Two internship positions from the accounting and investment departments on Ball State University's campus weren't replaced this semester because the funding to staff the students isn't available, David Bahlmann, president of the Ball State University Foundation, said.
Ball State University endowment funds are down by about $35 million, or 20 percent, as of December 2008.
Endowments are monetary gifts to a university, which are invested to maintain the gift value. The profits from investing are used toward university projects and scholarships, among other things.
Bahlmann said budget cuts have been made to adjust to the new allowance. He estimated that Ball State has between 800 and 900 endowments, amounting to about $199 million in total assets.
Endowment-based scholarship money is being reduced, and less unrestricted spending money will be available for university projects, he said.
Bahlmann said during the same period of time, the stock market was down by almost 40 percent. Considering this, Bahlmann said, he feels Ball State did very well.
A survey from National Association of College and University Business Officers reported that five Indiana schools had an increase in their endowment at the same time 18 schools had decreases in investments. The five schools were University of Notre Dame, Valparaiso University, St. Mary's College, Indiana Wesleyan University and Anderson University.
Tom Heck, chief investment officer for the Ball State Foundation, said this is likely because of contributions that overcompensated for losses in returns. Heck said he would be surprised if any school grew as a direct result of the market.
As of July 2008, Indiana University and Foundation reported an endowment total of $1.55 billion, with a decrease of 0.7 percent.
At the same time, Purdue University was listed with $1.74 billion in endowment funds and a decrease of 2.9 percent.
In the same report, Ball State University Foundation had a $189.7 million endowment, with a decrease of 4.2 percent. Heck said this number actually represents a 1.2 percent decrease and an additional 3 percent in spending.
For this reason, these numbers could be skewed by budget spending and contributions from donors, Bahlmann said.
The NACUBO survey ranked Ball State as 259th in national endowment assets.
In 2007, Foundation and Endowment Money Management Magazine named Ball State the Small Nonprofit of the Year for its leadership in investment, he added.
Bahlmann said the foundation has a "very, very outstanding team of investment officers, advisers and staff" who are taking caution with upcoming budgeting and focusing on maximum sustainable support for the university.
"Sure, we're optimistic," Bahlmann said, "but we're also cautious. We're perpetually looking to the future."
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