MIT’s endowment rises 11.4% to $27.4 billion in 2025 fiscal year
The Institute’s net assets reach an all-time high despite federal government pressures
Samuel Yuan–The Tech
The Institute reported a strong gain in net assets for the 2025 fiscal year ending on June 30, 2025. According to the Report of the Treasurer released on Oct. 10, MIT’s net assets now stand at $37.7 billion, up from $33.6 billion last year; its endowment grew by 11.4% to $27.4 billion. This year’s numbers, combined with a modest increase in assets from the last fiscal year, propelled the Institute’s highest ever net asset value.
The numbers
The Institute posted a net operating surplus of $425.9 million. Executive Vice President and Treasurer Glen Shor highlighted philanthropy as a "significant contributor to strong growth in revenue.” In fiscal 2025, philanthropic contributions rose 13.2% to nearly $680 million. Shor wrote that the increase was due to positive returns on donor-endowed pooled investments and new gifts and pledges.
Pool A, which is MIT’s primary investment pool, netted a 14.8% return in fiscal 2025, a marked increase from the 8.9% reported in fiscal 2024. Furthermore, Pool A outperformed the S&P 500 over the same time frame.
For MIT faculty and staff, the basic retirement benefit pension plan’s assets increased nearly $700 million to a total of $6.2 billion, and the retiree welfare plan’s assets rose to $1.1 billion.
Meanwhile, operating expenses climbed 7.0%, a result of the Institute’s investments in long-term capital projects and broader cost trends.
Peer institutions performed similarly
On the basis of the endowment return alone, the Institute fared similarly to peer institutions. Harvard reported an 11.9% increase, but reported its first deficit of over $100 million since the pandemic, as it continues negotiations with the Trump administration. Stanford reported a 8.5% increase. The University of Pennsylvania, had a 12.2% increase. At the time of publication, Yale and Princeton have yet to report their returns for fiscal 2025.
Uncertainty trickles down
Although the Institute fared well in fiscal 2025, Shor wrote that this year’s report was clouded with “with accompanying caution and concern.” According to Shor, in fiscal 2027, the “endowment tax” will increase six fold from 1.4% to 8%. Recently, MIT rejected the White House’s compact for federal funding preferences.
Earlier this year, MIT filed lawsuits against the National Institutes of Health (NIH) and the Department of Energy (DOE) for imposing caps on indirect costs, including costs for equipment and building maintenance. Data from MIT’s Office of the Vice President for Research obtained by The Tech showed that in 2024, the NIH and DOE were MIT’s largest and sixth-largest sponsors of funding, respectively. The NIH accounted for 20.8% of sponsored research funding, and the DOE represented 10.6%.
The Institute is continuing to pursue steps towards maintaining financial vigilance. In September, MIT Provost Anantha Chandrakasan and Executive Vice President and Treasurer Glen Shor announced the formation of a “Financial Scenarios Working Group.” In a letter to the MIT community, Provost Chandrakasan also noted the importance of donations for the Institute.
“Like the other institutions affected by this [endowment] tax hike, MIT has turned endowed gifts from generations of alumni and friends into a substantial charitable resource,” Chandrakasan wrote.