Under Yale’s policies, budget revenue from the endowment in any given year is calculated based on spending from two years prior. Spending from the endowment in FY18 totaled $1.281 billion, of which 76% was designated for a specific purpose.
Yale’s endowment accounts for the largest share (34%) of our $4.278 billion budget for the current fiscal year. Clinical revenues in the School of Medicine provide 27%, and income from grants and contracts contributes 19%.
Benefits are a significant portion of faculty and staff members’ overall compensation. Health benefits for active employees and retirement-related benefits for former employees account for 89.5% of fringe benefit costs.
Expenses in this year’s operating budget, net of internal revenue, amount to $4.2 billion; expenses excluding internal revenue are $5.247 billion, as depicted here. Salaries and benefits account for 51% of our total operating costs. (See the following chart for a detailed view of benefit expenses.)
Each of Yale’s schools relies on a different combination of funding sources. In the School of Medicine, just 7% of the budget comes from endowment; in the School of Music, that figure is 90%. Overall, revenue from tuition covers just 10% of Yale’s costs each year.