New Study Finds That Liberty’s Endowment Has Spiked

Liberty University continues to bolster its financial stability for the 2017 fiscal year, as its endowment spiked by 19.3 percent from the 2016 fiscal year, according to the 2017 National Association of College and University Business Officers Endowment Study.

The university’s endowment increased from $1.1 billion to just under $1.3 billion in financial assets, according to the NACUBO report based on 809 colleges and universities in the U.S. The News & Advance reported that the university’s increase boasted the highest percentage increase of the 32 Virginia schools that participated in the study and was one of the highest in the country.

“(Endowment growth) is a good measure of financial health because it means that the institution is planning for the long term,” Executive Vice President of Finance Robert Ritz said in an email. “Growth in the endowment, in part, means that the university is working toward a strategy where endowment earnings could help pay for the ongoing expenses of the university.”

Additionally, Ritz said endowment money can be used if the university ever struggles financially. However, he added that Liberty is not currently facing financial struggles.

The school’s endowment, instead, helps pay for institutional scholarships as well as on-campus amenities.

“Other portions of the endowment earnings, over time, help to pay for other university expenses and expenses related to the amazing facilities that Liberty now has,” Ritz said. “Our current residential students, for example, are now going to graduate from a university with top-notch facilities.”

Another benefit of having a large endowment is keeping university facilities up-to-date. Though current residential students have access to state-of-the-art facilities, Ritz explained that the endowment will keep the school’s facilities advanced and functional for the generations to come.

The university’s financial health also benefits faculty and staff, he said.

“For faculty and staff, I believe there is another benefit … Liberty is financially healthy and building long-term strength,” Ritz said. “If I am an administrator who would like to work for many years at Liberty, or if I am a faculty member who would like to build my career and perhaps even retire from Liberty, knowing that the university will be strong 10, 20 or even 30 years from now should mean something to me.”

The News & Advance also reported that the 2017 NACUBO Endowment Study was Liberty’s first year to participate, and the school’s monetary endowment ranked 74th of 809 schools that participated in the report.

Ritz cited Liberty University Online as one reason for the young school having a large endowment, stating that the program provides a Liberty education to students who cannot travel to Lynchburg and become residential students. He also said that the school works diligently to keep operating expenses at bay.

“In addition to (Liberty Online), I have seen a non-stop effort in all areas of the university to keep our day-to-day expenses low,” Ritz said. “When we are careful with our expenses, that makes us financially leaner. That helps the university save money and provides a way to use the saved money for a longer-term plan.”

Ritz transitioned into his position as the executive vice president of finance at Liberty last month and said that he is almost constantly in meetings about the school’s finances and budget.

“Now that I am seeing both the big picture and so many of the details behind the scenes, I am even more proud of what Liberty University has accomplished, especially in the last decade,” Ritz said.