Major Categories of Revenue
Tuition and fees net of financial aid for undergraduate and graduate students account for 54% 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 5% 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 revenue budget. (The market value of NYU's total endowment at August 31, 2012 was approximately $2.8 billion, of which, $796 million was for the NYU Langone Medical Center.)
The budget assumes a total return on endowment investments of 6%. Distributions from endowment to support operations are generally calculated as 5% of the endowment’s 12 quarter (three years) average market value, with certain caps on the allowed distribution to further moderate volatility.
Income from commercial real estate represents 3% of the revenue budget.
Sponsored research accounts for 4% of total revenue, and sponsored educational programs account for 8% 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.