The Power of Forever: Increasing Hood’s Endowment

Hood College’s future excellence is rooted in our endowment, our permanent source of strength, to ensure the long-term sustainability of our mission. In fact, the college’s name was changed in 1913 from the Women’s College of Frederick in recognition of Margaret Scholl Hood’s philanthropic gifts and bequests that established our endowment.

Many of our donors that establish a thoughtful planned gift for Hood choose to support the endowment. An endowment comprises contributions from many donors who want to provide a permanent income stream to the college in support of its educational mission. The principal value of these gifts is required to remain intact, while the investment income is to be used for the specific purpose designated by the donor. Endowment funds are generally dedicated for scholarships, faculty positions, and academic support. Unlike the operating budget, these funds are expected to last forever and perpetually support the college and our students.

Endowments provide colleges and universities with the ability to fund their operating costs with sources other than tuition, thus providing long-term financial stability. The U.S. News & World Report annual review of colleges and universities denotes a strong correlation between endowment size and ranking. In short, educational excellence and competitive advantage are directly linked to the amount of money available to a college.

As of December 2019, the college’s endowment was valued at approximately $107,000,000. Over the past ten years, the endowment has returned an average of 7.1% a year—outperforming the established benchmark. However, investment returns are only part of the overall growth story. The endowment has significantly benefited from many gifts and bequests over the years from alumni and friends who believe in Hood’s long tradition of providing an outstanding liberal arts education.

Hood’s endowment per student in 2018 was $63,920. Similar liberal arts colleges in Maryland, on average, have twice the endowment per student and thereby receive greater support for their operating budgets to further student success.

Reach Peers: Gettysburg, Dickenson, Franklin & Marshall
Like Peers: McDaniel, Goucher, Washington
Watch Peers: Le Moyne, Arcadia, St. Bonaventure
Source: NACUBO-TIAA Endowment Study, June 30, 2018

Thanks to the generosity of many donors, the college maintains nearly 400 endowed funds. The vast majority of these funds provide permanent support for scholarships, hence making Hood affordable and accessible to current and future generations of students. Without this critical support, many students would not be able to attend Hood.

To find out more about making a planned gift to Hood, please contact us.