The Colby Fund

The Colby Fund comprises annual contributions, generally gifts of cash (checks and charges) or securities, from alumni, parents, and friends of the College. The essential element is that the gifts are unrestricted and support Colby's current operations. All unrestricted gifts to the College are used in the fiscal year in which they are received, at Colby's discretion, to help bridge the gap between what it actually costs to run the College and what the College collects in tuition and fees and receives in operating support from its endowment.

Colby depends on tuition and fees to support roughly 75 percent of its operating budget. To lessen its dependence on tuition, the College hopes to increase both annual giving and the endowment. Colby's endowment supports the operating budget by contributing a percentage of its value each year. Currently, Colby annually expends four percent of a rolling five-year average of its total endowment in support of current operations. The remainder of annual earnings in excess of the portion turned over to the operating budget is reinvested. With a four-percent endowment yield being turned over to operations each year, a $4.0 million Colby Fund essentially replaces the income from $100 million of endowment.

Colby Fund participation has been a very important emphasis in the last several years. High participation, particularly over 50 percent, is looked at favorably by external sources. First, foundations often use it when awarding highly coveted grants, which are critical to the College's financial operations. Second, it is used frequently as a barometer of alumni satisfaction by college review publications when ranking institutions.

In fiscal 2008, the Colby Fund posted a 50.1 percent participation rate from alumni.

When compared to the other top national liberal arts colleges, Colby certainly ranks in the top tier in this category. However, there is room for considerable improvement in order to match or exceed some of our peer institutions.

2008 alumni participation rates at similar institutions:

Alumni Giving Revenues in Millions:

Operating costs, like those at all top-level colleges, increase each year, reflecting Colby's commitment to its students and faculty. It is necessary for revenues generated by Colby Fund gifts to increase each year in order to keep pace with the budgetary needs of the College. Colby has operated with balanced budgets for 26 years in a row and is acutely aware of the burden that the cost of private higher education places upon students and their families. Maintaining the College's quality, however, is important to ensure the very best possible education for today's students and to ensure the integrity of the Colby degree for its alumni. We look to alumni to help meet these educational needs through the Colby Fund.