Northwestern Surplus Soars To $54.6 Million, With Nearly $1 Billion In Fundraising

EVANSTON, IL — Northwestern University officials reported a $53.6 million operating surplus for 2024, with the institution increasing its net assets to $15.6 billion — an increase of more than $690 million from the previous fiscal year.

According to a financial update from President Michael Schill, Chief Financial Officer Amanda Distel and Provost Kathleen Hagerty, the university's positive operating performance reflected a 1.6 percent margin on $3.3 billion of operating expenses, significantly higher than its $8.6 million surplus in 2023.

The university's lucrative 2024 was fueled by a 4.5 percent return on investment and nearly $1 billion in fundraising, marking the second-biggest year of fundraising in university history.

University officials said they were "actively exploring" ways to slow the increasing cost of being a student at Northwestern. Undergraduate tuition rose by nearly $2,300 to more than $67,000 for the 2024-25 school year. The total cost rises to more than $93,000 when room and board is included.

Meanwhile, Northwestern is facing "expense pressures related to labor contracts, employee benefits, federal legislation, potential changes in federal policy, compliance, research administration, security and litigation," according to Schill, Distel and Hagerty's update.

In the community-wide message, the administrators announced the first comprehensive review of the university's budget model in at least two decades. Its goals include improving financial transparency, aligning resources with university priorities and fostering innovation.

Despite the 534 percent increase in its operating surplus, most of that money is already spoken for.

"Most of the FY 2024 positive performance is retained by schools and units for specific uses and future investments and is not available for general use," they said.

In 2024, Northwestern increased stipends for graduate student worker to $45,000 after agreeing to a union contract and agreed to a $43.5 million settlement to resolve a lawsuit alleging administrators of it and other universities improperly considered financial need in admissions.

The university is also embroiled in lawsuits stemming from its football hazing scandal. They include claims by players who say they were sexually abused and by former head coach Pat Fitzgerald, who says it was unfair to fire him in response to the revelations of abuse during his tenure and wants $130 million because, he alleges, he "has not been able to find alternate employment."

The last six years have seen a significant turnaround to the university's finances. Back in 2018, the administration of former University President Morty Schapiro announced a $90 million shortfall and laid off dozens of staffers. The following year, Moody's downgraded Northwestern's credit rating, citing "ongoing weak operating performance projected for the next several years."

In this year's financial update, the trio of administrators acknowledged uncertainties and "evolving financial pressures" for the coming year.

"We are working proactively to prepare for various potential impacts," they said, "and, if events dictate, we will provide updates to the University community."