by Christopher L. Eisgruber ’83, provost

As Princeton’s chief academic and budgetary officer, I am reminded every day of the importance of the endowment to the University. The endowment enables us to sustain our unique blend of research and education. It permits us to offer an exceptional financial aid program. It allows us to be confident that future generations will share fully in the benefits of the Princeton experience. It lets us ask critical questions about how we can make this University still better, and provides us with the foundation we need to turn aspiration into action.

In recent years, the endowment has grown remarkably, benefited by a thriving economy, wise investment decisions, and the generosity of Princeton’s alumni and friends. It has reached a size that would be very gratifying to my predecessors in the ’70s and ’80s, now funding nearly 40% of our annual operating budget, or more than twice what it covered 25 years ago. I frequently hear about the endowment’s growth when I decide issues about the University’s budget. “How is it possible that Princeton can’t afford my project,” a faculty member will ask, “when our endowment is so big?” “How can the University need to raise more money,” an alumnus will say, “when it already has so much?”

These are good questions—I have asked them myself—and I believe they have good answers. Indeed, my work as provost leaves me convinced that Princeton must continue to seek new resources if it is to fulfill the lofty aspirations that we all have for the University. Understanding why this is so requires a look at the four different but linked precepts that drive the management of Princeton’s finances and allow the University to pursue its mission effectively over the long term:

1. Ensuring Intergenerational Equity
2. Paying for Leadership in Higher Education
3. Growing as Knowledge Grows
4. Encouraging Spirits to Soar