By SUSAN JONES
The Board of Trustees investment committee on June 10 voted to keep the percentage of money Pitt takes from its endowment funds for the 2022-23 operating budget the same as the past two years.
The value of the endowment has grown dramatically in the past two years. The resulting distributions from the consolidated investment fund and the quasi-endowment fund also will increase.
The distribution from the quasi-endowment fund, which includes non-endowed gifts that are completely free of donor restrictions on how and when the funds are spent, is based on 4.75 percent of the three-year average fair market value of the assets. This results in an income distribution amount of $6.14 per share — a 12.1 percent increase over the $5.48 per share in effect for fiscal year 2021-22.
Similarly, the distribution from the consolidated investment fund is based on 4.25 percent of the three-year average fair market value of the assets or $5.49 per share. This is a 12.1 percent increase above the income distribution amount of $4.90 per share for FY 2022.
The final amount that will be put in the operating budget will not be clear until the University announces its budget, which usually happens in early July. Pitt is still waiting to hear how much money it will get from the state for fiscal year 2022-23. Lawmakers are required to pass the state budget by the end of June, although they haven’t always met that deadline.
Pitt’s endowment gained more than $1.4 billion during 2020-21, ending at $5.68 billion, according to the University’s annual IRS 990 form. The quasi-endowment makes up 51.5 percent of the total. The office of Pitt’s chief financial officer said that market gains were the primary reason for the increase in the value of the endowment.
Susan Jones is editor of the University Times. Reach her at email@example.com or 724-244-4042.
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