Global Financial Crisis Effect Yale University Endowment

Yale University endowment fund

Yale University, which is promoted as the second most effluent varsity, hasn’t been unaffected by the worldwide fiscal crisis. The Yale University endowment has fallen 25%. To explain, it has fallen to $ 17 billion since June. This has resulted in ceiling on pay raise and a finance cut close to $100 million.

Yale University ’s has suffered a loss of about %5.9 billion. Harvard University in Cambridge, Massachusetts said that it had endured a loss of 22% i. e. $8 bln. The College of Virginia, Barnard University of Virginia, Barnard College and Swarthmore College are few other schools to have suffered endowment declines.

Yale University endowment had reached $20billion in 23 years under the chief investment officer, David Swensen.

Yale plans to cut other expenses 10 percent over 2 years. This includes reduction in expenditure on specialists, travel and energy. The university also plans to delay construction of the Yale Biology Building for a year. The same would be applicable to construction of new campus for the business school and expansion of the art museum, which will also be postponed until funding becomes available.

Yale University is also adopting other actions to bridge the gap in the budget. The college will slow increases in incomes by capping annual raises at $1,500 for faculty and staff earning more than $75,000. There will also be fiscal cut in 2010 budgets for non-faculty staff pay, by 5 % thru attrition.