University of Pennsylvania’s endowment increases by 12.2%, reaching a total of .8 billion.
The University of Pennsylvania’s endowment reached an impressive .8 billion for fiscal year 2025, marking a significant increase of 12.2% compared to the previous year. This financial boon supports numerous student financial aid programs and various university initiatives, consisting of over 8,000 individual funds, with 90% of these funds being donor-restricted.
In light of upcoming fiscal changes, it was noted that endowment earnings for fiscal year 2027 will be subject to a new 4% excise tax, a substantial increase from the 1.4% tax rate that the university has been paying since 2022. This tax applies specifically to net investment income, raising concerns about the potential implications for the university’s financial landscape. Trevor Lewis, the Vice President for Budget Planning and Analysis, addressed the board of trustees’ business and finance committee, emphasizing that this change effectively triples the university’s tax rate and represents a significant adjustment for ongoing budgetary planning. Presently, approximately 18% of the university’s operating budget is financed through distributions from the endowment, a percentage that has seen growth over the past decade.
Moreover, the finance committee meeting was among several recent gatherings held by trustees as they geared up for Penn’s homecoming weekend.
In separate board-related news, James G. Dinan, the founder of York Capital Management, has been appointed to a three-year term as chair of the Wharton Board of Advisors, effective July 1. He will succeed billionaire donor Marc Rowan, whose term is concluding. Dinan has been a member of the Wharton board since 2013 and is also a current member of the board of trustees.
Rowan’s leadership tenure saw scrutiny from faculty and staff, particularly regarding his actions in prominent university matters and his recent support for Donald Trump’s university compact, an initiative that has stirred considerable debate. Despite these controversies, Rowan has continued his philanthropic support for Wharton, including a notable million commitment earlier this year.
Additionally, the board has approved a significant 5 million renovation of Class of 1920s Commons Dining facility and accepted a naming gift for a new student performing arts center from outgoing board vice chair Julie Beren Platt, her husband Marc, and both being alumni of the class of 1979. This performing arts center is expected to open in 2027, located at 33rd Street and Woodland Walk. Lastly, the board passed changes to its long-standing statutes aimed at strengthening board structure and clarifying existing ambiguities, which had not seen updates in over a decade.
Media News Source
