Q & A: A College CFO & the Endowment She Manages

Managing a college’s endowment is an immense challenge that requires collaboration with the individuals who manage and steward the funds.

Sue Mannering, the College’s Chief Financial Officer, is keenly focused on the endowment when assembling the institution’s budget on an annual basis. In a recent conversation with the Financial Aid Office, Sue notes the endowment’s vital role in supporting student experiences. Endowment spending supports other key areas at peer institutions, including financial aid funding, faculty and staff salaries, and facilities maintenance activities. A recent report in the Wall Street Journal noted how many institutions are enjoying a banner year with their endowment returns. In fact, the article notes that the median endowment return for colleges and universities this year was 10.9%, as of early data compiled from Cambridge Associates. These returns have a direct impact on the operations at colleges and universities, allowing for increased investment in student experiences, faculty and staff, and facilities. 

Sue has a wealth of experience managing the College’s endowment and budget due to her long-time dedication and experience at the College through her work in the business and finance offices. This knowledge is not frowned upon lightly, as many schools desire a seasoned pro in their CFO suite. Sue notes that the College’s endowment was a meager few million dollars when she began her employment with the institution in 1995. Thirty years later, the College’s endowment is eclipsing the $200 million mark.

The Financial Aid Office recently spoke with Sue about the endowment’s role at the College, how it supports students within a financial aid context, and other fascinating tidbits of knowledge regarding the endowment process. An edited version of the conversation follows. 

Financial Aid Office: What role does an endowment serve at an institution of higher education?

Sue Mannering: As a private non-profit college, our endowment ensures long-term financial sustainability. Although it primarily supports scholarships and operational expenses, the College must abide by the donor’s intent when spending the funding. The principal of the endowment is preserved in perpetuity, while only the investment income—such as interest earned—is used to advance the mission of the College. This structure allows us to honor donor commitments while providing ongoing support for students and institutional priorities.

How long have you been directly involved with the College’s endowment?

My involvement with the College’s endowment spans over 20 years. My role started with smaller tasks like reconciling statements. I am now fully engaged in managing the relationship with the investment managers and working with the Board of Trustees committee that reviews and establishes guidelines and policies for the investment managers.

How does the College’s endowment support scholarships?

The endowment plays a critical role in supporting scholarships for our students. It includes externally donated named endowed scholarships and internal contributions made by the College to expand scholarship funding. With strong investment management, we can grow the endowment over time and use the interest earned to support students financially, ensuring long-term sustainability and access to education.

Why do colleges and universities desire a large endowment?

The endowment’s size reflects the donors’ respect for the College, its mission, and purpose. The larger the endowment, the more support we can give students in scholarships, fund student-related activities, make improvements around campus, and improve academic programs.

What is the current size of the College’s endowment, and how has it grown since you’ve been a staff member at GBC?

The endowment is just over $201 million, which is impressive considering our size. When I started in 1995, it was approximately a few million dollars. It grew to about $16 million in 2004 and about $85 million in 2014. Most of the growth was through taking surpluses and investing them for the future.

How does the College’s endowment support the student experience?

The College’s endowment supports the student experience by providing scholarships, of course, but it also supports funding some of the upgrades you see around campus. Recent upgrades visible to students include the Franta Residence Hall, enhanced athletic offices, the expanded fitness center, spacious event center space, and the stylish dining hall.

Do major gifts to the College increase the endowment’s size?

Major gifts are essential to the growth and impact of the College’s endowment. As the saying goes, “the more money you have, the more money you make.” A larger endowment generates greater investment earnings, directly increasing our capacity to support scholarships, enhance academic programs, and invest in the College community. Every contribution—large or small—helps build a stronger financial foundation for the future.

What do you enjoy the most about the endowment process as the College’s CFO?

The College is in a strong financial position and has a large endowment relative to our size, providing significant advantages. Years of disciplined savings, combined with interest and dividends over the years, have positioned us to be able to invest in the student experience. It’s our way of giving back to the GBC Community. Historically, we maintained a conservative approach to spending and continue to do so, but our focus has become more student experience driven. Seeing our students utilize the spaces and resources made possible through thoughtful financial stewardship is rewarding.

Thank you, Sue.