Northwestern’s endowment declined to $14.4 billion this year from almost $15 billion last year, according to an email from University President Michael Schill to members of NU’s community Thursday. 

The decrease was credited to rising interest rates and struggling financial markets, according to Schill.

The email, labeled “2023 Annual Financial Update,” included information on the University’s profit margin, net assets and financial goals. 

“Our top priority in this year’s budget is to provide overall compensation that is higher than our historical average,” Schill wrote in the email. 

The endowment is expected to produce 9% more funds in the 2023 budget, based on the University’s projections.

The University also saw a positive margin of $138.7 million this year, but Schill said these funds are not available for immediate use. He said much of the University’s profits have already been allocated within last year’s budget and typically will not move between departments.

“We believe Northwestern is in a position to stake out a greater leadership role in what we do best — creating and spreading knowledge,” Schill said.

Correction: A previous version of this story misstated the endowment’s impact on the budget and the nature of the University’s margin. The Daily regrets the error.

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