Endowment FAQs
What is an endowment?
Endowments, rather than current-use funds, are often referred to as the “gifts that keep on giving” by providing donors the opportunity to support multiple generations of students and faculty, thereby providing a lasting personal legacy and impact on Stony Brook. When an endowment gift is received, it is placed in a long-term investment fund, and the investment returns generated from the principal are used for university initiatives. The invested principal is preserved for the future.
Are there different types of endowments?
Yes, there are two types — restricted and unrestricted:
Restricted: Most endowments are restricted, which means the donor designates where the money
can be spent. For instance, an endowment may support the research of a faculty member
for a specified amount of time or throughout the duration of their tenure.
Unrestricted: Unrestricted endowment gifts are far less common in higher education, but they are incredibly valuable because unrestricted funds may be spent at the discretion of the university’s leadership so that they can seize new opportunities that may otherwise be out of reach.
How large is the Stony Brook Foundation endowment?
On June 30, 2023, shortly after the announcement of the New York State endowment matching challenge, the market value of Stony Brook’s endowment was $392 million. As of June 30, 2024 the market value had risen to $520 million, and we anticipate the market value to reach more than $800 million by June 30, 2026, and more than $1 billion when all pledges are fully paid.
Why isn’t the Stony Brook Foundation endowment larger?
While we have achieved significant fundraising gains over the past decade, Stony Brook University — founded in 1957— is one of the youngest among the 71 institutions that are members of the Association of American Universities (AAU). Therefore, we’ve had only a fraction of the 100+ years most of our peer institutions have had to raise funds and build an endowment.
If Stony Brook is a public university, why does it need private gifts?
Private gifts allow the university to attract and retain the best and brightest faculty, provide scholarships, build first-class facilities and continue the quality education and research programs that are the hallmark of Stony Brook. New York state provides less than 18 percent of the university’s annual operating budget.
Who decides the university’s fundraising priorities?
The university’s fundraising priorities are established by President Andrea Goldsmith, in consultation with his cabinet, deans and key faculty and staff. Fundraising priorities evolve and are adjusted based upon the university’s needs and donor opportunities.
Learn about endowment match opportunities.
More Information
For more information about endowments, please contact:
Scott Barrett
Interim Vice President Advancement and Interim Executive Director Stony Brook Foundation
(631) 632-9128