New gifts to college endowments fell to $14 billion, a 9.2 percent drop from the prior year, according to the February 2026 release of the NACUBO-Commonfund Study of Endowments.

The study, covering 657 U.S. colleges, universities, and affiliated institutions, documents the decline for fiscal year 2025 and highlights the scale of fundraising challenges facing higher education.

The data were released in February 2026 and reflect endowment gift activity for fiscal year 2025, the period ending June 30, 2025. Total new gifts to endowments amounted to $14 billion, down from $15.4 billion recorded for fiscal year 2024 [1].

The National Association of College and University Business Officers (NACUBO) partnered with the Commonfund Institute to compile the findings. The survey included responses from 657 U.S. colleges, universities, and affiliated institutions, among them Harvard University and a broad cross-section of public and private schools [1][2].

Study Findings and Methodology

The NACUBO-Commonfund Study of Endowments collected financial data through a standardized questionnaire sent to participating institutions. Responses were aggregated to produce national benchmarks for endowment performance, fundraising, and investment activities [2].

The National Association of College and University Business Officers (NACUBO) partnered with the Commonfund Institute to compile the findings.

The study reports a 9.2 percent reduction in new endowment gifts for FY 2025, representing a $1.4 billion shortfall relative to FY 2024. The decline is measured across all institution types, with both large research universities and smaller liberal-arts colleges reporting lower gift inflows [1].

While the report does not attribute the decrease to specific causes, it notes that the broader economic environment and donor behavior trends are factors commonly examined by nonprofit investment committees [2][3]. The study also documents that institutions continued to rely on endowment earnings for operating support, underscoring the importance of stable gift inflows [3].

Implications for Higher-Education Stakeholders

The reduction in endowment gifts directly influences the financial resources available for academic programs, scholarships, faculty positions, and capital projects. Institutions that depend heavily on endowment earnings may experience tighter budgets if new gifts do not offset market performance [3].

Fundraising offices are expected to intensify efforts to cultivate donor relationships and engage alumni, as indicated by parallel findings from the 2026 Philanthropy Pulse survey, which reported heightened focus on frontline activity and major-gift performance in 2025 [4].

Nonprofit investment committees, which oversee endowment assets, are advised to consider the volatility of gift inflows when planning asset allocations and spending policies. The study’s data serve as a benchmark for assessing institutional risk and for adjusting fundraising strategies to maintain fiscal stability [2][3].

Impact on Students, Educators, and Institutions Students may encounter changes in the availability of merit-based scholarships and financial-aid packages that are traditionally funded by endowment resources.

Impact on Students, Educators, and Institutions

Students may encounter changes in the availability of merit-based scholarships and financial-aid packages that are traditionally funded by endowment resources. Educators could see adjustments in research funding and faculty-development grants tied to endowment earnings [3].

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Institutions are likely to prioritize donor stewardship, increase transparency in endowment reporting, and explore diversified revenue streams to mitigate the effect of reduced gift inflows. The immediate effect is a heightened focus on fundraising performance metrics and alumni engagement initiatives [4].

Key Facts

What: New gifts to U.S. college endowments fell 9.2 percent to $14 billion in FY 2025.

When: Fiscal year 2025; results released February 2026.

college endowments fell 9.2 percent to $14 billion in FY 2025.

Impact: Reduced endowment inflows affect funding for scholarships, programs, and operations, prompting institutions to intensify fundraising and donor engagement.