Brown Endowment Jumps to More Than $8 Billion, Nearly 12% Increase, School Cuts Local Jobs

Brown Endowment Jumps to More Than $8 Billion, Nearly 12% Increase, School Cuts Local Jobs

Brown University has announced that its endowment has now pierced $8 billion.

The endowment realized an 11.9% return in 2025.

“Brown’s investments generated $853 million in gains, and the endowment provided an all-time high of $352 million for financial aid and student support, scientific research, and other priorities in Fiscal Year 2025,” said the school.

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The endowment’s total market value increased from $7.2 billion to $8 billion.

And while the endowment is growing, the cuts continue as Brown has slashed vacant positions and laid off dozens. In the past year, Brown has eliminated and laid off more than 100 workers. At the same time, Brown President Christine Paxson, who received a contract extension in March of 2025, received a boost to her compensation.

According to the most recent publicly available IRS 990 for the University in 2023, Paxson's compensation is $1,831,198.

 

According to Brown:

Brown’s endowment is a collection of charitable gifts designated by donors to be spent for specific purposes and invested by the University. The funds are invested in a diversified portfolio of assets with the intention that each original gift will grow in size and provide an ongoing income stream to support the specific endowed purpose. 

Among nearly 4,000 individual endowed funds that comprise the Brown endowment are funds that support financial aid to allow students to graduate debt-free; professorships to recruit leading researchers and educators; biomedical laboratories to help develop treatments for diseases ranging from Alzheimer's to ALS to cancer; public health scholarship to address health crises; community engagement initiatives; academic programs to prepare the next generation to address societal challenges; and teaching and research across a wide range of fields.

Each year, the endowment contributes funding to Brown’s operating budget, with the annual payout rate ranging from 4.5% to 5.5% of the average market value. Endowed funds for financial aid are particularly crucial, with the largest share of the endowment’s annual budget contributions (35%) designated for scholarships, fellowships and prizes. Among current Brown undergraduates, 48% of students receive need-based financial aid with an average aid package of $68,458, which covers approximately 71% of the standard cost of attendance.

 

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According to Brown, annualized returns for Brown’s endowment for three, five, 10, and 20 years are 8.6%, 13%, 11.4% and 9.5%, respectively.