GOAL: $45 MILLION

American University’s long-term financial health depends on a strong endowment.  Today, the university's endowment stands at approximately $340 million. In 1994, that figure was $30 million. 

When a donor makes a gift to the endowment, the principal is invested, and the investment begins generating interest income. Each year AU re-invests a portion of that income to support the growth of principal and to provide protection against inflation. The remaining portion goes to the university’s operating budget, helping support bright students, outstanding faculty, and first-rate resources.  One problem with a small endowment is that it requires the university to depend on tuition for revenue. Tuition currently provides between 85 and 90 percent of AU’s operating budget.

AnewAU aims to raise $45 million for the university’s endowment. While this goal may seem ambitious, achieving it will improve AU’s ability to recruit world-class faculty, attract promising students, and develop academic programs that respond to the most pressing challenges of our time.