Louisiana's Tulane University hits $1B in endowment funding

New Orleans CityBusiness, Jul 26, 2007

Tulane University's endowment has topped $1 billion for the first time in the school's 173-year history.

Only 62 other American colleges have reached the $1-billion mark, and school officials say it couldn't come at a better time as the school continues to recover from $600 million in damages as a result of Hurricane Katrina.

"We reached this historic milestone because of our success in fund raising and in the management of the endowment," said President Scott Cowen. "The income from this endowment is significantly strengthening out academic core and expediting our financial recovery."

An endowment is an investment fund from which a university derives interest. Reaching the $1-billion mark was one goal of "Promise and Distinction: The Campaign for Tulane University," which was launched in March 2005 just five months before Hurricane Katrina pummeled New Orleans.

The overall campaign goal is to raise $700 million by 2008. So far Tulane has raised more than $652 million toward the goal.

Tulane was able to reach the $1-billion goal one year ahead of schedule, raising $85 million this year, $10 million above its goal, despite a smaller development staff.

Most of the endowment is restricted. Among other purposes, income from the endowment will be used to attract and retain world- class faculty, fund pioneering research, support new endowed chairs and professorships, recruit outstanding students through scholarships, fellowships, research, travel and internship opportunities, enhance the Howard-Tilton Memorial Library's collections, support women's education, support partnerships for rebuilding New Orleans, fund physical improvements to the university and support the Tulane Athletics Endowment to ensure the long-term financial viability of Tulane's Division 1-A athletics programs.

"The size of the endowment is a means to an end; that end is to continue to build a truly preeminent and distinctive research university. Despite the ongoing challenges of overcoming Katrina, Tulane is well on its way in achieving that goal," Cowen said.