The trustees of the Northwestern Foundation & Alumni Association (Foundation) Executive Committee unanimously approved the payout increase from 3.25 percent to 4 percent, beginning in the fall of 2026. This action took place at the January 20 committee meeting.
This increase in endowment payout will provide an additional $365,000 to the university, bringing the total of endowment fund distribution to $1,710,330 in the fall.
“We are pleased to be in the position to increase our endowment payout and provide this additional support to our students and to our university,” said Skeeter Bird, CEO, Northwestern Foundation & Alumni Association. “Our top priority remains to provide a predictable level of funding to Northwestern, regardless of the challenges brought by turbulent markets. Our donors want and expect a maximum impact for their investment. This adjustment allows us to deliver that.”
“I appreciate Mr. Bird and our Foundation board for their approval to increase our endowment payout,” said Dr. Bo Hannaford, President, Northwestern Oklahoma State University. “This is
a great investment in our students, our faculty, and our programs. It will be immediately beneficial.”
Payout History
According to Bird, the payout was 4 percent until 2009. The 2007-09 financial crisis – the Great Recession – resulted in a 27 percent loss to Northwestern’s endowment. Reducing the payout to 3.25 percent allowed the Foundation to provide crucial support to the university while also recovering and rebuilding from the financial hit. Because of the tremendous and continuous investment from Northwestern alumni and donors, the endowment has grown from $9.8 million to $48.4 million during this same time period.
The goal to reinstate the 4 percent payout remained with the Foundation’s Investment Committee over the years.
“It took several years to fully recover from that financial storm,” shared Bird. “Our challenges included pandemic-driven volatility, high inflation and debt, and global market tensions. Our strong financial performance of the last three years, along with the changes in the accounting rules administered by the Uniform Prudent Management of Institutional Funds Act (UPMIFA), has placed the Foundation in a position to secure a tactical reserve of funds to withstand future mild to moderate financial markets.
“I am grateful to the many individuals who have stewarded our donors’ investments. Past and present members of the Investment Committee dedicated time and expertise to secure this positive financial position. Our investment advisors at 6 Meridian (Wichita, Kan.) and the local firm of Edward Jones have provided collective keen guidance to place the Foundation in this healthy fiscal outlook. Our auditors at Hinkle & Company, PC, also have been instrumental in this process.”