Key Takeaways
- • Dartmouth's endowment reached $10 billion in fiscal 2026, up from $9 billion, after a 17.5% investment return, according to the College's audited 2025-2026 financial statement published Nov. 6.
- • The endowment distributed $476 million, funding approximately 34% of the fiscal 2026 operating budget, while the Board-approved fiscal 2027 payout is $496 million, a 4.1% increase.
- • Dartmouth's 17.5% return trailed six of seven Ivy peers, ranking ahead only of Cornell (16.9%), with Penn leading at 27.4%, according to Investment Office chief operating officer Heather Huff and chief investment officer Alice Ruth.
- • Dartmouth's deferred tax liability rose from $34.2 million to $154.1 million after the federal excise tax on endowments increased from 1.4% to 4%, with $119.9 million in deferred tax expense recorded in fiscal 2026.
- • Over ten years, Dartmouth's 11.7% annualized return matched Yale's and exceeded Princeton, Harvard and Columbia, though Ruth attributed the one-year gap to policy limits on single-position concentration.
Summary
Dartmouth's endowment grew to $10 billion in fiscal 2026 from $9 billion a year earlier, after a 17.5% investment return, according to the College's 2025-2026 audited financial statement, published online November 6. The endowment grew $1.52 billion from investment returns and gifts, comprising $1.37 billion in net investment returns and $145.29 million in gifts before distribution. New gifts fell 54% from $317.2 million in fiscal 2025, which had been boosted by an "extraordinary bequest" of more than $150 million from Barbara Britt and Glenn Britt '71 Tu '72.
The endowment distributed $476 million to support operations, roughly 34% of the fiscal 2026 operating budget, according to Huff and Ruth. Dartmouth's Board of Trustees-approved spending formula is designed to smooth fluctuations in returns; the fiscal 2027 payout of $496 million is approximately $19.8 million higher. Approximately $2.73 billion of the endowment was designated for financial aid, up from $2.39 billion, even as full-time undergraduates receiving need-based aid declined from 2,407 to an estimated 2,174, per the Common Data Sets. Roughly 78% of the endowment is donor-restricted.
Dartmouth's 17.5% return trailed six of its seven Ivy peers, according to Ruth. Penn led at 27.4%, followed by Harvard at 27.1%, Yale at 26.3%, Princeton at 23.7%, Brown at 19.6% and Columbia at 18.3%, with Cornell at 16.9%. Over ten years, Brown led at 13.6%, Penn posted 12%, and Dartmouth's 11.7% matched Yale and exceeded Princeton (11.3%), Harvard (11.1%) and Columbia (9.9%). Cornell did not disclose its ten-year figure. Ruth said the ten-year return beat an internal Board benchmark by roughly 200 to 300 basis points but declined to disclose the benchmark. Ruth attributed the one-year gap to internal policies limiting single-investment concentration, stating "Our strategies aren't that different." Huff said the office prioritizes avoiding downside over maximizing annual returns. Global equities returned more than 30%, venture capital (over 25% of the endowment) returned about 17%, and data center real estate contributed to gains. Sacerdote, an economics professor and NBER research associate, said the year's returns were "unusual" and largely reflected differences in exposure to individual companies such as SpaceX.
The federal endowment excise tax rose from 1.4% to 4% in July under the 2025 One Big Beautiful Bill Act, according to Huff. Deferred tax liability rose from $34.2 million to $154.1 million as the College re-measured obligations at the higher rate, reducing reported net investment return. Huff called the increase "still very manageable" and said the Investment Office is "not changing" its strategy. Sacerdote noted the final rate was far below House-passed proposals of 14% to 21%. Dartmouth expects to release its annual endowment report in late December.
The endowment distributed $476 million to support operations, roughly 34% of the fiscal 2026 operating budget, according to Huff and Ruth. Dartmouth's Board of Trustees-approved spending formula is designed to smooth fluctuations in returns; the fiscal 2027 payout of $496 million is approximately $19.8 million higher. Approximately $2.73 billion of the endowment was designated for financial aid, up from $2.39 billion, even as full-time undergraduates receiving need-based aid declined from 2,407 to an estimated 2,174, per the Common Data Sets. Roughly 78% of the endowment is donor-restricted.
Dartmouth's 17.5% return trailed six of its seven Ivy peers, according to Ruth. Penn led at 27.4%, followed by Harvard at 27.1%, Yale at 26.3%, Princeton at 23.7%, Brown at 19.6% and Columbia at 18.3%, with Cornell at 16.9%. Over ten years, Brown led at 13.6%, Penn posted 12%, and Dartmouth's 11.7% matched Yale and exceeded Princeton (11.3%), Harvard (11.1%) and Columbia (9.9%). Cornell did not disclose its ten-year figure. Ruth said the ten-year return beat an internal Board benchmark by roughly 200 to 300 basis points but declined to disclose the benchmark. Ruth attributed the one-year gap to internal policies limiting single-investment concentration, stating "Our strategies aren't that different." Huff said the office prioritizes avoiding downside over maximizing annual returns. Global equities returned more than 30%, venture capital (over 25% of the endowment) returned about 17%, and data center real estate contributed to gains. Sacerdote, an economics professor and NBER research associate, said the year's returns were "unusual" and largely reflected differences in exposure to individual companies such as SpaceX.
The federal endowment excise tax rose from 1.4% to 4% in July under the 2025 One Big Beautiful Bill Act, according to Huff. Deferred tax liability rose from $34.2 million to $154.1 million as the College re-measured obligations at the higher rate, reducing reported net investment return. Huff called the increase "still very manageable" and said the Investment Office is "not changing" its strategy. Sacerdote noted the final rate was far below House-passed proposals of 14% to 21%. Dartmouth expects to release its annual endowment report in late December.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.