Vassar’s endowment was established by its founder, Matthew Vassar, in 1868. The endowment has grown over the decades thanks to the generosity of donors and from the investments’ return over time. It enables the College to serve and sustain generations of learners and educators year after year.

Vassar’s endowment is made up of more than 1,200 individual endowment gifts. These gifts are pooled together and invested which allows the endowment to grow and provide ongoing support for the College’s mission. Donors designate how their gifts may be used, including for necessities like student financial aid and support, faculty recruitment and retention, critical programs, and College operations. Spending from the endowment contributes almost 30% of the College’s annual operating budget, making it a crucial source of support.

The Board of Trustees has a fiduciary responsibility to ensure the endowment is managed to support both current and future needs of the College. The Board oversees the investments of the endowment assets and the annual spending from the endowment. Gifts to the endowment must be invested in a way that generates income to support the College in perpetuity.

How the endowment is spent

The Board of Trustees approves the College’s endowment spending rule, which is a formula-based approach to calculate the amount drawn from the endowment each year. The spending rule is designed to provide stable income to support Vassar students, faculty, and operations today, while growing the endowment to support higher operating costs in the future.

The Board delegates oversight of the endowment investments to the Investments Committee. The Investments Committee is responsible for strategic oversight of the endowment. They select the endowment’s Investment Manager, oversee their performance, and set the strategic direction for asset allocation. The committee works closely with the College’s financial team to ensure that the endowment is managed in line with Vassar's financial goals and policies.

The Investments Committee hired Pathstone, previously known as Hall Capital Partners, to manage the day-to-day operations of the endowment. Pathstone is an experienced investment firm that focuses on building a diversified portfolio to support regular annual spending and growth over time with prudent levels of risk. Pathstone selects funds in which to invest in accordance with the asset allocation approved by the Investment Committee. When selecting funds Pathstone’s extensive diligence incorporates a thorough assessment of potential risks and returns. Managers of funds have discretion to select the securities in which they invest, and typically Vassar’s money is pooled with other investors in the fund.

The Vassar College endowment is a cornerstone of the College’s long-term financial stability. Through the generosity of our donors and the careful management of our endowment, we will provide ongoing support for academic excellence, financial aid, faculty development, and campus initiatives for generations to come.

*including venture capital