The University’s net assets increased by 8.3% to $8.3 billion in its 2024 fiscal year, despite an operating loss of 3% and a nearly $41.9 million deficit, the University announced Thursday.
Fundraising cleared $500 million for the first time in the University’s history. Brown’s fundraising success stands out as an anomaly: Fundraising numbers dropped significantly at peer institutions like Harvard whose donors severed ties over its response to allegations of antisemitism on campus.
Brown also saw an 11.3% return on its endowment in the 2024 fiscal year, outperforming every Ivy League school except for Columbia, which saw returns of 11.5%.
In a letter to the Brown community sharing the report, President Christina Paxson P’19 P’MD’20 highlighted the University’s structural deficit, which is projected to “grow significantly” without intervention.
“This comes as Brown continues its transition from an undergraduate tuition-dependent financial model more reminiscent of colleges to that of a leading research university,” Paxson wrote, adding that the University will continue to “make the strategic investments required to elevate Brown’s impact as a leading research institution.”
Brown recorded a 4% jump in research expenditures to $293.1 million, along with new award dollars totaling $295.4 million.
Nearly $41 million was raised for undergraduate financial aid with $29.9 million allotted for international financial aid. This influx comes as Brown transitions to need-blind international student admission for the class of 2029. The University also funded 139 endowed professorships.
Changes to Brown’s financial strategy include an 11.1% increase in graduate student support, which reached $106.7 million following a renegotiated contract with the Graduate Labor Organization.
Brown also took on a new liability, worth $49.9 million, in “funds held for others,” which includes partial management of Brown University Health’s investment portfolio following expanded affiliation agreements between Brown and Rhode Island’s largest hospital system.
Capital projects cost the University $185.5 million, including funding for the Lindemann Performing Arts Center, the Danoff Laboratories and the renovation of Andrews House.
During the past year, the University paid down $118.5 million in debt. To prevent incurring additional debt, which usually funds residence halls and renovations to academic buildings, the University plans to “grow its operating margin,” according to the report.
The University’s investments increased by 8% to over $7 billion. Endowment returns fell short of index funds, including the S&P 500. But Brown landed itself in the top 5% of its peers, according to the report. The endowment’s returns contributed $281 million to the University’s operating budget.
Net tuition and fees also brought in $412 million, accounting for 30% of the University’s operating budget. This succeeds a 4.75% increase in undergraduate tuition.
Anisha Kumar is a section editor covering University Hall. She is a junior from Menlo Park, California concentrating in English and Political Science who loves speed-crosswording and rewatching sitcoms.
