this wealth during their 760M [target was 600M] campaign was well documented...the experts were particularly impressed that 120 different alums gave 1M or more). To answer longsuffering . (And that does not suggest numerically smaller HC grads are generally [or not generally] in business.) (I apologize in advance to one or two posters who don't react well to Villanova examples in admissions, sports, or otherwise.)
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