The Board of Trustees Investment committee is staying the course on the percentage of money Pitt takes from its endowment funds for the fourth year in a row.
The committee voted on June 13 to keep the spending policy the same for the 2023-24 operating budget.
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 $6.47 per share — a 5.3 percent increase over the $6.14 per share in effect for fiscal year 2022-23.
Similarly, the distribution from the consolidated endowment fund is based on 4.25 percent of the three-year average fair market value of the assets or $5.79 per share. This is a 5.3 percent increase from the income distribution amount of $5.49 per share for FY 2023.
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 2023-24. Lawmakers are required to pass the state budget by the end of June, although they haven’t always met that deadline.
Pitt’s endowment, which gained $1.4 billion in fiscal year 2020-21, dropped in fiscal year 2021-22 — from $5.68 billion to $5.56 billion, according to the University’s annual 990 IRS form, which was filed on May 15. The quasi-endowment makes up 51.5 percent of the total.
— Susan Jones
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