Since the start of 2020, financial markets have been very volatile, and many analysts predict that institutions will have difficulty reaching their long-term investment return targets and maintaining their current levels of endowment spending. In this environment, many institutions may need to reconsider the traditional “4% spending rule” they rely on to set their endowment spending levels, and update their spending policies due to the impact of the COVID-19 pandemic.

This session incorporates new data from the 2019 NACUBO-TIAA Study of Endowments to examine recent trends in endowment spending rates and spending policies. We'll discuss new spending strategies that institutions can consider in any future low-return environments and when accounting for future changes to spending policies in light of endowment losses due to COVID-19.

Meet the Presenters

  • Michelle Matis, chief financial officer, Northern Arizona University
  • Maeesha Merchant, senior vice president, finance and operations, California Institute of the Arts  
  • Mary Jane (MJ) Bobyock, managing director, strategic advice for nonprofit clients, SEI
  • Kathleen Masterson, assistant director, research and policy analysis, NACUBO

Legal Note

Information provided by SEI Investments Management Corporation, a registered investment adviser and wholly owned subsidiary of SEI Investments Company (SEI). NACUBO, Northern Arizona University, and California Institute of the Arts are not affiliated with SEI or its subsidiaries.