In the last decade the size, scope, and financial strength of the Institution have grown tremendously. During this period the annual operating budget has doubled, the total number of donors and the total contributions to the Institution have tripled, and the endowment has grown by more than $200 million. Perhaps most significantly, through the generosity of the Institution’s supporters and prudent management, expendable reserves have grown over the past decade from essentially zero to nearly $30 million.
The Hoover Institution’s fiscal year runs from September 1 through August 31 of the following calendar year, coincident with Stanford University’s fiscal year and academic calendar. The Institution’s base budget covers ongoing operating expenses such as salaries, publications, facilities, forums, and other expenses for the Institution’s scholars and staff and the operations of the library and archives. During the 2006–7 fiscal year (ending August 31, 2007), the Hoover Institution had $34.1 million in base budget expenses, $1.6 million under the annual budget. Funding for the base budget totaled $36.7 million, yielding a $2.6 million base budget surplus. Major sources of funding were $18.2 million from expendable gifts and $16.7 million from the endowment payout. The 2006–7 fiscal year marked the thirteenth straight year that the Institution’s expenses were under its budget and that revenue exceeded the target. In addition to the annual operating expenses, the Institution expended $1.9 million on capital and other projects not considered part of the base budget. Funding received during the year for these special and capital projects totaled $2.7 million.
At the end of the year, the Institution had $9.4 million cash on hand available for the base budget and a further $26.9 million in expendable reserves invested in the endowment. The Institution ended the fiscal year with $9.9 million in cash reserves for special and capital projects.
The market value of Hoover’s endowment as of August 31, 2007, was $437 million, representing an increase of $73 million over the previous fiscal year-end.