Rice University’s $608 Million Investment Surge Tops Tuition Revenue as $8.39 Billion Endowment Funds 47% of Operating Budget
By Data Team | Published November 5, 2026
Rice University’s total assets reached $11.18 billion in fiscal year 2025, anchored by an $8.39 billion endowment whose $644.9 million direct payout covers 47.1% of the university's $1.37 billion Form 990 operating budget (48.5% or $664.6 million including endowment administrative expenses), according to its latest IRS filing. That capital base enables Rice to spend $109,674 per student across all direct program services ($987.1 million across 9,000 degree-seeking students)—including $81,927 per student on regular session instruction, departmental research, and student aid ($737.3 million)—while total enterprise expenditure reaches $152,196 per student ($1.37 billion).
Unlike peers that rely on clinical hospital operations or massive federal laboratory contracts, Rice operates a capital-intensive academic model where endowment distributions carry nearly half of total institutional costs. Gross tuition, fees, and auxiliary housing generate $586.6 million ($65,173 per student), but Rice returns $297.7 million in direct financial aid to domestic students—leaving net student revenues to fund slightly over one-fifth of total expenses while realized investment income ($608.5 million, up 37.9% YoY) and government and private grants ($349.5 million) power institutional growth.
This endowment-driven subsidy directly underwrites The Rice Investment financial aid initiative. On Form 990 Schedule I, Rice awarded $297.7 million in scholarships and fellowships across 5,550 domestic students (61.7% of its 9,000 degree-seeking enrollment), supporting approximately 70% of all undergraduates and nearly all doctoral candidates.
Institutional & Governance Profile
Operating under its formal corporate name, William Marsh Rice University (EIN 74-1109620), Rice is domiciled in Houston, Texas, on a 300-acre tree-lined campus adjacent to the Houston Museum District and the Texas Medical Center. Chartered in 1891 and formed as a corporate entity in 1908, the university integrates a residential college undergraduate system with over 40 interdisciplinary research centers, the Baker Institute for Public Policy, and the Rice Management Company.
Institutional Scale and Board Structure
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Founding & Workforce Scale: Formed in 1908, Rice issued 9,622 Form W-2s in calendar year 2024, filed 11,294 Form 1096 vendor returns, and engaged 2,847 alumni and community volunteers.
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Academic & Faculty Footprint: An 879-member faculty (683 full-time and 196 part-time, with 99% of full-time faculty holding terminal degrees) maintains a 6-to-1 undergraduate student-to-faculty ratio across approximately 9,000 degree-seeking students (4,800 undergraduates and 4,200 graduate students) and 13,000 lifelong and online learners.
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Executive Leadership: President Reginald DesRoches leads the university alongside Provost and Executive VP for Academic Affairs Amy Dittmar, Chief Investment Officer Allison Thacker, Executive VP for Finance and Administration Kelly Fox, Executive VP for Research Ramesh Ramamoorthy, and Senior Associate VP and CFO Katrina Spencer.
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Governing Board (Schedule O): Chaired by Robert T. Ladd, the Board of Trustees comprises 26 voting members, 24 of whom are independent. The Audit Committee and Compensation and Organizational Development (CORD) Committee review the Form 990 prior to full board distribution, and all trustees and officers complete mandatory annual conflict-of-interest questionnaires.
Top-Line Financials
During FY25 (covering July 1, 2024 through June 30, 2025), Rice generated $3.43 billion in gross receipts and $1.64 billion in total net revenue. Total assets expanded 5.0% to $11.18 billion while net assets rose 5.6% to $9.39 billion, weighted toward donor-restricted funds (57.3%) alongside unrestricted institutional reserves (42.7%).
Balance Sheet Strength
- Total Assets $11,183,685,000 (+5.0%)
- Total Liabilities $1,788,692,000 (+1.8%)
- Total Net Assets $9,394,993,000 (+5.6%)
- Donor-Restricted Net Assets $5,384,821,000 (57.3% of Total Net Assets)
- Unrestricted Net Assets $4,010,172,000 (42.7% of Total Net Assets)
Operating Performance
- Total Revenue $1,635,701,788 (+14.9%)
- Total Expenses $1,369,765,124 (+7.6%)
- Operating Surplus $265,936,664 (+77.0%)
- Unrealized Losses (Excluded) -$212,976,212
Note: The $265.9 million reported operating surplus reflects Form 990 realized accounting parameters; combining this surplus with -$213.0 million in net unrealized investment adjustments and +$445.7 million in net asset changes from consolidated subsidiary corporations (Part XI, Lines 5 and 9) accounts for the full $498.6 million expansion in Rice's FY25 net assets.
Revenue Breakdown
Three of Rice's four primary revenue streams expanded in FY25, led by a 37.9% surge in realized investment income to $608.5 million—driven by $520.0 million in net capital gains from $2.31 billion in gross asset sales. Program service revenue rose 7.6% to $637.4 million, anchored by $520.6 million in gross student tuition and fees and $65.9 million in residential college and auxiliary operations. Contributions and grants grew 6.3% to $349.5 million ($195.8 million in government research grants and $153.7 million in private gifts), while other revenue declined 33.9% to $40.3 million, reflecting direct oil and gas royalties ($19.0 million) and investment property rents ($17.3 million).
Primary Revenue Streams
FY25 Revenue Distribution
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Program Service Revenue +7.6% YoY$637,395,127 (39.0%)
- Tuition & Fees (Undergraduate, Graduate & Online Programs) $520,610,000
- Auxiliary Operations (Residential Colleges, Dining & Housing) $65,947,000
- Department Sales & Institutional Services $31,371,249
- Sponsored Research Contracts $19,466,878
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Investment Income +37.9% YoY$608,457,896 (37.2%)
- Realized Net Capital Gains ($2.31B Gross Sales less $1.79B Basis) $520,028,788
- Dividends, Interest & Other Investment Income ($67.1M UBI) $88,429,108
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Contributions & Grants +6.3% YoY$349,500,594 (21.4%)
- Government Research & Sponsored Grants $195,767,000
- Private Philanthropy & Fundraising Events ($1.17M Events) $153,733,594
- Noncash Gifts Included Above (118 Stock Gifts, $998K Mineral Rights, Art) $30,921,683
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Other Revenue -33.9% YoY$40,348,171 (2.5%)
- Direct Oil & Gas Working Interests and Royalties $18,966,259
- Net Rental Income (Investment Properties $14.19M & Real Estate $3.16M) $17,349,633
- Intellectual Property Royalties ($6.28M) & Net Event/Misc Adjustments (-$2.25M) $4,032,279
Endowment Performance and Asset Allocation
Rice Management Company oversees the university's $8.39 billion endowment inside a broader $9.08 billion balance sheet investment portfolio (plus $64.6 million in temporary cash investments). Closely held private equity, venture capital, and alternative partnerships ($4.82 billion) combine with direct real estate, timber, and energy holdings ($1.06 billion) to represent 64.7% of total invested securities, complemented by $3.01 billion in publicly traded equities and fixed income (33.1%).
To execute its global alternative strategy, Rice holds $2.56 billion in foreign-domiciled investment vehicles reported on Schedule F—including $2.40 billion in Central America and the Caribbean, $137.3 million in Europe, and $17.8 million in Canada and Mexico—and generates $66.7 million in gross unrelated business revenue ($11.8 million net taxable income on Form 990-T). Because Rice holds $932,215 in endowment assets per student across 9,000 students, it is subject to the 1.4% federal IRC Section 4968 endowment excise tax, recording $8.1 million in excise tax associated with current-period realized gains in FY25 (up from $3.4 million in FY24).
Portfolio Performance & Asset Allocation ($9.08B Invested Securities / $8.39B Endowment Pool)
Part X & Schedule D, Part VII Allocation
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Endowment Balance (EOY): $8,389,936,000 (+5.8% YoY), representing $932,215 per enrolled student across 9,000 degree-seeking students.
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Net Investment Gains: $1,069,847,000 in endowment investment earnings (+37.9% YoY from $775.9M in FY24).
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Alternative & Offshore Capital: 66.9% of balance sheet investments sit in closely held partnerships, real estate, timber, and mineral assets, with $2.40B domiciled in Central American and Caribbean vehicles.
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Total Payout & Budget Coverage: $644,925,610 in direct payouts ($387.6M to academic programs and facilities; $257.4M to student scholarships), funding 47.1% of Form 990 total expenses (48.5% or $664.6M including $19.7M in endowment management fees).
Detailed Asset Mix (Balance Sheet Investment Holdings)
5-Year Endowment History
Schedule D, Part V traces the five-year expansion of Rice’s endowment from a $6.17 billion opening balance in FY21 to $8.39 billion at the close of FY25. Over that five-year window, the endowment received $297.4 million in contributions and transfers alongside $4.20 billion in net investment earnings—anchored by a $2.16 billion post-pandemic surge in FY21 and $1.07 billion in FY25 gains. Simultaneously, the endowment distributed $2.20 billion toward student scholarships ($1.11 billion) and academic programs and campus facilities ($1.08 billion), plus $82.4 million in investment management and administrative expenses. Under board policy, Rice targets an annual spending rate of 4.5% to 5.5% (within a 4.0% to 6.5% band) of the trailing three-year average market value. At year-end FY25, the endowment comprised 40.00% board-designated quasi-endowment, 37.17% term endowment, and 22.83% permanent endowment.
FY25 Endowment Waterfall (Schedule D, Part V)
Visualizing the bridge from Beginning of Year (1a) to End of Year (1g) in billions.
5-Year Historical Endowment Balances (Line 1g)
End of year balance progression in billions (FY21 - FY25).
| IRS Line Item | FY25 (Current) | FY24 (Prior) | FY23 (2 Yrs Back) | FY22 (3 Yrs Back) | FY21 (4 Yrs Back) |
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| 1a. Beginning of year | $7,931,811,000 | $7,700,629,000 | $7,844,941,000 | $8,080,292,000 | $6,166,323,000 |
| 1b. Contributions | $52,902,000 | $49,566,000 | $66,014,000 | $78,362,000 | $50,598,000 |
| 1c. Net investment earnings | $1,069,847,000 | $775,899,000 | $184,442,739 | $13,839,000 | $2,159,989,000 |
| 1d. Grants or scholarships | ($257,350,619) | ($240,208,108) | ($220,149,781) | ($209,870,916) | ($183,252,814) |
| 1e. Other expenditures | ($387,574,991) | ($342,518,331) | ($154,683,219) | ($101,183,195) | ($98,677,375) |
| 1f. Administrative expenses | ($19,698,390) | ($11,556,561) | ($19,935,739) | ($16,497,889) | ($14,687,811) |
| 1g. End of year balance | $8,389,936,000 | $7,931,811,000 | $7,700,629,000 | $7,844,941,000 | $8,080,292,000 |
Per-Student Spending and True Cost
Evaluating per-student expenditure through direct program services highlights the scale of Rice's educational subsidy. Across its 9,000 degree-seeking students (4,800 undergraduates and 4,200 graduate students), Rice expends $987,065,032 in total direct program services (Part III, Line 4e)—equating to $109,674 per student. Within that program total, regular session departmental instruction, research, and student financial aid (Part III, Line 4a) account for $737,343,032, or $81,927 per student ($48,412 net per student excluding $301.6 million in student and research grants).
By comparison, gross student tuition and fees ($520,610,000, or $57,846 per student) combined with auxiliary residential college and dining revenues ($65,947,000, or $7,327 per student) generate $586,557,000 ($65,173 per student)—covering 59.4% of total direct program service costs and 79.5% of regular session instructional spend before financial aid discounts. Once Rice's $297.7 million in domestic student scholarships is deducted, net student charges cover just 29.3% of total program service expenditure, leaving an $80,463 per-student annual gap bridged by Rice's $644.9 million endowment payout and sponsored research grants. Including management overhead ($354.3 million) and fundraising ($28.4 million), overall institutional expenditure reaches $1,369,765,124, or $152,196 per student.
Operations vs. Revenue
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Total Direct Program Service Spend (Part III, Line 4e): $987,065,032 across 9,000 undergraduate and graduate students ($109,674 per student across instruction, sponsored scientific research, student aid, and libraries).
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Regular Session Academic Program Spend (Part III, Line 4a) & Total Spend (Part IX): $737,343,032 in departmental instruction, research, and student aid ($81,927 gross per student; $48,412 net excluding $301.6M in grants) and $1,369,765,124 in overall institutional expenditure ($152,196 per student).
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Tuition & Auxiliary Revenue: $586,557,000 combined ($520.6M tuition and fees plus $65.9M auxiliary operations, or $65,173 gross per student), covering 59.4% of total direct program services before financial aid discounts ($288.9M or $32,098 net per student after $297.7M in student aid).
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Basic Scientific Research & Training (Part III, Line 4b): $215,145,000 ($23,905 per student) across more than 40 interdisciplinary centers, including the Bioscience Research Collaborative, Brockman Hall for Physics, and the Baker Institute for Public Policy.
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University Libraries, Campus Art & Global Programs (Line 4c, Schedule D & F): $34,577,000 ($3,842 per student) for Fondren Library, Brown Fine Arts Library, and the Whitaker Business Information Center (over 3.03M print volumes and 72,000 journals), alongside $15.6M in capitalized public art and outdoor sculpture (Schedule D) and $7.9M in international research, Paris architecture, and global health programs (Schedule F).
Financial Aid: How Rice Deploys $298M in Student Support
Rice practices need-blind admissions for domestic undergraduate applicants and meets 100% of demonstrated financial need without loans through The Rice Investment, supplemented by merit awards and graduate fellowships. In FY25, Rice disbursed $301,634,224 in total grants and assistance (up 8.2% YoY from $278.7 million in FY24), funded heavily by $257.4 million in dedicated endowment scholarship payouts (Schedule D, Part V, Line 1d).
On Form 990 Schedule I (Part III), Rice reports $297,672,443 in financial assistance to 5,550 domestic students—representing 61.7% of its 9,000-student body (65.3% against the 8,500 baseline)—averaging $53,635 per aided recipient. That total comprises $262,129,443 in institutional scholarships applied directly to student tuition, fee, and room-and-board accounts across 5,550 students and $35,543,000 paid out directly in cash stipends and fellowships to 983 students. Per Part III (Line 1), approximately 70% of all undergraduates and nearly all doctoral students receive financial aid.
Internal Student Support (Schedule I & D)
- Aided Student Share (Schedule I) 61.7% (5,550 students)
- Undergraduate / Doctoral Aid Rate ~70% Undergrad / Nearly All PhD
- Scholarships Applied to Accounts $262,129,443 (5,550 recipients)
- Direct Stipends Paid to Students $35,543,000 (983 recipients)
- Total Domestic Student Aid $297,672,443 ($53,635 avg.)
Endowment Aid Coverage & Global Grants
- Endowment Scholarship Payout ($257,350,619) Endowment distributions cover 86.5% of Rice's $297.7M domestic student aid budget, insulating financial aid commitments from annual tuition fluctuations.
- Foreign Public Health Subawards ($3,961,781) Disbursed via wire transfer across 16 foreign charitable organizations on Schedule F ($3.29M across 14 recipients in Sub-Saharan Africa and $667K across 2 recipients in Europe) to advance neonatal and maternal public health technologies.
Executive and Investment Team Compensation
Rice’s Schedule J disclosures reflect competitive market benchmarks across institutional endowment management, senior academic leadership, business school faculty, and American Athletic Conference intercollegiate athletics. The university’s highest-compensated employee in FY25 was Chief Investment Officer and Treasurer Allison Thacker ($2,975,212, including $1,915,553 in base salary and $927,563 in performance bonus), followed by President Reginald DesRoches ($2,074,566, including $1,087,459 base salary, $500,000 bonus, and $266,954 in nontaxable benefits including university-required residence), Investment Manager John Lawrence ($1,172,708), Associate Professor Brent Smith ($1,171,411), and Investment Manager Craig Beech ($1,087,335).
Rounding out the nine employees exceeding $1 million in total compensation were Provost Amy Dittmar ($1,084,857), VP for Development & Alumni Relations Stephen Bayer ($1,076,208), former Head Football Coach Michael Bloomgren ($1,072,024, which includes a $250,000 severance payment noted in Schedule J, Part III), and Executive VP for Finance and Administration Kelly Fox ($1,010,304). Because Rice pays over $1 million in remuneration to covered executives, the university is subject to the federal IRC Section 4960 21% excise tax on excess executive compensation (Form 990, Part V, Line 15).
Payroll Scale and Compensation Governance
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Total Institutional Payroll: Rice expended $639,129,566 in total salaries, wages, pensions, and employee benefits in FY25 (+10.6% YoY, representing 46.7% of all university expenses) across 9,622 W-2 employees, with 1,212 staff members earning over $100,000.
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CORD Committee Governance (Schedule J & O): The Compensation and Organizational Development (CORD) Committee of the Board of Trustees reviews and approves executive and investment compensation using Willis Towers Watson university executive surveys and peer endowment benchmarks, documenting deliberations contemporaneously under IRC Section 4958 standards.
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Supplemental Retirement, Residence & Interested-Party Disclosures (Schedule J & L): Twelve executives participated in supplemental nonqualified retirement plans (including $200,000 current-year awards for Reginald DesRoches and Kenneth Jett, and $169,914 in vested payouts for Business Dean Peter Rodriguez). The President is required to occupy university-owned housing as a condition of employment and receives chauffeured transport off campus. On Schedule L, Rice reports a board-approved $100,000 personal loan to Natural Sciences Dean Thomas Killian ($42,423 balance due), $524,749 in faculty compensation to Robert Dittmar (spouse of Provost Amy Dittmar), and a $24,259,847 investment partnership transaction involving Trustee Brian Patterson.
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Form 990, Schedule J, Part II: Compensation Breakdown — All 38 Listed Individuals (FY25)
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| Name & Title (A) | Base Comp (B-i) | Bonus (B-ii) | Other (B-iii) | Retirement & Deferred (C) | Nontaxable Benefits (D) | Total (E) | Prior Deferred (F) |
| Allison ThackerChief Investment Officer, Treasurer, Asst. Sec. | $1,915,553 | $927,563 | $42,500 | $43,320 | $46,276 | $2,975,212 | $0 |
| Reginald DesRochesPresident | $1,087,459 | $500,000 | $53,500 | $166,653 | $266,954 | $2,074,566 | $0 |
| John LawrenceInvestment Manager | $528,364 | $538,175 | $30,500 | $32,970 | $42,699 | $1,172,708 | $0 |
| Brent SmithAssociate Professor | $1,065,946 | $0 | $30,500 | $43,320 | $31,645 | $1,171,411 | $0 |
| Craig BeechInvestment Manager | $467,094 | $481,950 | $52,400 | $43,320 | $42,571 | $1,087,335 | $0 |
| Amy DittmarProvost & EVP for Academic Affairs | $750,305 | $100,000 | $30,500 | $176,654 | $27,398 | $1,084,857 | $0 |
| Stephen BayerVP for Development & Alumni Relations | $829,101 | $75,000 | $53,500 | $72,487 | $46,120 | $1,076,208 | $0 |
| Michael BloomgrenFootball Coach | $956,319 | $10,000 | $42,500 | $32,970 | $30,235 | $1,072,024 | $0 |
| Kelly FoxEVP for Finance & Admin., Assoc. Treasurer | $643,153 | $120,000 | $53,500 | $151,654 | $41,997 | $1,010,304 | $0 |
| Ramesh RamamoorthyExecutive VP for Research | $621,902 | $95,000 | $53,500 | $176,654 | $36,207 | $983,263 | $0 |
| Peter RodriguezDean, Jones Graduate School of Business | $830,814 | $25,000 | $21,600 | $43,320 | $33,426 | $954,160 | $62,500 |
| Thomas McClellandDirector of Athletics | $621,895 | $120,000 | $23,000 | $49,220 | $42,951 | $857,066 | $0 |
| Bernard BanksAssociate Professor | $725,857 | $0 | $53,500 | $39,533 | $3,147 | $822,037 | $0 |
| Cindy MeltonAssociate VP, Investments & Assoc. Treasurer | $347,520 | $173,644 | $52,988 | $43,320 | $45,363 | $662,835 | $0 |
| Omar SyedVice President, General Counsel & Secretary | $489,615 | $50,000 | $22,575 | $72,970 | $2,281 | $637,441 | $0 |
| Luay NakhlehDean, George R. Brown School of Engineering | $548,674 | $20,000 | $23,000 | $37,925 | $1,318 | $630,917 | $0 |
| Melinda Spaulding ChevalierVice President of Public Affairs | $445,014 | $60,000 | $23,000 | $62,137 | $33,068 | $623,219 | $0 |
| David LeebronFormer President | $433,745 | $0 | $50,000 | $43,320 | $32,936 | $560,001 | $0 |
| Robert YekovichFormer Dean | $458,391 | $0 | $40,653 | $43,320 | $14,937 | $557,301 | $0 |
| Thomas KillianDean, Wiess School of Natural Sciences | $420,418 | $20,000 | $30,500 | $43,320 | $28,052 | $542,290 | $0 |
| Caroline LevanderVP for Global | $310,584 | $40,000 | $50,000 | $109,987 | $22,101 | $532,672 | $0 |
| Kenneth JettVP Facilities & Cap. Const. / Pres. Rice Real Estate | $390,380 | $50,000 | $13,750 | $44,792 | $24,327 | $523,249 | $0 |
| Katrina SpencerSr. Associate VP, CFO, Treasurer & Asst. Sec. | $387,037 | $40,000 | $45,800 | $32,970 | $429 | $506,236 | $0 |
| Brian PadleyVP for Information Technology & CIO | $392,561 | $0 | $30,500 | $43,320 | $21,368 | $487,749 | $0 |
| Peter RosskyFormer Dean | $364,846 | $0 | $44,500 | $43,320 | $32,992 | $485,658 | $0 |
| Joseph DavidsonSr. Associate General Counsel & Asst. Sec. | $329,604 | $67,557 | $0 | $43,320 | $34,163 | $474,644 | $0 |
| Yvonne RomeroDean for Admissions and Financial Aid | $304,082 | $30,000 | $44,500 | $43,320 | $21,037 | $442,939 | $0 |
| Seiichi MatsudaFormer Interim Provost | $357,059 | $0 | $30,500 | $43,320 | $10,960 | $441,839 | $0 |
| Paul CherukuriVice President for Innovation | $218,842 | $42,500 | $30,500 | $103,740 | $32,093 | $427,675 | $0 |
| Ronica SmuckerFormer Officer | $309,573 | $0 | $26,871 | $43,320 | $28,578 | $408,342 | $0 |
| Bradley FralicAssociate VP Finance, Controller, Assoc. Treasurer | $295,511 | $10,000 | $0 | $39,331 | $26,690 | $371,532 | $0 |
| Veta Byrd-PerezSr. Associate General Counsel & Asst. Sec. | $237,415 | $6,000 | $30,500 | $35,211 | $43,593 | $352,719 | $0 |
| Claire NelsonAssociate Treasurer & Assistant Secretary | $244,090 | $3,000 | $4,904 | $31,770 | $42,571 | $326,335 | $0 |
| Jeffrey BarnesFormer Officer | $221,480 | $6,000 | $23,000 | $21,858 | $10,416 | $282,754 | $0 |
| Jeffrey FalkFormer Officer | $224,755 | $0 | $11,967 | $20,290 | $11,100 | $268,112 | $0 |
| Diana X GarciaDirector of Treasury & Finance, Assoc. Treasurer | $188,243 | $0 | $8,831 | $12,291 | $39,070 | $248,435 | $0 |
| Eno-Obong OregbesanFormer Officer | $177,465 | $3,500 | $0 | $15,037 | $33,007 | $229,009 | $0 |
| Larry PerezFormer Officer | $158,261 | $0 | $10,167 | $19,062 | $28,467 | $215,957 | $0 |
Facilities, Debt, and Municipal Relations
Rice’s 300-acre main campus in central Houston sits alongside a multi-entity commercial real estate and innovation footprint overseen by President of Facilities, Capital Construction, and Rice Real Estate Kenneth Jett. Rather than liquidating endowment principal to fund campus construction, Rice pairs philanthropic gifts with tax-exempt municipal bonds issued through the City of Houston Higher Education Finance Corporation (Schedule K) and institutional notes.
On Form 990 Schedule I (Part II) and Part IX (Line 1), Rice reports $0 in standalone voluntary PILOT grants to domestic governments. Instead, Rice’s municipal relationship with the City of Houston and Harris County centers on commercial real estate development—anchored by the Ion District innovation hub ($60.0 million in disregarded LLC assets on Schedule R) and four 501(c)(25) real estate holding corporations—alongside $119.4 million paid to its top five Houston-area construction contractors and charter-mandated public access to Fondren Library.
Capital Debt & Municipal Engagement
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Physical Plant & Campus Operations: Rice holds $3.07 billion in gross land, buildings, and equipment ($1.70 billion net book value after $1.37 billion in accumulated depreciation, up 9.1% YoY), recording $21.6 million in annual occupancy costs, $82.3 million in depreciation, and $8.8 million in non-capitalized project costs.
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Tax-Exempt Bonds & Institutional Debt (Schedule K): The university carries $330.2 million in tax-exempt bond liabilities issued through the City of Houston Higher Education Finance Corporation—spanning Series 2010 ($139.9M issue, $111.2M retired), Series 2024 ($351.4M issue price / $364.9M total proceeds for capital projects, with $151.0M in unspent proceeds), and $19.2 million in Series A commercial paper—plus $1.14 billion in third-party notes and loans, paying $45.4 million in FY25 interest expense.
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Schedule I Town-Gown PILOT Payments & Municipal Relations: While Rice recorded $0 in Schedule I cash grants to domestic governments, the university drives municipal economic activity through Ion District Management Services LLC ($60.0M in assets revitalizing Midtown Houston), commercial investment properties generating $17.3M in net rents, $19.0M in oil and gas holdings, charter-mandated public access to the 3.03M-volume Fondren Library, and $411,923 in federal, state, and local public affairs engagement (Schedule C).
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Top Construction Contractors: All five of Rice's highest-compensated independent contractors (among 151 contractors paid over $100,000) were Houston-area construction builders: Austin Industries Inc. ($40.10M), Anslow Bryant Construction Ltd. ($23.92M), Skanska & Bell Builders A Joint Venture ($21.53M), David E. Harvey Builders Inc. ($19.38M), and Bell Builders LP ($14.50M).
Editorial Note
All financial figures in this report derive from William Marsh Rice University’s FY25 IRS Form 990 (covering July 1, 2024 through June 30, 2025 across approximately 9,000 degree-seeking students—4,800 undergraduates and 4,200 graduate students) and have been reviewed by the data team.
While Rice expends $109,674 per student across all direct program services ($81,927 per student on regular session instruction, departmental research, and student aid, and $152,196 per student in total enterprise expenditure), Chicardgo School does not imply that financial expenditure mathematically causes specific postgraduate earnings or academic outcomes. Rather, these capital resources fund the 6-to-1 undergraduate faculty ratio, loan-free financial aid packages, and research infrastructure that operate alongside Rice’s student selectivity.
Accounting Reconciliation: Readers comparing Rice University’s PwC-audited consolidated GAAP financial statements to IRS Form 990 will note three structural accounting differences. First, Form 990 reports $1.37B in total functional expenses by recording $301.6M in grants ($297.7M in domestic student scholarships and fellowships, including $262.1M applied internally to student accounts) as an operating expense, whereas GAAP financial statements net student tuition discounts directly against gross tuition and fee revenue. Second, per Form 990 Part IV (Lines 12a–12b) and Schedule D (Part XIII FIN 48 footnote), Rice’s consolidated GAAP financial statements integrate the University with 11 subsidiary corporations (two 501(c)(2) title-holding corporations including Rice Land Lumber Co. and RU Corporation, two 501(c)(3) Type I supporting organizations—The Center for Collaborative Research Inc. and Rice 360 Institute for Global Health—one 501(c)(4) trust company Rice Trust Inc., four 501(c)(25) real estate holding companies Rice RE Holdings I–IV, and two taxable corporations), alongside 9 disregarded LLCs (including Ion District Management Services LLC) and 23 related real estate and alternative investment partnerships on Schedule R. Because Rice is included in consolidated audited statements rather than standalone statements, Schedule D Parts XI and XII are left blank per IRS instructions, and net asset changes from subsidiary corporations (+$445.7M) and net unrealized investment adjustments (-$213.0M) are reconciled on Part XI (Lines 5 and 9). Third, Form 990 Part VIII records $608.5M in realized investment income ($520.0M in net capital gains and $88.4M in dividends and interest), whereas Schedule D, Part V reports $1.07B in total net endowment investment earnings prior to the $644.9M program and scholarship payout and $19.7M in investment management fees.
Frequently Asked Questions: Rice's Form 990 Financials
As of Fiscal Year 2025, Rice University's endowment stands at $8.39 billion ($8,389,936,000), up 5.8% year-over-year. Its $644.9 million direct program and scholarship payout covers 47.1% of the university's $1.37 billion Form 990 operating budget (48.5% or $664.6 million when including $19.7 million in endowment administrative expenses).
Rice spends $109,674 per student annually across all direct program services ($987.1 million across 9,000 degree-seeking students)—comprising $81,927 per student on regular session departmental instruction, research, and student aid ($737.3 million), $23,905 per student on basic scientific research ($215.1 million), and $3,842 per student on Fondren Library operations ($34.6 million)—compared to $65,173 per student generated in gross tuition, fees, and auxiliary housing. Overall institutional expenditure including administrative overhead and fundraising reaches $152,196 per student ($1.37 billion).
On Form 990 Schedule I, Rice disbursed $297.7 million ($297,672,443) in financial aid across 5,550 domestic students (61.7% of its 9,000 degree-seeking enrollment, averaging $53,635 per recipient). That includes $262.1 million applied directly to student accounts for tuition, fees, and room and board, plus $35.5 million paid out directly to 983 students. Approximately 70% of undergraduates and nearly all doctoral students receive financial aid.
The highest-paid employee is Chief Investment Officer and Treasurer Allison Thacker, who received $2,975,212 in total compensation in FY25, followed by President Reginald DesRoches ($2,074,566), Investment Manager John Lawrence ($1,172,708), Associate Professor Brent Smith ($1,171,411), and Investment Manager Craig Beech ($1,087,335).
Yes. Because Rice is a private university with more than 500 tuition-paying students and holds $932,215 in endowment assets per student (exceeding the $500,000 federal threshold), it is subject to the 1.4% IRC Section 4968 excise tax on net investment income. Per Schedule D, Part XIII, the portion of the excise tax associated with current-period realized gains was $8.1 million in FY25, up from $3.4 million in FY24.
Rice University's total assets reached $11.18 billion ($11,183,685,000) in Fiscal Year 2025, anchored by $9.08 billion in balance sheet investment securities ($4.82 billion in closely held equity partnerships, $3.01 billion in publicly traded securities, $1.06 billion in real estate and physical assets, and $197.8 million in other investments) and $1.70 billion in net physical plant.
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