Why Does Stanford Need Money?
Seven Reasons to Support Stanford
- Tuition covers only about two-thirds of the real cost of undergraduate education.
Even those who pay "full price" have benefited from the generosity of alumni, parents, and friends.
- Nearly half of all Stanford undergraduates depend on need-based aid from the university.
Stanford is one of the few universities that meet 100 percent of every family's demonstrated need.
- Stanford's endowment covers only about 23 percent of the university's budget.
Stanford's endowment is not small ($22.4 billion as of August 31, 2016) but is best measured against Stanford's mission. The university must fund more than two-thirds of its operating expenses from other sources. The amount of endowment spent each year (about 5.5 percent) is carefully calibrated to enable these funds to support their purposes in perpetuity.
- Most gifts are restricted.
The majority of gifts to Stanford, and more than 75 percent of endowment funds, are directed toward particular schools, departments, or programs. Annual, expendable gifts provide vital flexibility.
- Federal funding has declined.
Federal support for university research is significant, but it's been declining for years in real dollars. The current budget environment makes such funding even more precarious.
- Stanford's mission is global.
Stanford is one of the few institutions in the world with the depth and breadth to help address complex, global problems. Big ideas can be expensive. Making a difference is worth it.
- Every gift makes a difference!
Most gifts made to Stanford are under $1,000. But together they add up to millions for financial aid, academics, research, and other programs.