As a world-class university, Northwestern manages a substantial amount of funding across its undergraduate and graduate schools. From faculty salaries and research grants, to campus maintenance and student services, each dollar plays a role in shaping the university experience.
NU manages a total of $15.6 billion in assets, with about $3.3 billion spent in operating expenses in fiscal year 2024, according to the annual budget. These assets represent a $669.9 million increase from fiscal year 2023 to 2024, as a result of philanthropy and alumni contributions — which were the second largest in University history this past year — as well as investment profits.
NU’s investments grew by 4.5%, totaling roughly $14.7 billion in 2024. The University’s investments are overseen by the Investments Committee of the Board of Trustees.
NU, which claims to meet 100% of demonstrated need, distributed $618.3 million in scholarships and fellowships in 2024, with about $250 million allocated to undergraduate student tuition and expenses. Almost $2 billion is kept in the endowment and earmarked for financial aid.
Employee salaries and benefits have been a point of tension between the financial office and faculty. At a Faculty Senate meeting in January, employees raised concerns over adjusting salaries to match rising living costs and inflation.
One aspect of pay is the faculty merit pool, which consists of apportionments of the operating budget that each school’s dean can dole out at their discretion. Many faculty are asking for a blanket pay increase of 2%, which would cost the University about $36 million.
In fiscal year 2024, NU spent $1.83 billion on salaries, wages and benefits. Services, supplies and maintenance cost an additional $1.14 billion. The average salary was $247,100 for professors, $156,500 for associate professors and $130,800 for assistant professors for the 2023-24 school year.
NU offers several post-employment and post-retirement benefits to its faculty and staff. The University contributed $101.7 million to its two retirement investment plans in 2024.
The University also sponsors a healthcare plan, which is also available to retired faculty and staff. Certain tuition reimbursement plans and payment for sick days accumulated at retirement are also available. The total cost of post-employment benefits was $9 million in 2024.
Groundbreaking research is a critical part of maintaining NU’s status as a world-class university. In 2024, the University received $1.05 billion in research grants — up from $593.9 million in fiscal year 2014.
In fiscal year 2024, NU was chosen to lead a National Science Foundation engineering research center for the first time, and received a $26 million grant to fund the project.
The University maintains a total of $1.89 billion in capital and operations assets, meaning that money is held for current and future projects.
Some notable capital projects started during the 2024 fiscal year include renovation of the Donald P. Jacobs Center to create a hub for social sciences and global studies, and the temporary field at Martin Stadium.
Financial planning for the next year is underway. For the 2025-26 academic year, students will see a 3.3% increase in undergraduate tuition. NU plans to adjust for this by allocating $306 million towards undergraduate financial aid, a 22.4% increase from 2024.
Future students can look forward to enjoying the benefits of ongoing capital projects, such as the new Cohen Lawn, Deering Library renovations and Ryan Field.
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