Financial Services develops systems, policies and procedures for the efficient and effective management of the College’s financial resources and ensures compliance with Generally Accepted Accounting Principles (GAAP). We are committed to providing a safe and ethical workplace for all members of the Babson community. To learn more, read our Whistleblower Policy. The Procurement Department, while a separate office, is integral to the financial process and is therefore included in this overview.
Babson College FY20 Summary
For fiscal year 2020, Babson College experienced another successful year of financial growth despite the significant challenges presented by the COVID-19 pandemic. The College closed the year with assets totaling more than $872 million.
Beginning in the last quarter of the fiscal year, the global spread of COVID-19 impacted the normal business of the College. Converting to a remote delivery of courses and substantively ceasing on-campus housing and dining operations had measureable impacts in causing both revenue losses and decreased expenditures. However, the College’s considerable care, resilience, entrepreneurial spirit, and success in the management and reallocation of resources supported the realization of the fiscal year net gain from operations of $2.2 million.
A few key performance highlights for the fiscal year included:
- The Generosity of Babson College’s donors and friends continue to increase in support of our mission-raising an annual record of $49.1 million in gifts and pledges, including federal & foundation grants during the year.
- College Endowment Assets ended the year at $490 million, representing a year over year increase of more than $33 million in investment returns.
- As a result, net assets of the College increased by more than $46.5M for the fiscal year total $639 million and contributed to continuing balance sheet strength by growing net assets at an annual growth rate of 7.8% in FY 2020 growth.
Babson College Financial Facts
- The College’s endowment value as of June 30, 2020, was $489.7M vs. $459.4M at June 30, 2019.
- The total net investment return on the endowment for the fiscal year ended June 30, 2020, was 6% as compared with 10% for June 30, 2019.
- Contribution and grant revenues for the fiscal year ended June 30, 2020, were $49.1M, as compared to $37.6M at June 30, 2019.
- Bonds outstanding (both taxable and tax-exempt) as of June 30, 2020, and June 30, 2019, amounted to $170.2M and $177.9M, respectively.
- Total net assets as of June 30, 2020, and June 30, 2019, were $639.8M and $593.2M, respectively.
Standard Mileage Rate
Effective January 1, 2021, the IRS standard mileage rate is 56 cents/mile.
The old rate of 57.5 cents/mile for computing personal car business mileage expense should continue to be used for all miles driven prior to January 1, 2021. When creating an expense report in Workday, these amounts are automically taken into consideration.