Oakland University has a $180 million endowment.
That number, plainly listed on the university’s Fast Facts page, surprises many students who may not even know it exists — let alone how it works.
For many students, that number raises one question: Where does that money actually go?
It is not sitting in a vault, nor is it a pool of cash the university can freely spend.
It is invested, structured and largely untouchable.
“Oakland University’s endowment consists of invested philanthropic gifts and designated university assets structured to provide enduring long-term support for students and the university’s mission,” Michael Westfall, vice president for University Advancement, said.
“When a donor creates an endowed fund, the gift is invested, and a prudent portion of the earnings is distributed quarterly to advance the donor’s specified purpose such as scholarships, faculty positions, research, or programs,” he said.
“The original gift is typically preserved, allowing it to generate support in perpetuity,” Westfall said. “Simply stated, an endowment is a permanent gift that provides ongoing support year after year.”
That means OU does not spend the principal.
Instead, about 4.5% of the endowment’s trailing average market value is distributed annually, preserving long-term growth while generating steady support.
Nearly all of those funds are restricted by donor intent.
“Most endowment funds are legally and contractually restricted to specific donor-defined purposes, such as scholarships, faculty support, or academic programs,” Westfall said.
The most visible impact comes in the form of scholarship subsidies.
Oakland University currently administers over 350 endowed scholarships.
“A significant portion of Oakland University’s philanthropic endowments, approximately 68%, are dedicated to scholarships, reflecting the university’s strong commitment to student access and affordability,” Westfall said.
Those funds directly reduce financial barriers for hundreds of students each year.
Beyond scholarships, endowment earnings support research initiatives, faculty chairs, experiential learning programs, athletics and academic innovation.
Endowment growth comes from both investment performance and philanthropy. One philanthropic example includes the Donna and Walt Young Study Abroad Endowed Scholarship Fund, named for a recent $10 million commitment.
During OU’s comprehensive campaign from 2018 to 2024, 167 new endowments were established. Since then, 64 additional endowed funds have been created, reflecting sustained donor engagement.
Oversight and financial governance are handled through structured policies and board review, outlined by the university’s Treasury Management division.
Westfall said misunderstandings about the nature of endowments as they pertain to Oakland University are common.
“One of the most persistent misconceptions… is the belief that the endowment functions as a large, unrestricted reserve that can be freely spent to address any need,” he said.
“An endowment is not an unrestricted reserve,” Westfall said. “Rather, it is a long-term investment portfolio comprising hundreds of individual funds, most of which are restricted for donor-defined purposes. Only a small percentage of its value is distributed each year.”
If a scholarship is not fully awarded in a given year, unspent earnings are typically carried forward.
Endowments are structured to exist in perpetuity — security with no fixed maturity date.
For students, $180 million does not constitute instant access to funding. It instead pertains to a long-term investment in affordability, academic strength and institutional stability.