USC Assets Reach $16.96 Billion in 2025 as Tuition Supplies 44% of Revenue, Funding $847 Million in Student Aid and a $342 Million Operating Surplus
By Data Team | Published November 6, 2026
The University of Southern California’s total assets reached $16.96 billion in fiscal year 2025, backed by an $8.71 billion endowment whose $381.3 million annual outlay ($365.0 million in direct scholarships and academic program payouts plus $16.3 million in administrative fees) covers 6.8% of the university's $5.59 billion Form 990 operating budget (6.5% excluding administrative fees), according to its latest IRS filing. Across its 46,000 enrolled students, USC spends $81,346 per student on direct instruction, academic research, and student aid ($3.74 billion)—while total program service expenditure across instruction, clinical care, and auxiliary enterprises reaches $98,930 per student ($4.55 billion) and total institutional expenditure hits $121,443 per student ($5.59 billion).
Unlike ultra-endowed peers that fund a fifth or more of their budgets from investment payouts, USC operates a scale-driven model anchored by student enrollment and academic medicine. Gross tuition and fees generate $2.63 billion ($57,103 per student), representing 44.3% of USC’s $5.93 billion total revenue ($2.98 billion, or 50.3%, when including $356.6 million from housing, dining, and auxiliary services). Sponsored research and private philanthropy ($1.38 billion), faculty clinical practice revenue ($465.6 million in net patient service revenue plus $47.0 million in professional services agreements), and realized investment income ($421.2 million) supply the balance of operating inflows.
To maintain socioeconomic access across a 20,000-student undergraduate body and 26,000-student graduate population, USC recyclesnearly a third of gross tuition inflows directly into financial aid. In FY25, the university disbursed $846.9 million in direct Form 990 Schedule I cash grants across 25,952 domestic recipients—representing 56.4% of total enrollment and supporting more than two-thirds of all undergraduate students.
Institutional & Governance Profile
Incorporated in California in 1895 (founded in 1880) under the legal name University of Southern California (EIN 95-1642394), USC is headquartered at University Park in Los Angeles with a major clinical and biomedical complex at the Health Sciences Campus. As the largest private-sector employer in the City of Los Angeles, the university oversees the Dornsife College of Letters, Arts and Sciences, the Keck School of Medicine, the Viterbi School of Engineering, the Marshall School of Business, and 19 additional professional schools, alongside its separately incorporated controlled health system affiliates under Keck Medicine of USC.
Institutional Scale and Board Structure
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Founding & Workforce Scale: Founded in 1880 and incorporated in 1895, USC issued 46,305 Form W-2s in calendar year 2024 and filed 64,031 Form 1096 vendor returns, serving approximately 33,700 active faculty and staff across its Los Angeles campuses.
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Academic & Clinical Footprint: Approximately 46,000 students—comprising 20,000 undergraduates and 26,000 graduate and professional students—enrolled in FY25, earning 5,900 bachelor’s degrees and 12,520 advanced degrees. More than 600 full-time Keck School of Medicine faculty physicians ("The Doctors of USC") practice across Keck Hospital of USC, USC Norris Cancer Hospital, USC Verdugo Hills Hospital, USC Arcadia Hospital, Los Angeles General Medical Center, and Children’s Hospital Los Angeles.
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Executive Leadership: President Carol L. Folt (who served through FY25 prior to Senior Vice President and General Counsel Beong-Soo Kim assuming the presidency) led the administration alongside Provost Andrew T. Guzman, Senior Vice President of Finance and CFO Erik Brink, Senior Vice President for Health Affairs Steven D. Shapiro, Keck Medicine CEO Rod Hanners, and Chief Investment Officer Amy Diamond.
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Governing Board (Schedule O): The Board of Trustees comprises 39 voting members, 37 of whom are independent, chaired by Suzanne Nora Johnson. In FY25, the Board amended its bylaws to formalize annual capital budget approvals alongside the operating budget. The Audit and Compliance Committee reviews the Form 990 prior to full board distribution, and all trustees, faculty, and covered staff complete mandatory conflict-of-interest disclosures overseen by the Office of Ethics and Compliance.
Top-Line Financials
During FY25 (covering July 1, 2024 through June 30, 2025), USC generated $5.93 billion in gross receipts and $5.93 billion in total net revenue. Strict expense discipline—holding total functional expense growth to 0.9% ($5.59 billion) while revenue rose 6.3%—expanded USC's operating surplus ninefold from $37.5 million in FY24 to $341.6 million in FY25 (+810.4%). Total assets increased 12.6% to $16.96 billion, while net assets grew 10.5% to $11.32 billion, weighted two-thirds toward donor-restricted reserves (66.5%).
Balance Sheet Strength
- Total Assets $16,956,079,936 (+12.6%)
- Total Liabilities $5,631,510,850 (+17.3%)
- Total Net Assets $11,324,569,086 (+10.5%)
- Donor-Restricted Net Assets $7,527,937,447 (66.5% of Total Net Assets)
- Unrestricted Net Assets $3,796,631,639 (33.5% of Total Net Assets)
Operating Performance
- Total Revenue $5,927,980,342 (+6.3%)
- Total Expenses $5,586,359,463 (+0.9%)
- Operating Surplus $341,620,879 (+810.4%)
- Unrealized Gains (Excluded) $722,894,857
Note: The $341.6 million reported operating surplus reflects Form 990 realized accounting parameters; adding $722.9 million in net unrealized investment gains and $7.3 million in pension, annuity, and other net asset adjustments accounts for the full $1.07 billion expansion in USC's FY25 net assets.
Revenue Breakdown
All four of USC’s revenue pillars expanded in FY25, led by a 75.8% surge in realized investment income and a 1,728.4% increase in other revenue driven by $55.5 million in settlement recoveries. Program service revenue—USC’s primary financial engine at 68.7% of total inflows—rose 1.9% to $4.07 billion, anchored by $2.63 billion in student tuition and fees and $465.6 million in net patient service revenue from Keck School of Medicine clinical faculty. Contributions and grants grew 3.0% to $1.38 billion, split between $727.8 million in private philanthropy and $650.8 million in government research grants across 459 federal and 305 private/state contracts and awards.
Primary Revenue Streams
FY25 Revenue Distribution
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Program Service Revenue +1.9% YoY$4,070,004,224 (68.7%)
- Tuition & Fees $2,626,740,015
- Net Patient Service Revenue (Doctors of USC Faculty Practice) $465,642,855
- Auxiliary Enterprises (Housing, Dining, Bookstore & Parking) $356,562,275
- All Other Program Service Revenue $345,619,644
- Recovery of Indirect Cost ($228.4M) & Professional Services ($47.0M) $275,439,435
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Contributions & Grants +3.0% YoY$1,378,553,356 (23.3%)
- Private Philanthropy & Fundraising Events ($725.9M Gifts + $1.8M Events) $727,751,393
- Government Research & Sponsored Grants $650,801,963
- Noncash Gifts Included Above (311 Stock Gifts, 51 Equipment Items, 1 Art Work) $58,464,903
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Investment Income +75.8% YoY$421,157,247 (7.1%)
- Realized Net Capital Gains ($359.6M Securities less -$5.1M Other Basis) $354,571,814
- Dividends, Interest & Other Investment Income $66,585,433
- Tax-Exempt Bond Proceeds Income $0
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Other Revenue +1,728.4% YoY$58,265,515 (1.0%)
- Settlement Recoveries (Part VIII, Line 11a) $55,500,000
- Intellectual Property Royalties ($3.61M) less Net Event Loss (-$847K) $2,765,515
Endowment Performance and Asset Allocation
Managed by the USC Investment Office under Chief Investment Officer Amy Diamond, USC’s endowment rose 8.4% in FY25 to $8.71 billion, within a broader $9.84 billion balance sheet pool of invested securities, real estate, trusts, and liquid cash reserves. Across USC’s total invested capital, alternative assets—led by private equity ($3.16 billion), hedge funds ($2.91 billion), and investment real estate ($697.0 million)—account for 68.7% of holdings, alongside $2.32 billion in publicly traded equities and fixed income.
To execute its global investment and academic strategy, USC holds $537.8 million in foreign-domiciled investments reported on Schedule F—concentrated in Central America and the Caribbean ($434.6 million), Europe ($98.1 million), and East Asia and the Pacific ($5.1 million)—and generated $112.1 million in gross unrelated business revenue ($19.2 million net taxable income on Form 990-T). Because USC’s $8.71 billion endowment is spread across 46,000 enrolled students ($189,294 per student), the university falls well below the $500,000 per-student statutory threshold and is exempt from the federal IRC Section 4968 endowment excise tax (Form 990, Part V, Line 16).
Portfolio Performance & Asset Allocation ($9.84B Total Invested & Liquid Reserves / $8.71B Endowment)
Part X & Schedule D, Parts VII & IX Allocation
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Endowment Balance (EOY): $8,707,524,568 (+8.4% YoY), representing $189,294 per enrolled student across 46,000 students and exempting USC from the federal Section 4968 endowment excise tax.
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Net Investment Gains: $1,052,181,041 in endowment investment earnings (+47.9% YoY from $711.3M in FY24).
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Alternative & Offshore Capital: 68.7% of total invested assets ($6.76B) sit in private equity, hedge funds, and real estate, including $537.8M in offshore investment vehicles across the Caribbean, Europe, and East Asia.
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Total Payout & Budget Coverage: $381,339,943 in total endowment expenditures ($283.2M for facilities and academic programs, $81.8M for student scholarships, and $16.3M in administrative fees), funding 6.8% of Form 990 total expenses (6.5% excluding administrative fees).
Detailed Asset Mix (Balance Sheet Invested & Liquid Reserves)
5-Year Endowment History
Schedule D, Part V documents the five-year trajectory of USC’s endowment from a $5.40 billion opening balance in FY21 to $8.71 billion at the close of FY25 (+61.2% cumulative growth). Over this five-year span, the endowment absorbed $673.7 million in donor contributions and generated $4.33 billion in net investment earnings—anchored by a $2.22 billion post-pandemic surge in FY21 and $1.05 billion in FY25 gains, which more than offset a $275.1 million market pullback in FY22. Over the same period, the endowment distributed $1.69 billion to the university, including $350.0 million in direct scholarship grants, $1.27 billion for academic programs and facilities, and $70.1 million in investment management and administrative expenses. At year-end FY25, 76.67% of the endowment was held in permanent donor-restricted funds and 23.33% in board-designated quasi-endowment (0% term 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 | $8,030,138,860 | $7,533,995,740 | $7,112,497,110 | $7,517,878,238 | $5,400,108,641 |
| 1b. Contributions | $6,544,610 | $163,841,627 | $170,484,066 | $177,331,473 | $155,477,007 |
| 1c. Net investment earnings | $1,052,181,041 | $711,336,977 | $619,091,278 | ($275,090,857) | $2,221,283,012 |
| 1d. Grants or scholarships | ($81,810,035) | ($79,811,666) | ($79,166,888) | ($55,700,687) | ($53,482,200) |
| 1e. Other expenditures | ($283,195,997) | ($283,173,920) | ($281,173,815) | ($232,597,741) | ($194,880,267) |
| 1f. Administrative expenses | ($16,333,911) | ($16,049,898) | ($14,583,418) | ($12,475,909) | ($10,627,955) |
| 1g. End of year balance | $8,707,524,568 | $8,030,138,860 | $7,533,995,740 | $7,112,497,110 | $7,517,878,238 |
Per-Student Spending and True Cost
Calculating per-student resource allocation at USC requires distinguishing direct academic and research program services from clinical medical operations and institutional overhead. On Form 990 Part III (Line 4a), USC reports $3,741,905,239 in direct program service expenses for instruction, sponsored and departmental research, and student aid across approximately 46,000 students (20,000 undergraduates and 26,000 graduate and professional students). That equals $81,346 per student in direct academic program spend ($62,934 net per student excluding $846.9 million in domestic student financial aid grants).
By comparison, gross student tuition and fees (Part VIII, Line 2a) total $2,626,740,015, or $57,103 per student—covering 70.2% of direct academic program costs ($64,854 per student, or 79.7%, when including $356.6 million in auxiliary housing, dining, and bookstore revenue) and leaving a $24,243 per-student academic gap bridged by federal research grants, private philanthropy, and endowment distributions. When incorporating all university program services (Part III, Line 4e)—adding Keck School of Medicine faculty clinical care ($471.2 million) and Auxiliary Enterprises ($337.6 million)—total program service expenditure reaches $4,550,764,496 ($98,930 per student), while total institutional expenditure including administrative overhead and fundraising reaches $5,586,359,463 ($121,443 per student).
Operations vs. Revenue
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Regular Session Academic Program Spend (Part III, Line 4a): $3,741,905,239 across 46,000 undergraduate and graduate students ($81,346 gross direct academic and research spend per student; $62,934 net excluding $846.9M in domestic student aid grants).
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Total Program Service & Enterprise Spend (Part III, Line 4e & Part IX): $4,550,764,496 in total program services ($98,930 per student across instruction/research, faculty healthcare, and auxiliaries) and $5,586,359,463 in overall institutional spend ($121,443 per student).
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Tuition & Auxiliary Revenue Coverage: $2,626,740,015 in gross tuition and fees ($57,103 per student) plus $356,562,275 in auxiliary enterprises ($64,854 combined per student). After deducting $846.9M in financial aid grants ($18,412 per enrolled student), net tuition of $1.78B ($38,691 per student) covers 47.6% of direct academic program expenditure.
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Faculty Clinical Care & Research Grants (Lines 4a & 4b): 600+ full-time Keck School of Medicine faculty physicians generated $512,661,879 in clinical program revenue ($465.6M patient service revenue plus $47.0M professional services agreements) against $471,235,432 in clinical expenses ($41.4M positive operating margin, including an $8.86M grant to USC Health System), while researchers executed 459 federal and 305 private/foundation contracts and grants.
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Auxiliaries, Collections & Global Footprint (Line 4c, Schedule D & Schedule F): $337,623,825 in auxiliary operations (serving 46,000 students and 33,700 faculty/staff across housing, dining, bookstores, and parking), $32,422,752 in capitalized art, film, script, and historical collections (Schedule D, Part III), and $22,814,261 in global academic, recruitment, study-abroad, and grantmaking expenditures across 9 international offices (Schedule F).
Financial Aid: How USC Deploys $846.9M in Student Support
USC administers one of the largest private university financial aid budgets in the United States, committing to meet 100% of USC-determined financial need for all admitted domestic undergraduate students who satisfy federal, state, and institutional eligibility requirements. In FY25, USC disbursed $846,941,989 in direct cash grants to 25,952 domestic students on Form 990 Schedule I (Part III), representing 56.4% of its 46,000-student enrollment and supporting over two-thirds of all undergraduate students.
The average financial aid grant across USC’s 25,952 aided recipients reached $32,635 in FY25, representing an institutional tuition discount rate of 32.2% against $2.63 billion in gross tuition and fees. Because endowment scholarship distributions ($81.8 million on Schedule D, Part V) cover 9.7% of USC's $846.9 million student aid outlay, the remaining 90.3% ($765.1 million) is funded directly through current-use philanthropy and operating tuition revenues.
Internal Student Support (Schedule I & D)
- Aided Student Share (Schedule I) 56.4% (25,952 students)
- Undergraduate Aid Rate >66.7% (Over Two-Thirds)
- Endowment-Funded Scholarships $81,810,035 (9.7%)
- Operating & Gift-Funded Aid $765,131,954 (90.3%)
- Total Domestic Student Cash Grants $846,941,989 ($32,635 avg.)
Research Subawards & External Grants
- Domestic Research Subawards & Health Grants ($248,445,054) Disbursed across 337 domestic entities (272 501(c)(3)/government entities and 65 corporate research partners), led by Northrop Grumman ($31.35M), Public Health Institute ($9.57M), USC Health System ($8.86M), UCLA ($7.20M), and University of Michigan ($6.62M).
- Foreign Subawards & Donor Advised Funds ($17,954,678) Includes $17.95M in international research subawards across 85 foreign institutions (Schedule F) alongside 10 Donor Advised Fund accounts holding $57.58M at year-end that distributed $7.55M in grants (Schedule D, Part I).
Executive and Athletic Compensation
USC’s Schedule J disclosures highlight the compensation structure of Big Ten Conference intercollegiate athletics, academic surgical practices, and university administration. The two highest-compensated employees at USC in calendar year 2024 were athletic coaches: Head Football Coach Lincoln Riley ($11,802,958 total compensation, including $10,355,294 in base pay and $1,135,203 in other reportable compensation) and Head Men's Basketball Coach Eric Musselman ($6,104,853, including $3,300,862 in base pay and $2,509,077 in other reportable compensation reflecting his prior employer contract buyout obligation).
Following athletic leadership, President Carol L. Folt ranked third at $4,301,294 ($2,030,318 base salary, $850,000 bonus, and $1,196,999 in other reportable benefits including a tax gross-up on mandatory off-campus presidential housing), ahead of clinical faculty and medical executives Louis Vandermolen, MD ($4,050,566), Chair of Surgery Vaughn Starnes, MD ($3,959,981), SVP for Health Affairs Steven D. Shapiro, MD ($3,285,046), Chair of Urology Inderbir Gill, MD ($3,141,326), Keck Medicine CEO Rod Hanners ($2,498,697), and Chief Investment Officer Amy Diamond ($2,300,862). Because USC pays over $1 million to multiple covered executives and coaches, the university is subject to the federal IRC Section 4960 21% excise tax on excess executive remuneration (Form 990, Part V, Line 15).
Payroll Scale and Compensation Governance
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Total Institutional Payroll: USC expended $3,046,451,344 in total salaries, wages, pensions, and employee benefits in FY25 (+3.0% YoY, representing 54.5% of all university expenses) across 46,305 W-2 employees, with 10,741 staff members earning over $100,000.
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Board Compensation Governance (Schedule O & J): A conflict-free committee of the Board of Trustees sets executive compensation under Treasury Regulation Section 53.4958-6 safe harbor standards using independent compensation consultants and peer comparability data. CIO Amy Diamond’s annual incentive award is benchmarked against pre-designated portfolio targets, with 50% deferred over a two-year vesting period.
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Executive Retention Plans & Housing Loans (Schedule J & L): Because USC lacks an on-campus presidential residence, the university provided President Folt with off-campus housing and a tax gross-up alongside multi-year retention plans ($2.0M vested in 2024 and paid in February 2025). Under Schedule L, Part II, USC holds $12,284,957 in outstanding board-approved employee housing loans across 15 loan agreements with 10 executives and deans (led by Scott Rabenold at $2.68M, Joel Curran at $2.51M, Steven D. Shapiro at $2.25M, and Carolyn Meltzer at $1.58M).
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Form 990, Schedule J, Part II: Compensation Breakdown — All 32 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) |
| Lincoln RileyHead Football Coach | $10,355,294 | $100,000 | $1,135,203 | $34,500 | $177,961 | $11,802,958 | $0 |
| Eric MusselmanHead Men's Basketball Coach (as of 4/4/24) | $3,300,862 | $0 | $2,509,077 | $262,798 | $32,116 | $6,104,853 | $0 |
| Carol L. FoltPresident / Trustee | $2,030,318 | $850,000 | $1,196,999 | $164,750 | $59,227 | $4,301,294 | $0 |
| Louis Vandermolen, MDProfessor of Clinical Medicine | $3,402,956 | $0 | $477,500 | $79,500 | $90,610 | $4,050,566 | $69,333 |
| Vaughn Starnes, MDChair & Distinguished Prof. of Surgery | $3,434,141 | $50,000 | $345,830 | $34,500 | $95,510 | $3,959,981 | $0 |
| Steven D. Shapiro, MDSVP, Health Affairs | $1,737,647 | $775,000 | $401,435 | $234,500 | $136,464 | $3,285,046 | $0 |
| Inderbir Gill, MDChair & Dist. Prof. of Urology / Exec. Dir. | $2,727,574 | $50,000 | $249,321 | $34,500 | $79,931 | $3,141,326 | $0 |
| Rod HannersCEO, Keck Medicine of USC | $1,469,543 | $673,253 | $209,655 | $92,192 | $54,054 | $2,498,697 | $0 |
| Amy DiamondChief Investment Officer | $981,008 | $693,334 | $283,607 | $284,500 | $58,413 | $2,300,862 | $382,969 |
| Carolyn Meltzer, MDDean, Keck School of Medicine | $1,340,435 | $200,000 | $100,000 | $17,250 | $60,026 | $1,717,711 | $0 |
| Beong-Soo KimSVP & General Counsel | $878,812 | $300,000 | $158,983 | $234,500 | $20,049 | $1,592,344 | $0 |
| Erik BrinkSVP Finance & CFO | $1,058,890 | $48,750 | $153,513 | $159,500 | $93,227 | $1,513,880 | $0 |
| Felicia A. WashingtonSVP Human Resources (until 8/31/24) | $552,687 | $300,000 | $562,970 | $34,500 | $38,741 | $1,488,898 | $0 |
| Geoffrey GarrettDean, Marshall School of Business | $916,005 | $150,000 | $181,335 | $34,500 | $42,537 | $1,324,377 | $0 |
| Andrew T. GuzmanProvost & SVP Academic Affairs | $860,317 | $43,875 | $213,440 | $34,500 | $131,840 | $1,283,972 | $0 |
| Scott RabenoldSVP, University Advancement | $784,203 | $150,000 | $217,558 | $34,500 | $63,272 | $1,249,533 | $0 |
| Ishwar K. PuriSVP, Research & Innovation | $660,816 | $200,000 | $159,076 | $34,500 | $32,344 | $1,086,736 | $0 |
| Joel CurranSVP & Chief Communications Officer | $603,643 | $114,952 | $144,060 | $132,833 | $19,422 | $1,014,910 | $50,000 |
| David W. WrightSVP, Administration | $534,373 | $200,000 | $115,019 | $34,500 | $43,087 | $926,979 | $0 |
| Tracey VranichFormer Interim SVP, Univ. Advancement | $697,066 | $0 | $59,568 | $34,500 | $41,827 | $832,961 | $0 |
| Samuel GarrisonSVP, University Relations | $486,388 | $125,000 | $75,935 | $34,500 | $58,737 | $780,560 | $0 |
| Laura Mosqueda, MDFormer Dean, Keck School of Medicine | $642,408 | $0 | $31,465 | $34,500 | $32,741 | $741,114 | $0 |
| Yannis C. YortsosDean, Viterbi School of Engineering | $548,382 | $65,000 | $29,317 | $34,500 | $49,808 | $727,007 | $0 |
| Stacy Reade RobertsSVP, Human Resources (as of 10/1/24) | $492,832 | $80,000 | $26,405 | $34,500 | $57,473 | $691,210 | $0 |
| Carolyn Domen-BroshearsSecretary of the University | $385,243 | $50,000 | $35,840 | $34,500 | $82,576 | $588,159 | $0 |
| Amber MillerDean, Dornsife College (until 6/14/24) | $434,413 | $0 | $74,680 | $34,500 | $31,912 | $575,505 | $0 |
| Elizabeth GraddyFormer Interim Provost & SVP | $389,836 | $3,000 | $115,968 | $34,500 | $25,593 | $568,897 | $0 |
| Mohammed El-NaggarInterim Dean, Dornsife College (as of 6/15/24) | $427,888 | $0 | $11,082 | $34,500 | $59,920 | $533,390 | $0 |
| Glenn OsakiFormer SVP & Chief Comms Officer | $274,389 | $0 | $31,607 | $30,089 | $34,518 | $370,603 | $0 |
| Narsing Rao, MDFormer Interim Dean, Keck School of Med. | $189,160 | $0 | $67,503 | $26,400 | $20,563 | $303,626 | $0 |
| Charles F. ZukoskiFormer Provost & SVP Academic Affairs | $244,868 | $0 | $0 | $25,170 | $13,577 | $283,615 | $0 |
| John M. IinoInterim Assoc. SVP Alumni (until 6/5/24) / Trustee | $138,548 | $0 | $31,208 | $0 | $2,089 | $171,845 | $0 |
Facilities, Debt, and Municipal Relations
Operating across urban Los Angeles campuses in University Park and Boyle Heights/East Los Angeles, USC finances its physical expansion through a combination of long-term taxable notes, capital leases, and tax-exempt municipal bonds. In April 2025, USC returned to the tax-exempt bond market through the California Educational Facilities Authority (CEFA), issuing $665.1 million in tax-exempt obligations ($663.0 million year-end carrying value on Part X, Line 20) to fund new campus capital projects alongside its $2.94 billion in existing secured mortgages and notes payable.
As the largest private employer in the City of Los Angeles, USC does not issue standalone voluntary municipal PILOT (Payment in Lieu of Taxes) checks on Schedule I. Instead, the university channels its local municipal and civic contributions through the USC Neighborhood Outreach competitive grantmaking program (overseen by USC Civic Engagement and the Education Consortium of Central LA), direct public-sector research subawards, and grants to dozens of South Los Angeles and Eastside nonprofit organizations surrounding its campuses.
Capital Debt & Municipal Engagement
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Physical Plant & Campus Operations: USC holds $7.73 billion in gross land, buildings, and equipment ($4.14 billion net book value after $3.59 billion in accumulated depreciation), recording $235.3 million in annual depreciation, $52.5 million in occupancy expenses, and $111.2 million in insurance costs (managed partly through three Vermont-domiciled captive insurers on Schedule R: Albedo Insurance Company IC, USC Captive Insurance Company, and General Liability Defense IC).
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Tax-Exempt Bonds & Institutional Debt (Schedule K & Part X): On April 15, 2025, USC issued $665,146,000 in CEFA tax-exempt bonds ($669.9M total proceeds; $24.7M spent on FY25 capital expenditures and $642.6M reserved for ongoing construction), complementing $2.94 billion in third-party notes and mortgages, $475.8 million in capital and operating lease liabilities, and $96.3 million in annual interest expense.
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Schedule I Town-Gown PILOT Payments and Municipal Relations: Rather than traditional municipal PILOT payments, USC deploys neighborhood grants monitored via six-month and year-end audits through the Education Consortium of Central LA (ECCLA)—including $485,440 to Community Partners and targeted grants ($8,500–$38,250) to over 25 local organizations such as Los Angeles House of Ruth, Community Services Unlimited, PUENTE Learning Center, 24th Street Theatre, Homeboy Industries, and Plaza de la Raza—alongside $295,884 in public-entity research subawards (City of Santa Barbara, Riverside Unified School District, Chicago Board of Education) and $693,906 in Schedule C local, state, and federal legislative advocacy.
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Top Construction & Campus Contractors: Three of USC's five highest-compensated independent contractors (among 930 contractors paid over $100,000) were construction firms: The Turner Corporation ($113.10M), Clark Construction Group - California ($51.38M), and H.C. Olsen Construction Co. ($18.25M), alongside Ernst & Young LLP ($19.57M for consulting) and Aramark ($18.09M for campus food services).
Editorial Note
All financial figures in this report derive from the University of Southern California’s FY25 IRS Form 990 (covering July 1, 2024 through June 30, 2025 across approximately 46,000 students—20,000 undergraduates and 26,000 graduate and professional students) and have been reviewed by the data team.
While USC expends $81,346 per student on direct instruction, research, and student financial aid ($98,930 per student across all university program services and $121,443 per student in total enterprise expenditure), Chicardgo School does not imply that financial expenditure mathematically causes specific postgraduate earnings or academic outcomes. Rather, these resources fund the laboratory infrastructure, financial aid pools, and faculty ratios that operate alongside USC’s student selectivity in the Los Angeles metropolitan economy.
Accounting Reconciliation: Readers comparing USC’s audited consolidated GAAP financial statements to IRS Form 990 will note three structural accounting differences. First, Form 990 reports $5.59B in total expenses by recording $1.11B in grants ($846.9M in student financial aid) as an operating expense and $2.63B in gross tuition and fees as revenue, whereas GAAP financial statements net student financial aid (tuition discounts) directly against gross tuition revenue. Second, per Part IV (Lines 12a–12b and 20a), Part XII (Line 2b), and Schedule R, USC’s consolidated GAAP financial statements combine the University with its separately incorporated controlled health system affiliates—including USC Health System, Keck Medical Center of USC, USC Verdugo Hills Hospital, USC Arcadia Hospital, and USC Care Medical Group Inc.—whereas this Form 990 represents the standalone legal filing of the University (capturing $512.7M in Keck School of Medicine faculty clinical revenue and $471.2M in faculty clinical expenses, plus Schedule R related-party transactions including $86.6M in expense reimbursements and $32.7M in transfers from Keck Medical Center of USC, while excluding the hospital corporations' separate inpatient operating budgets). Third, Form 990 Part VIII revenue ($5.93B) captures only realized investment income ($421.2M), whereas $722.9M in net unrealized investment gains are excluded from the operating statement and recorded directly on Part XI (Line 5).
Frequently Asked Questions: USC's Form 990 Financials
As of Fiscal Year 2025, USC's endowment stands at $8.71 billion ($8,707,524,568), up 8.4% year-over-year after generating $1.05 billion in net investment earnings. Its $381.3 million total annual outlay ($365.0 million in direct scholarship and academic program payouts plus $16.3 million in administrative expenses) covers 6.8% of the university's $5.59 billion Form 990 operating budget (6.5% excluding administrative fees).
USC spends $81,346 per student annually in direct academic program services—instruction, academic research, and student financial aid ($3.74 billion across 46,000 students)—compared to $57,103 per student collected in gross tuition and fees ($64,854 per student including auxiliary housing and dining). Across all Form 990 program service pillars (adding Keck School of Medicine faculty clinical care and auxiliary enterprises), total program service spend is $98,930 per student ($4.55 billion), and overall enterprise expenditure including administrative overhead and fundraising reaches $121,443 per student ($5.59 billion).
USC disbursed $846.9 million ($846,941,989) in direct cash financial aid grants across 25,952 domestic students on Form 990 Schedule I in FY25—representing 56.4% of its 46,000-student enrollment ($32,635 average grant per recipient) and supporting more than two-thirds of all undergraduate students.
The highest-paid employee is Head Football Coach Lincoln Riley, who received $11,802,958 in total compensation in calendar year 2024, followed by Head Men's Basketball Coach Eric Musselman at $6,104,853 (which included his prior employer buyout obligation) and President Carol L. Folt at $4,301,294.
No. Although USC has more than 500 tuition-paying students, its $8.71 billion endowment spread across 46,000 enrolled students equals $189,294 per student—well below the $500,000 per-student statutory threshold required to trigger the federal IRC Section 4968 excise tax on net investment income (Form 990, Part V, Line 16). However, USC is subject to the IRC Section 4960 excise tax on executive compensation exceeding $1 million (Part V, Line 15).
USC's total assets reached $16.96 billion ($16,956,079,936) in Fiscal Year 2025, up 12.6% year-over-year, anchored by $8.39 billion in marketable and alternative securities ($2.32 billion publicly traded and $6.06 billion in private equity and hedge funds), $4.14 billion in net land, buildings, and equipment, and $1.69 billion in real estate and other assets.
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