Stanford Facts: Finances & Governance

Finances

In 2009-10, Stanford is a $3.7 billion enterprise.This figure represents the university’s consolidated budget for operations, a compilation of all annual operating and restricted budgets that support teaching, scholarship and research, including the budgets of all schools and administrative areas and the SLAC National Accelerator Laboratory. It does not include the capital budget or the budget for hospital and clinical services. The capital budget for 2009-10 is $647 million.

Sources of Funds for FY 2009-10
30% sponsored research
22% endowment income
2% other investment income
17% student income
13% health care services income
6% expendable gifts and net assets released
10% other income
Expenditures for FY 2009-10
53% salaries & benefits
31% operating expenses
10% SLAC National Accelerator Laboratory
6% financial aid

Endowment

Stanford’s $12.6 billion endowment (as of Aug. 31, 2009) provides an enduring source of financial support for fulfillment of the university’s mission of teaching, learning and research. About 75 percent of the endowment is designated by donors for a specific purpose. There are more than 6,000 endowed university funds.

Each year, a portion of investment return from the endowment is used to support annual operating expenses. The remainder of the return is reinvested in the endowment to maintain its value over time. The Stanford Management Company (SMC) was established in 1991 to manage Stanford’s financial and real estate assets. SMC is a division of the university with oversight by a board of directors appointed by the university board of trustees.

Fundraising

Stanford University in 2008-09 raised $640.1 million from 70,509 donors, making Stanford’s development program the most successful among universities nationwide. Nearly 33 percent of undergraduate alumni gave gifts to the university. The gifts included $247.1 million for research, $55.7 million in student aid, $29.4 million for professorships and other faculty support and $85.3 million for building projects.

Through Stanford’s annual giving programs, alumni, parents and friends are encouraged to make expendable gifts for general university and school purposes. From time to time, individuals, foundations and corporations make major gifts to increase the university’s endowment, to construct new buildings or to start new programs. In addition, some alumni and friends include Stanford in their estate planning or make arrangements for a deferred gift to the university. For more information, call (650) 723-8500 or visit http://givingtostanford.stanford.edu.

Fiscal Year Gifts in Millions
1997 $312.3
1998 $319.4
1999 $319.6
2000 $580.4
2001 $469.0
2002 $454.8
2003 $486.1
2004 $524.2
2005 $603.6
2006 $911.2
2007 $832.3
2008 $785.0
2009 $640.1

University Governance

Stanford University is a trust with corporate powers under the laws of the State of California. The university is a tax-exempt entity under section 501(c)3 of the Internal Revenue Code. Under the provisions of the Founding Grant, the Board of Trustees (with a maximum membership of 35) is custodian of the endowment and all the properties of Stanford University. The board administers the invested funds, sets the annual budget and determines policies for operation and control of the university. Among the powers given to the trustees by the Founding Grant is the power to appoint a president. The board delegates broad authority to the president to operate the university and to the faculty on certain academic matters. The formal legal name is “The Board of Trustees of the Leland Stanford Junior University.”

The Stanford Hospital and Clinics and the Lucile Salter Packard Children’s Hospital at Stanford are nonprofit California corporations. They are separate from the university and from one another.

Accreditation

Stanford University is accredited by the Accrediting Commission of Senior Colleges and Universities of the Western Association of Schools and Colleges.

Board of Trustees

(as of September 1, 2010)

Stanford Administration

Cabinet

Staff

In 2009, 10,101 staff members supported teaching, learning and research at Stanford, including 5,051 managerial and professional staff, 2,851 clerical and technical staff, and 731 service and maintenance staff. There are 1,468 employees at the SLAC National Accelerator Laboratory. For more information about working at Stanford, visit http://jobs.stanford.edu.