Grinnell has one of the five largest liberal arts college endowments in the country, both on an absolute basis and in terms of endowment per student. On June 30, 2009, it amounted to approximately $1.1 billion, or $687,500 per student. Only 32 percent of the endowment is restricted in use. The College’s total operating budget for the current year is $84 million. An unusually large percentage of this, about half the base budget, comes from endowment payout. Student aid accounts for 29 percent of Grinnell’s budget and the discount rate on tuition is a generous 60 percent.

Grinnell’s campus comprises 120 acres and 63 buildings, in the center of Grinnell, Iowa, two blocks from the business district and the new public library. The College also maintains the 365-acre Conard Environmental Research Area (CERA), which features varied natural habitats and the Environmental Educational Center powered by a 50kW wind turbine. The College has just undergone its fourth major building program in its history, having invested close to $265 million over the last 10 years. Fulfilling a master plan that was crafted 10 years ago, the results are impressive: a new campus center designed by Cesar Pelli and named for Joe Rosenfield ’25, the new Noyce Science Center, five new residence halls, new athletic facilities (the last phase of which is targeted for completion spring 2010), and substantial renovations to many existing buildings. And the College has retained its distinctive wide lawns and generous open spaces.

These substantial improvements to campus facilities and programs have occurred within a framework of prudent financial management. The College uses a disciplined budgeting process that links spending to a multi-year average of the endowment. It is a forward-looking model in which all constituents have an opportunity for input. The budget has been balanced for the last eight years and in all but two of the last 20 years. The result of the exceptionally responsible management of its substantial wealth means that, while many schools are forced to make significant cuts in programs or personnel, Grinnell is in excellent financial shape.

In the last few years, to reduce its reliance on the endowment, the College reduced its payout rate from 4.5 percent to 4 percent. Of the 4 percent, roughly 3 percent of the endowment has been used for direct operating expenses, while roughly 1 percent has gone to a capital reserve, which acts primarily as a reservoir for one-time capital expenses. These exceptionally prudent measures have served the College well in the current downturn. For example, in this current year, in the midst of the worst financial crisis since 1929, funding for scholarships and grants has increased by $4 million, thus assuring that the College can continue to offer need-blind admission and meet the full demonstrated needs of its students.

The College continues to resist overreliance on its considerable investment successes to fund operations and improvement. Alumni participation in the annual fund, which currently averages 40 percent over the past 15 years, has been identified as an area for improvement. Total gifts to the College average around $11 million, a number smaller than the gifts received by Grinnell’s most impressive peers.