Macalester has three main revenue sources: its endowment, tuition, and philanthropy. The purpose of the college\u2019s endowment is to provide a sustainable and reliable level of support to Macalester\u2019s operating budget. Each year approximately 5 percent is distributed from the endowment based on a formula which is designed to support the college\u2019s activities while preserving the endowment\u2019s value over time and thus being responsible to those who will benefit from Macalester in the future.<\/p>\n\n\n\n
The endowment revenue funds approximately 1\/3 of Macalester\u2019s operating budget. The rest comes from tuition and fees and annual philanthropic support. The revenue from our endowment enables the college to spend more on educating students, but it does not lessen the need for tuition or donor generosity. Relying entirely on the endowment to fund operations would quickly deplete it.<\/p>\n\n\n\n
For the fiscal year that ended May 31, 2025, Macalester\u2019s endowment portfolio totaled $899 million. The endowment is broadly diversified and seeks returns sufficient to preserve and potentially grow the inflation-adjusted value over time, providing a reliable foundation for Macalester\u2019s future.<\/p>\n\n\n\n