Miami only spends 4% of the prior 3-year average of assets.
In the current year that would probably be more like 4% of $750 million or around $30 million.
Assuming asset values stay up due to investment returns and increased donations this number should grow each year.
I miss basketball season.
And football.
Very helpful. Much thanks
Jive, thanks for the link to the 6/24 Miami finance/ audit committee meeting.
A lot of great info therein.
I thought this was one of the more interesting slides.
Surprising to me just how modest the contribution of the endowment is to funding scholarships. It shows just how difficult is for Miami to compete with OSU on a student cost basis.
Miami stands out among the Ohio MAC schools but $6.6 million (2020 number) on a $564 million endowment is only 1.2% of the fund value. That averaged out to $377 per student
Even is we get the endowment up to $1 billion this would only translate to around $12 million per year. Spread over the same enrollment that works out to less than $700/student.
Looking at the data, our small endowment vs. competition, demographic challenges and our high acceptance rate (+75% which is down from over 85% a couple of years ago), I echo the question that Carm in San Diego posed. What is the ideal enrollment for Miami going forward?
Could we better served with an enrollment closer to 15,000?
The current capital campaign recognizes this is a pain point and has a target of $450m for scholarships and financial aid. If Miami wants to keep recruiting top-flight students, it needs more resources not only for merit aid to compete regionally but also better need-based aid with fewer loans for students from low- to moderate-income households. Forget OSU for a minute; more and more top schools are now tuition-free with a no-loans guarantee for students from households below a threshold income.
Reinvigorating the honors college is part of this “cornerstone,” and I’ve focused all of my giving there in recent years because I’m a big believer in the power of that program to change lives and launch future leaders across a wide spectrum of post-collegiate careers. I hope we can get some big donors as excited about scholarships and aid as they tend to be about bricks and mortar.
I know folks would rather talk about sports, but I’m glad most of the crowd here cares enough about these broader university issues to give them a good, thoughtful airing during the offseason.
https://www.givetomiamioh.org/s/916/22/landing-int.aspx?sid=916&gid=1&pgid=19635
I believe that both OSU and Michigan are now tuition free for any in-state student from a family income of less than 60K. It’s not quite Ivy/Chicago level of commitment to lower income level students, but it would seem to be a bar that Miami needs to meet to stay competitive. I think that half the current campaign being devoted to scholarship money would be a solid commitment.
