What is the endowment?
An endowment is assets invested over the long-term to provide permanent support for the university. This is in contrast to current use funds, which are used for immediate needs.
What percentage of LMU's expenses are funded through the endowment?
LMU must fund annually its operating expenses from grants, student tuition, and annual gifts from alumni, parents, friends and other sources.
Why does LMU need to increase its endowment?
The endowment is our most dependable source of income. Increasing the endowment will make us less dependent on sources of income that are outside our control and allows us to better plan for the future. Our goal is to increase the endowment so that we may use more endowment income toward expenses.
Can LMU use more of the the university's endowment to cover expenses?
Some mistakenly think of an endowment as an interest-earning account that can be used to cover expenses as needed. It’s actually more like a trust fund that must last in perpetuity--without its value eroding over time. Therefore, an endowment is invested for the long-term, and its purchasing power must be maintained perpetually.
How much of LMU's expenses are covered by tuition?
Tuition covers only about 77 percent of the real costs of a LMU undergraduate education. In other words, those paying "full price" are not actually paying the full cost of four years at LMU. A LMU education is subsidized through the generosity of alumni, parents, friends and other donors. Furthermore, most of our students do not pay "full price"--more than 71 percent of undergraduates receive some type of financial aid. We strive to keep tuition down as much as we can and are committed to providing an educational experience that provides life-long value. We are dedicated to increasing need-based financial aid so that more students may enjoy a LMU education.