{"id":147,"date":"2025-01-30T11:54:56","date_gmt":"2025-01-30T16:54:56","guid":{"rendered":"https:\/\/www.bates.edu\/endowment\/?page_id=147"},"modified":"2026-02-13T09:50:48","modified_gmt":"2026-02-13T14:50:48","slug":"qa-bates-endowment","status":"publish","type":"page","link":"https:\/\/www.bates.edu\/endowment\/qa-bates-endowment\/","title":{"rendered":"What does the Bates endowment do and why does it matter?"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"alignright size-medium is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"320\" src=\"https:\/\/www.bates.edu\/endowment\/files\/2025\/01\/230907_Chase_Ribbon_Cutting_0461-1-400x320.webp\" alt=\"Garry Jenkins told a gathering on Sept. 7 that he has noticed a frequent theme in chatting with members of the college community: their warm feelings for 104-year-old Chase Hall. The ceremony took place in the Chase Hall courtyard in a dreamlike haze of angled sun and temps nudging 90. Also speaking was Geoff Swift, Bates vice president for finance and administration and treasurer, who joined Jenkins in thanking the parties who helped bring the renovation to a successful conclusion \u2014 including Pam Wichroski, retired head of capital planning and construction, who was an early advocate for the project.\n\nStudent government Co-President Dhruv Chandra \u201925 helped Jenkins and Swift cut the wide garnet ribbon to end the re-opening formalities, whereupon some 250 folks attending the event made for the refreshment tables or entered Chase for a look around. \n\nThere are \u201done million interesting, comfortable nooks and crannies where you can hide out if you need to make a call, review your notes, or have a mindful few minutes,\u201d estimated another speaker at the reopening, Allen Delong, senior associate dean for Purposeful Work and one of the building\u2019s new inhabitants.\" class=\"wp-image-170\" style=\"width:350px\" srcset=\"https:\/\/www.bates.edu\/endowment\/files\/2025\/01\/230907_Chase_Ribbon_Cutting_0461-1-400x320.webp 400w, https:\/\/www.bates.edu\/endowment\/files\/2025\/01\/230907_Chase_Ribbon_Cutting_0461-1-900x720.webp 900w, https:\/\/www.bates.edu\/endowment\/files\/2025\/01\/230907_Chase_Ribbon_Cutting_0461-1-768x614.webp 768w, https:\/\/www.bates.edu\/endowment\/files\/2025\/01\/230907_Chase_Ribbon_Cutting_0461-1-785x628.jpg 785w, https:\/\/www.bates.edu\/endowment\/files\/2025\/01\/230907_Chase_Ribbon_Cutting_0461-1-1536x1229.webp 1536w, https:\/\/www.bates.edu\/endowment\/files\/2025\/01\/230907_Chase_Ribbon_Cutting_0461-1.webp 1686w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><figcaption class=\"wp-element-caption\">In September 2023, Geoff Swift, vice president for finance and administration and treasurer, speaks at the ceremony for the reopening of Chase Hall following extensive renovations. (Phylllis Graber Jensen\/Bates College)<\/figcaption><\/figure>\n<\/div>\n\n\n<p>As the college\u2019s treasurer and vice president for finance and administration, Geoff Swift has a broad portfolio that includes the college\u2019s finance, facilities, dining, and human resource functions.<\/p>\n\n\n\n<p>His title suggests he runs all things financial at Bates, but there\u2019s one big area \u2014 big, as in $486 million big \u2014 that he does not run: the college\u2019s endowment.<\/p>\n\n\n\n<p>That responsibility falls to the college\u2019s trustees, specifically the Committee on Investments, who have what\u2019s known as a fiduciary responsibility. It\u2019s their job to maintain, protect, and grow the endowment.&nbsp;<\/p>\n\n\n\n<p>Swift and the Bates accounting team enter the picture running day-to-day endowment operations, including allocating endowment returns to support the annual budget. Meanwhile, a third partner, an outside chief investment officer (OCIO), provides specialized knowledge and guidance to Bates.&nbsp;<\/p>\n\n\n\n<p>We sat down with Swift recently to talk about the endowment, how it is managed and why it matters to Bates. He shared answers to frequently asked questions:<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">By the Numbers<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Market Value<\/strong>: $486 million as of June 30, 2025<\/li>\n\n\n\n<li><strong>Amount Drawn to Support Budget<\/strong>: $21.8 million for FY25 (approximately 15 percent of the total budget)<\/li>\n\n\n\n<li><strong>Approximate Number of Individual Funds<\/strong>: 1,400<\/li>\n\n\n\n<li><strong>Oldest Endowed Fund<\/strong>: Alvin D. Dudley Scholarship Fund, created in 1867<\/li>\n<\/ul>\n\n\n\n<div style=\"height:75px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"38645bcd-b719-43f3-88ef-3473363e2786\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"38645bcd-b719-43f3-88ef-3473363e2786\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">What is the overall purpose of Bates\u2019 endowment?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"38645bcd-b719-43f3-88ef-3473363e2786\">\n<p>The endowment is the living history of Bates College. When a donor makes a gift to the endowment, the college agrees to maintain that gift in perpetuity to support whatever it is the donor wishes to support.&nbsp;<\/p>\n\n\n\n<p>The endowment, which is a collection of more than 1,400 individual funds, reflects the interests of generations of Bates donors. It\u2019s a testament to their philanthropy and their vision for Bates, creating a link between the past, present, and future of the college.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"1e90b3d6-b21d-4d1c-9bd5-0debb9d5f7aa\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"1e90b3d6-b21d-4d1c-9bd5-0debb9d5f7aa\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">How does the endowment reflect the enduring priorities at Bates?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"1e90b3d6-b21d-4d1c-9bd5-0debb9d5f7aa\">\n<p>Enduring priorities are ones that transcend generations. You wouldn\u2019t want to accept an endowment gift restricted for something unlikely to persist over time, like a fund to purchase and maintain typewriters. Enduring values, financial aid, academics, professorship, and the library, remain consistent.<\/p>\n\n\n\n<p>When a college accepts an endowment to support something specific, there is typically some flexibility written into the agreement, like the language of a fund given by Alice Swanson Esty, Class of 1925, to give the director of the Bates Orchestra funds to purchase \u201cwhatever is needed musically in changing times.\u201d Alice Esty also gave the Esty Professorship to Bates.&nbsp;<\/p>\n\n\n\n<p>Bates also has an endowed fund given by Edna Gad, Class of 1920, that provides income to purchase \u201cgood-quality single beds\u201d for students. That need has persisted!<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"75fb46dc-785d-423e-a602-239706c712aa\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"75fb46dc-785d-423e-a602-239706c712aa\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">What role do donors play in growing the endowment?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"75fb46dc-785d-423e-a602-239706c712aa\">\n<p>Donor gifts are essential to endowment growth. While investment returns contribute, significant increases come from philanthropy. Bates\u2019 endowment is smaller than many peers, so donor support is critical to reducing reliance on tuition revenue and ensuring long-term financial health. Donors\u2019 generosity \u2014 whether for scholarships, faculty positions, or other priorities \u2014 helps sustain Bates\u2019 mission.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">How does the endowment connect to donors\u2019 lived experiences?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\">\n<p>Each fund tells a story of belief in Bates. Each gift is a gesture, a moment of generosity, when somebody says, \u201cI believe in Bates. I want Bates to be better and more fully supported.\u201d<\/p>\n\n\n\n<p>Some endowments celebrate achievements, while others honor moments of loss, like the Otis Endowment, which <a href=\"https:\/\/www.bates.edu\/environment\/the-otis-program\/philip-j-otis\/\">memorializes a young alumnus, Philip Otis \u201995<\/a>, a park ranger who died rescuing a hiker. It&#8217;s inspirational. It&#8217;s somebody who&#8217;s giving back.<\/p>\n\n\n\n<p>There\u2019s no \u201cMagic Bates\u201d that can exist absent donors to the endowment and donors to the Bates Fund. And so every time you see an MOU [Memorandum of Understanding, the document that expresses the gift agreement between donor and Bates], it is a touching moment of generosity.<\/p>\n\n\n\n<p>These endowments address a wide range of needs \u2014 from scholarships and professorships to athletics and campus resources. Donors\u2019 priorities reflect their personal values and a desire to ensure that Bates continues to thrive.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">How does investing an endowment differ from individual retirement investments?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\">\n<p>The first difference is the timeframe. A retirement portfolio might have a 10-, 20-, or 30-year horizon, while an endowment\u2019s horizon is perpetuity. In Bates\u2019 case, more than 150 years so far.&nbsp;<\/p>\n\n\n\n<p>Second, endowments are more diversified and sophisticated than a typical retirement portfolio. For instance, private equity plays a significant role, offering an illiquidity premium that can provide higher returns over time. However, this complexity also means that endowments sometimes underperform simpler portfolios in periods when U.S. equities dominate the market, as we\u2019ve seen in the last decade or so.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">Why does Bates\u2019 endowment need to be managed differently than a retirement portfolio?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\">\n<p>An endowment must generate annual returns to support the college\u2019s operations while preserving its purchasing power for future generations. Achieving this balance is called intergenerational equity.<\/p>\n\n\n\n<p>It\u2019s crucial to spend enough of the endowment to meet current needs but not so much that it undermines the endowment\u2019s ability to support the college in perpetuity. At Bates, we maintain a spending rate of just 5 percent, ensuring sustainability over the long term.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">What are some common misconceptions about endowments?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\">\n<p>A common misconception is that we can grow the endowment indefinitely to solve all financial challenges. In reality, Bates can\u2019t simply invest its way to a larger endowment \u2014 philanthropic gifts are essential for growth.&nbsp;<\/p>\n\n\n\n<p>Another misconception is comparing endowment management to personal retirement investments. While there are similarities, an endowment\u2019s perpetual horizon, annual draw, and risk-return balance make it fundamentally different.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">How does the endowment support Bates\u2019 budget?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"d6a7a9cd-855b-4e19-86db-3986aaafc419\">\n<p>In fiscal year 2025, the endowment contributed $21.8 million to the college\u2019s operating budget, accounting for 15 percent of total revenue. Another 6 percent came from the Bates Fund. Together, philanthropy provides 21 percent of Bates\u2019 revenue. This reduces reliance on tuition and ensures the college can offer financial aid that meets the demonstrated need of all students and maintain our educational excellence.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">How does Bates balance current and future needs?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\">\n<p>It\u2019s a balance between supporting today\u2019s students and preserving the endowment\u2019s purchasing power for future generations. Bates emphasizes disciplined spending, maintaining a spending rate under 5 percent. This careful planning ensures that the endowment remains a stable and sustainable source of funding for the college\u2019s mission.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">What is the fiduciary responsibility of the Trustees\u2019 Committee on Investment?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\">\n<p>Their responsibility is to maintain, protect, and grow the endowment. They set investment policies, oversee asset allocation, and monitor performance. The committee ensures that the endowment serves current and future generations, balancing risk and return to support Bates\u2019 financial sustainability and mission.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">What does Investure bring to the table that excites you most?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\">\n<p>I\u2019m particularly impressed by their commitment to institutional clients and their deep understanding of our needs. They limit the number of clients they serve, ensuring personalized attention and strategic alignment. Their succession planning, stability, and strong performance with peer institutions like Middlebury and other small liberal arts colleges like Dickinson are also reassuring. They\u2019re small but mighty \u2014 big enough to access the best managers yet selective enough to prioritize long-term relationships.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-bates-shortcodes-btn btn-wrap\" id=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\"><div class=\"btn-action\" role=\"button\" tabindex=\"0\" aria-controls=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\" aria-pressed=\"false\" aria-expanded=\"false\"><h3 class=\"btn-title\">Can my friends and I pool our resources in order to create an endowment?<\/h3><div class=\"btn-arrow\"><\/div><\/div><div class=\"btn-content\" id=\"f6e3a8af-d03c-4d66-9f2c-f7107659de0f\">\n<p>Yes. Group gifts made in recognition of a common interest or in honor of a beloved member of the Bates community are a powerful way to extend the impact of philanthropy. Bates advancement staff can work with you to suggest ways in which your group may accomplish this goal. Please contact Director of Leadership Giving <a href=\"mailto:swilliams2@bates.edu\">Seth Williams<\/a> to begin a conversation.<\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>As the college\u2019s treasurer and vice president for finance and administration, Geoff&hellip;<\/p>\n","protected":false},"author":104,"featured_media":153,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_hide_ai_chatbot":false,"_ai_chatbot_style":"","associated_faculty":[],"_Page_Specific_Css":"","_bates_restrict_mod":false,"_dimp_site_id":"","_dimp_override_contact":false,"_table_of_contents_display":false,"_table_of_contents_location":"","_table_of_contents_disableSticky":false,"_is_featured":false,"footnotes":"","_bates_seo_meta_description":"","_bates_seo_block_robots":false,"_bates_seo_sharing_image_id":0,"_bates_seo_sharing_image_twitter_id":0,"_bates_seo_share_title":"","_bates_seo_canonical_overwrite":"","_bates_seo_twitter_template":""},"class_list":["post-147","page","type-page","status-publish","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.bates.edu\/endowment\/wp-json\/wp\/v2\/pages\/147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bates.edu\/endowment\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.bates.edu\/endowment\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/endowment\/wp-json\/wp\/v2\/users\/104"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/endowment\/wp-json\/wp\/v2\/comments?post=147"}],"version-history":[{"count":18,"href":"https:\/\/www.bates.edu\/endowment\/wp-json\/wp\/v2\/pages\/147\/revisions"}],"predecessor-version":[{"id":864,"href":"https:\/\/www.bates.edu\/endowment\/wp-json\/wp\/v2\/pages\/147\/revisions\/864"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/endowment\/wp-json\/wp\/v2\/media\/153"}],"wp:attachment":[{"href":"https:\/\/www.bates.edu\/endowment\/wp-json\/wp\/v2\/media?parent=147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}