Andover/Exeter endowments...what does it really mean?

mountainhiker
Sat, 07 Apr 2012 13:18:15 +0000

@BAREERS - I think large endowments are in some ways a function of how “loyal” alumni are to their school. If you feel like your prep school was a positive influence, perhaps even a life-altering influence, you are probably more likely to want to “give back” to the school, and help other kids have the same experience you did.

Schools with large endowments can usually offer more financial aid, which can lead to more economic diversity on campus. And when it comes time for a capital campaign (to build that new science building, for instance, or upgrade the dorms or athletic facilites) they usually have a large group of alumni to go to get those things accomplished.

When looking at endowments, I think it is very important to look at Total Endowment divided by number of students. A school like Andover (the prep school with the highest number of students, I think) with more than 1,100 students at the school, will naturally have many more alumni (and potential donors) to “tap" than a smaller school.


The ratio of endowment/student at Andover is $700M/1100, or $636K per student.
The ratio at Choate is $217M/850, or $255K per student. (It is important to note that Choate is in the midst of a capital campaign to add $110M to their endowment; if that is successful, the ratio increases to $327/850, or $385K per student.


And, just as a comparison (my bias is showing here!)

The ratio at Thacher is $100M/240, or $417K per student