Endowment FAQs
What is an endowment?
Endowments, rather than current-use funds, are often referred to as the “gifts that keep on giving” by providing donors the opportunity to support multiple generations of students and faculty, thereby providing a lasting personal legacy and impact on Stony Brook. When an endowment gift is received, it is placed in a long-term investment fund, and the investment returns generated from the principal are used for university initiatives. The invested principal is preserved for the future.
Are there different types of endowments?
Yes, there are two types — restricted and unrestricted:
Restricted: Most endowments are restricted, which means the donor designates where the money
can be spent. For instance, an endowment may support the research of a faculty member
for a specified amount of time or throughout the duration of their tenure.
Unrestricted: Unrestricted endowment gifts are far less common in higher education, but they are incredibly valuable because unrestricted funds may be spent at the discretion of the university’s leadership so that they can seize new opportunities that may otherwise be out of reach.
How large is the Stony Brook Foundation endowment?
The Foundation’s most recent audited endowment market value is approximately $370.3 million.
Why isn’t the Stony Brook Foundation endowment larger?
While we have achieved significant fundraising gains over the past decade, Stony Brook University — founded in 1957— is one of the youngest among the 71 institutions that are members of the Association of American Universities (AAU). Therefore, we’ve had only a fraction of the 100+ years most of our peer institutions have had to raise funds and build an endowment.
If Stony Brook is a public university, why does it need private gifts?
Private gifts allow the university to attract and retain the best and brightest faculty, provide scholarships, build first-class facilities and continue the quality education and research programs that are the hallmark of Stony Brook. New York state provides less than 18 percent of the university’s annual operating budget.
Who decides the university’s fundraising priorities?
The university’s fundraising priorities are established by President Maurie McInnis, PhD, in consultation with her cabinet, deans and key faculty and staff. Fundraising priorities evolve and are adjusted based upon the university’s needs and donor opportunities.
The Simons Infinity Investment
What is the Simons Infinity Investment?
On June 1, 2023, Stony Brook University received the Simons Infinity Investment, which is the largest unrestricted endowment gift in the history of higher education. This will allow the university to utilize the funds based on where the resources are needed most at that moment. And it is important to highlight that this multiyear investment will take several years to build to its full, sustaining impact.
How is the gift structured?
The Simons gift will be disbursed over a seven-year period. Within the first three years, the initial $200 million will serve as a challenge to other philanthropists. This means that Stony Brook will only receive the first $200 million from the Simons Foundation when an additional $200 million is raised from other supporters in either restricted or unrestricted endowment gifts. In 2027, the university will receive another $100 million from the Simons Foundation endowment gift. Then, the remaining $200 million will be gifted to the university over the final three years.
Additionally, under New York state’s 1:2 matching program, the state will provide an additional dollar for every two endowment dollars raised.
The Simons Infinity Investment, along with the New York state match, will expand the size of the university’s endowment and will pave the way for greater freedom to invest strategically and respond to emerging opportunities for years to come.
The Simons Infinity Investment could total $1 billion in funds for Stony Brook’s endowment and cement Stony Brook’s place as New York’s flagship of the future.
Will the Simons Foundation be making any recommendations on what should be done with the gift?
No. The gift is unrestricted, and Stony Brook University will decide where and how the gift is implemented.
What does Stony Brook University plan to do with the $500 million endowment gift?
This historic level of support will transform Stony Brook by giving the university the means to invest in areas most urgent and necessary for our communities, our state and the world. The endowment allows the university to invest to meet immediate needs and make strategic plans for its future. This gift increases the size of the university’s endowment and will pave the way for greater freedom to invest strategically and respond to emerging needs and opportunities, such as supporting stable funding for student scholarships for a diverse student body, endowed professorships, innovative research, development of new academic fields, provision of excellent clinical care and university rankings and reputation.
Why did the Simons Foundation make such a large gift to the Stony Brook University’s endowment?
Both Jim Simons, Hon. ’92 and Marilyn Hawrys Simons ’74, PhD ’84, Hon. ’08, co-founders of the Simons Foundation, have connections to Stony Brook University and have generously supported the institution for decades. The Simons Foundation continues to invest in Stony Brook University’s future as an internationally renowned research institution with a contribution of a $500 million unrestricted endowment gift.
Why has the Simons Foundation partnered to support Stony Brook University specifically?
Jim and Marilyn Simons both have personal relationships with the university. Jim joined Stony Brook as chair of the mathematics department in 1968, and Marilyn is a double alumna of Stony Brook. They met at the university and built a life and legacy of giving back to their communities. The Simons Foundation’s support, along with foundation President David Spergel’s ongoing commitment to advancing the frontiers of research in mathematics and the basic sciences over the past several decades, has enabled Stony Brook to earn its place as the top public university in New York state. This gift will cement Stony Brook as New York’s flagship of the future, helping the institution to continue to meet and exceed its commitment to educational excellence, research innovation and community investment.
What is the Simons Foundation?
The Simons Foundation was founded in 1994 by Jim and Marilyn Simons to advance the frontiers of research in mathematics and the basic sciences.
What is the Simons Foundation’s history with Stony Brook University?
Since its formation in 1994, Jim and Marilyn Simons and the Simons Foundation have donated over $1.225 billion to Stony Brook while also inspiring over 2,100 other donors to give to the university. Their transformational support has impacted every corner of the Stony Brook campus and beyond, from the Renaissance School of Medicine and the Simons Center for Geometry and Physics to the new Stony Brook Simons STEM Scholars program and more.
In addition to this historic gift and previous gifts to Stony Brook University, most recently, following Stony Brook’s successful bid to serve as the anchor institution of The New York Climate Exchange, the Simons Foundation committed $100 million of the project’s expected $700 million budget. These funds will help establish a climate research, education and green-economy training hub, set to transform how the world responds to the climate crisis and pioneer investigation into environmental, community and health outcomes and impacts. Endowment funds will not be used for this initiative.
New York State Matching Contribution to University Center Endowments
What is the NY state matching contribution to university center endowments?
As part of her 2023 budget address, Governor Kathy Hochul announced a state endowment match challenge. The state has allocated $500 million for the program, which is open to SUNY’s four university centers, including Stony Brook. The state match program will match $1 for every $2 given to an endowment. This means that if someone makes a $100,000 endowment gift, the state will add $50,000 to it. The match program, a first for the state, runs through 2026 or until the funds are exhausted.
Does the Simons Infinity Investment qualify for the New York state endowment matching program?
Yes, it does. This investment proposition is unparalleled; however, it is also limited. The state has allocated $500 million for its matching endowment program — a generous sum, but the program is open to all four SUNY university centers, and the public money sunsets once the full amount is matched.
When did the program begin?
The program began on May 12, 2023, and will continue through April 1, 2026, or until the total amount set aside by the state is fully allocated. This is an exciting opportunity for our donors to join the state of New York and the Simons Foundation in propelling Stony Brook to new levels of excellence.
What kinds of gifts are eligible to be matched?
To qualify for the match, the donor must make their commitment in the form of cash or a pledge. Gifts from individuals, corporations, foundations and donor-advised funds are eligible, as are qualified charitable distributions. Commitments may be multiyear pledges with specific payment schedules.
Where will matched funds go?
With this limited-time, limited-opportunity program, all donor contributions made to new or existing endowed funds will generate matching funds from the state of New York and the Simons Foundation.
Unrestricted endowment funds, such as the President’s Innovation and Excellence Fund, provide committed campus leaders, like deans and the university president, with important discretionary dollars to advance new, strategic and innovative ideas that further Stony Brook’s goals. These funds also provide necessary resources for needs that emerge during the year and are not covered by current operational budget or research grants, allowing SBU to act quickly to pursue new opportunities or assist students in need.
While the university aims to grow its unrestricted endowment funds, including the President’s Innovation and Excellence Fund through the two matches, the option to designate matching funds to a broad list of unrestricted funds or the fund supported by the donor’s gift is available for gifts over $100,000. The SBU Advancement team will work closely with donors to designate matching dollars to accomplish the donors’ goals. Donors who make gifts that are eligible for matching funds will receive recognition credit in the amount of their original gift plus the amount of the match.
More Information
For more information about Endowments, please contact:
Scott Barrett
Senior Associate Vice President for Advancement
(631) 632-9128