April 3, 2019: Response to Endowment Question

Hampshire community members have asked for information about the College's draws from its endowment as designated by the Board since 2017. Draws from the endowment are approved by the Board of Trustees, and are disclosed in the College's annual financial reports.

Here are details of Hampshire's endowment investment returns and draws on endowment that were distributed for College operations, as reported in the College’s Financial Report 2017-18. After these draws, the College currently has approximately $1.5 million of endowment funds for unrestricted purposes approved by the Board, plus $9.3 million classified as quasi-endowment funds in its finances that are restricted by donor intent. Hampshire's Board Designated (Quasi) funds are currently $10.8 million as of April 2, 2019, down from $11.1 million on June 30, 2018. For reference, see page 13 in the College's Financial Report 2017-18:

For 2018 and 2017, the percentage distributed from the endowment for use in the College’s operating revenues was 4.5%.

In addition, the Board approved a draw of $250,000 for both years (total $500,000) to help fund development office staffing across alumni relations, fundraising, and stewardship.

In 2015, the board approved $2.3 million of endowment draws to support capital projects and early retirements for the years 2015 through 2017; (Hampshire drew the final $300,000 for the year ended June 30, 2017).

In 2018, the board approved $3.25 million of endowment draws to support a Voluntary Separation Incentive Program (voluntary workforce reduction) as well as to fund the College’s 2017-18 financial sustainability plan; (Hampshire drew $2,550,000 for the year ended June 30, 2018 for operating revenues and will draw the remaining $700,000 in FY19).

These draws on endowment were approved by the Board before President Miriam Nelson was appointed in April, 2018.