Major Categories of Revenue
Tuition and fees net of financial aid for undergraduate and graduate students account for 56% of total operating revenue.
Student housing and dining contribute 10% of operating revenue, while all other auxiliary operations account for 5% of the total.
Expendable philanthropic contributions account for 4% of total revenue for operations. Gifts to endowment and gifts for construction (i.e., not expendable for operations) are in addition to this total.
Endowment distributions, combined with earnings on short-term investments of operating cash balances, provide 4% of the Washington Square Campus revenue budget. (The market value of NYU's total endowment at August 31, 2011 was approximately $2.7 billion; $1.9 billion of this total was for the Washington Square campus, and $798 million was for the School of Medicine.)
The University's planning assumes total return on endowment investments of 6%. Distributions from endowment to support operations are generally calculated as 5.0% of the endowment’s 12 quarter (three years) average market value. The calculation of the average market value is capped such that the distribution of endowment income may not exceed the previous year's distribution by more than 10%.
Income from commercial real estate represents 3% of the revenue budget.
Sponsored research accounts for 6% of total revenue, while sponsored educational programs account for 5% of the total.
Clinical income from dental patient care provides 2% of operating revenue.
All other sources of revenue total 5%. This category includes many relatively small items such as service payments from the School of Medicine, annual appropriations from the State of New York, and transfers from non-operating funds.