Groton School Assets Reach $703 Million, Total Net Assets Grew 6.2% to $640 Million Split Evenly Between Donor-Restricted Funds and Unrestricted Reserves
By Data Team | Published October 29, 2026
Groton School's total assets reached $703.5 million in fiscal year 2025, anchored by a $547.8 million endowment ($1.44 million per student) that covers 41.4% of the boarding school's Form 990 operating budget—and 50.4% of its GAAP audited expenses—according to its latest IRS filing. That capital base enables Groton to spend $107,932 per student in direct program services ($153,011 per student in total institutional expenditure across 381 students) while awarding $7.99 million in student financial aid.
Groton's finances demonstrate how concentrated per-capita wealth operates within a deliberately small residential community. While tuition and program fees generate $61,638 per student, endowment payouts and philanthropy subsidize direct educational programming by $46,294 per pupil and fund financial aid for 41% of the student body—underpinning Groton's #1 standing in the Boston Elite College Placement Index (ECPI).
By maintaining enrollment at 381 students across grades eight through twelve, Groton pairs small-cohort instruction with college-scale investment resources. Realized investment income and annual giving account for nearly 65% of total revenue, insulating tuition policy and financial aid budgets from short-term enrollment pressures.
Institutional & Governance Profile
Founded in 1884 in Groton, Massachusetts, Groton School operates as a 501(c)(3) college preparatory boarding school serving grades eight through twelve (Forms II–VI). Its governance structure pairs an administrative leadership team with an independent board of trustees that oversees audit compliance, executive compensation, and endowment management.
Institutional Scale and Board Structure
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Founding & Workforce Scale: Founded in 1884, the school employed 260 Form W-2 staff members in calendar year 2024 and engaged an estimated 300 volunteers across its governance and alumni network.
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Executive Leadership: Headmaster Temba Maqubela leads the school alongside Chief Financial Officer John Herlihy and Controller and Deputy CFO James Raney.
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Governing Board (Part VI): The Board of Trustees comprises 27 voting members, including 26 independent trustees and Headmaster Temba Maqubela as the sole non-independent voting member.
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Board Officers & Oversight (Schedule O): Board officers include President Benjamin N. Pyne, Vice President Gary C. Hill, Secretary Charles S. Duggan, and Treasurer Nathaniel A. Bristol. The Audit Committee reviews the Form 990 prior to full board portal access and annual conflict-of-interest sign-offs.
Top-Line Financials
In FY25 (covering July 1, 2024 through June 30, 2025), Groton School expanded its total assets to $703.5 million while reducing total liabilities by 5.9%. Total net assets grew 6.2% to $640.1 million, split evenly between donor-restricted funds and unrestricted reserves.
Balance Sheet Strength
- Total Assets $703,509,165 (+5.0%)
- Total Liabilities $63,425,967 (-5.9%)
- Total Net Assets $640,083,198 (+6.2%)
- Donor-Restricted Net Assets $320,132,295 (50.0% of Total Net Assets)
- Unrestricted Net Assets $319,950,903 (50.0% of Total Net Assets)
Operating Performance
- Total Revenue $66,947,623 (-6.4%)
- Total Expenses $58,297,149 (+5.3%)
- Operating Surplus $8,650,474 (-46.6%)
- Unrealized Gains (Excluded) $28,177,965
Note: The $8.65 million reported operating surplus reflects standard Form 990 accounting parameters; adding $28.18 million in net unrealized investment gains and $317,282 in split-interest and pension adjustments accounts for the full $37.15 million increase in FY25 net assets.
Revenue Breakdown
Groton's revenue structure relies more heavily on investment returns than on student tuition. In FY25, realized investment income ($25.76 million) and donor contributions ($17.58 million) generated 64.7% of Groton's $66.95 million in total revenue, while tuition and program fees accounted for 35.1%.
Primary Revenue Streams
FY25 Revenue Distribution
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Investment Income Down 4.8% YoY$25,758,591 (38.5%)
- Realized Capital Gains $18,753,319
- Dividends & Interest $7,005,272
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Program Service Revenue Up 2.6% YoY$23,484,000 (35.1%)
- Tuition $22,807,688
- Technology Support & Laptop Lease $398,700
- Health Center Fee $125,200
- Application Fees & Other $152,412
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Contributions & Grants Down 18.2% YoY$17,577,329 (26.3%)
- Cash Contributions & Grants $16,769,161
- Noncash Public Securities (90 Gifts) $808,168
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Other Revenue Up 0.2% YoY$127,703 (0.2%)
- Net Rental Income & School Store $72,638 Rents / $55,065 Store Net
Endowment Performance and Asset Allocation
Groton's endowment closed FY25 at $547.8 million, equating to $1,437,698 per student across its 381-student enrollment. Across its $553.8 million total investment portfolio reported on Part X, Groton splits capital evenly between publicly traded securities ($276.2 million, or 49.9%) and alternative investments ($277.6 million, or 50.1%) spanning hedge funds, venture capital, private equity, and real assets.
Working with Boston-based investment advisor Cambridge Associates ($939,171 in advisory compensation out of $2.66 million in total investment management fees), Groton also maintains $60.9 million in foreign-domiciled investment funds in East Asia and the Pacific ($37.0 million) and Central America and the Caribbean ($23.9 million). Because Groton is classified as a secondary school rather than a college, its investment returns are exempt from the federal IRC Section 4968 endowment excise tax.
Portfolio Performance & Asset Allocation ($553.8M Total Holdings)
Part X & Schedule D, Part VII Allocation
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Endowment Balance (EOY): $547,763,065 (up 6.9% YoY), representing $1,437,698 per student across 381 students.
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Net Investment Gains: $51,288,268 (including $18.75M in realized gains and $28.18M in net unrealized gains).
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Alternative & Offshore Capital: 50.1% ($277.6M) of total investments sit in alternative funds, with $60.9M domiciled in East Asia/Pacific ($37.0M) and Central America/Caribbean ($23.9M) structures.
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Total Payout: $24,147,174 ($16.28M to facilities and programs; $7.86M to scholarships), funding 41.4% of Form 990 total expenses (50.4% of GAAP expenses).
Detailed Asset Mix
5-Year Endowment History
Schedule D, Part V tracks Groton's endowment across a five-year window from FY21 through FY25. Starting from a $358.7 million balance at the beginning of FY21, the endowment received $45.0 million in direct contributions and generated $257.9 million in cumulative net investment earnings—highlighted by a $130.2 million surge in FY21 and consecutive gains of $53.2 million in FY24 and $51.3 million in FY25. Over the same period, the endowment distributed $113.9 million toward scholarships ($32.4 million) and campus programs and facilities ($81.4 million), finishing FY25 at $547.8 million (comprising 44% board-designated quasi-endowment, 28% permanent endowment, and 28% term endowment).
FY25 Endowment Waterfall (Schedule D, Part V)
Visualizing the bridge from Beginning of Year (1a) to End of Year (1g) in millions.
5-Year Historical Endowment Balances (Line 1g)
End of year balance progression in millions (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 | $512,368,163 | $476,587,579 | $467,068,923 | $477,247,136 | $358,682,522 |
| 1b. Contributions | $8,253,808 | $6,981,379 | $9,572,020 | $8,343,162 | $11,890,148 |
| 1c. Net investment earnings | $51,288,268 | $53,232,057 | $24,711,529 | ($1,539,590) | $130,230,943 |
| 1d. Grants or scholarships | ($7,863,733) | ($7,243,273) | ($6,453,531) | ($6,267,897) | ($4,612,648) |
| 1e. Other expenditures | ($16,283,441) | ($17,189,579) | ($18,311,362) | ($10,713,888) | ($18,943,829) |
| 1f. Administrative expenses | $0 | $0 | $0 | $0 | $0 |
| 1g. End of year balance | $547,763,065 | $512,368,163 | $476,587,579 | $467,068,923 | $477,247,136 |
Per-Student Spending and True Cost
Evaluating direct program service expenditures against tuition revenue highlights the structural subsidy built into a Groton education. Across 381 enrolled students in FY25, Groton spent $41,122,177 on direct program services, or $107,932 per student ($86,954 net per student excluding domestic student grants). When management and general overhead ($14.17 million) and fundraising expenses ($3.01 million) are included, total institutional spending reaches $58,297,149, or $153,011 per student.
By comparison, total program service revenue—including tuition, technology support, laptop leases, and health center fees—generated $23,484,000, or $61,638 per student ($59,863 from baseline tuition alone). Full tuition and fees cover 57.1% of direct program service costs, leaving a $46,294 per-student program gap funded by endowment payouts and annual giving.
Operations vs. Revenue
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Regular Session Program Spend: $41,122,177 across 381 students in Grades 8–12 ($107,932 direct program spend per student; $86,954 net excluding $7.99M in student grants).
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Total Institutional Spend: $58,297,149 across all functional categories ($153,011 total spend per student, including $14.17M in management/general and $3.01M in fundraising).
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Tuition & Fee Revenue: $23,484,000 ($61,638 per student before financial aid discounts, including $22.81M in gross tuition). Endowment payouts and gifts cover the $46,294 per-student program subsidy gap.
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Global Education & International Travel (Schedule F): $386,500 spent on international academic, arts, and athletic programs (including financial aid for qualified students), led by a 46-student hockey trip to Europe ($176,000), a 31-student orchestra tour of Europe ($109,000), a 14-student global education trip to Scotland ($57,000), a 5-student conference in India ($24,000), and an 8-student orchestra trip to South Africa ($10,000).
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International Admissions & Development: $47,000 spent in East Asia and the Pacific for a July 2024 admissions event ($15,000) and a March 2025 fundraising reception ($32,000) in Hong Kong.
Financial Aid: How Groton Spends $7.99M on Access
Groton's Part III and Schedule I disclosures detail how the school supports socioeconomic access across its 381-student boarding community. In FY25, Groton provided financial assistance to 41% of its student body, disbursing $7,992,566 in total domestic student grants.
Beyond $7,270,530 in tuition grants credited to 172 recipients (covering the regular academic year and summer session), Groton distributed $722,036 in supplemental grants to cover student travel, incidental expenses, laptop purchases, and parent travel. These wraparound credits offset monthly student bills and reimburse families directly so aided students can participate fully in residential and global programming.
Internal Student Support
- Aided Student Share 41.0% (172 total grant recipients)
- Tuition Grants (Schedule I) $7,270,530
- Average Tuition Grant per Recipient $42,271
- Wraparound Supplemental Grants $722,036
- Total Student Aid Disbursed $7,992,566
Supplemental Aid Breakdown (Schedule I)
- Student & Parent Travel Grants ($427,543) $385,206 in student travel grants across 160 recipients and $42,337 in parent travel grants across 47 recipients, plus financial aid embedded in international Orchestra, Hockey, Scotland, and India trips.
- Incidental & Laptop Grants ($294,493) $231,152 in incidental grants across 104 recipients and $63,341 in laptop purchase subsidies across 53 recipients applied directly to monthly student bills.
Executive and Senior Leadership Compensation
Groton's highest-compensated employee in FY25 was Headmaster Temba Maqubela, who received $1,074,459 in total compensation, followed by Director of Development John MacEachern ($571,428) and Chief Financial Officer John Herlihy ($392,432). Because Groton outsources portfolio advisory services to Cambridge Associates rather than employing an internal investment team, its Schedule J disclosures consist entirely of senior academic, financial, admissions, and advancement leaders.
The Board's Compensation Committee sets executive pay annually using an independent compensation consultant and peer benchmarking data from the 40-member Association of Business Officers of Preparatory Schools (ABOPS) salary survey.
Payroll Scale and Compensation Governance
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Total Institutional Payroll: Groton paid $25,622,434 in total employee compensation and benefits in FY25 (44.0% of all institutional expenses) across 260 W-2 employees, with 38 staff members earning over $100,000 in reportable compensation.
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Top Executive Packages & Section 457(f) Plans: Headmaster Temba Maqubela received $1,074,459 in total compensation ($672,572 base salary, $17,125 other reportable compensation, $304,255 in retirement and Section 457(f) nonqualified deferred compensation with 3-to-5-year vesting, and $80,507 in nontaxable benefits).
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On-Campus Housing, Transition Stipends & Schedule L: Teaching faculty are required to reside in on-campus housing as a condition of employment, while select off-campus administrators receive taxable housing stipends. One unplanned stipend was awarded for service during a CFO transition, and Schedule L discloses $188,893 paid to Vuyelwa Maqubela (family member of Temba Maqubela) serving as Teacher and Advisor to the Head of School.
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Form 990, Schedule J, Part II: Compensation Breakdown (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) |
| Temba MaqubelaHeadmaster | $672,572 | $0 | $17,125 | $304,255 | $80,507 | $1,074,459 | $0 |
| John MacEachernDirector of Development | $306,913 | $0 | $182,735 | $30,507 | $51,273 | $571,428 | $0 |
| John HerlihyChief Financial Officer | $323,022 | $0 | $5,528 | $31,050 | $32,832 | $392,432 | $0 |
| Harold W. Anderson IIIAssistant Headmaster | $195,520 | $0 | $20,000 | $76,475 | $22,531 | $314,526 | $0 |
| John T. ConnerTeacher and Dean of Faculty | $122,510 | $0 | $78,130 | $76,399 | $15,736 | $292,775 | $0 |
| Ian GraceyDirector of Admissions | $197,949 | $0 | $0 | $60,875 | $21,408 | $280,232 | $0 |
| James RaneyController and Deputy CFO | $187,228 | $0 | $30,000 | $26,023 | $17,343 | $260,594 | $0 |
Facilities, Debt, and Municipal Relations
Groton maintains $290.0 million in gross campus land, buildings, and equipment ($127.7 million net book value after accumulated depreciation). To finance campus infrastructure without liquidating endowment principal, the school utilizes tax-exempt municipal bonds paired with long-term interest rate swap agreements.
Alongside its tax-exempt property footprint on Farmers Row, Groton makes direct annual grants to the Town of Groton to subsidize municipal operating costs and local preservation initiatives, documented on Schedule I, Part II.
Capital Debt & Municipal Engagement
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Physical Plant & Campus Operations: Groton holds $290,016,620 in gross land, buildings, and equipment ($127,694,881 net book value after $162.32M in accumulated depreciation), spending $3,679,755 on occupancy alongside $9,143,788 in annual depreciation.
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Tax-Exempt Bonds & Interest Rate Swaps: The school carries $49,117,473 in tax-exempt bond liabilities (down $3.18M from $52.29M in FY24) issued via the Massachusetts Development Finance Agency (a $40.78M October 2013 issue with $16.66M retired, and a $34.22M February 2020 refunding issue with $9.00M retired). Groton recorded $1,653,977 in FY25 interest expense and $1,789,413 in swap liabilities with Bank of New York Mellon (20-year and 38-year maturities) and Morgan Stanley Capital Services (30-year maturity).
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Schedule I Town-Gown PILOT Payments & Municipal Relations: Groton disbursed $220,020 in domestic organizational and municipal grants, led by $215,000 in direct cash grants to the Town of Groton: $205,000 to subsidize the town's annual operating costs (PILOT) and $10,000 to the Destination Groton Gift Fund to promote and preserve the town, plus $5,020 in smaller community donations.
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Top Independent Contractors: Among 25 contractors paid over $100,000, top disbursements went to FLIK ($2,680,540 for dining services), Mahan Slate Roofing Company ($1,891,480 for construction), Cambridge Associates LLC ($939,171 for investment advisory), MJ Cataldo Inc. ($928,212 for construction), and Eagle Cleaning Corporation ($791,940 for campus cleaning).
Editorial Note
All financial figures in this report derive from Groton School's FY25 IRS Form 990 (covering July 1, 2024 through June 30, 2025 across 381 enrolled students in grades 8–12) and have been verified by the Chicardgo School data team.
While Groton spends $107,932 per student in direct program services ($153,011 in total expenditure), Chicardgo School does not imply that financial expenditure mathematically causes higher placement into Ivy+, Top 25 National University, or Top 15 Liberal Arts College tiers. Rather, these financial resources support the faculty, financial aid access, and academic infrastructure operating alongside Groton's historical matriculation outcomes.
Accounting Reconciliation: Readers comparing Groton's audited financial statements (Schedule D, Parts XI and XII) to IRS Form 990 will note differences in reported totals. Form 990 reports $58.30M in total expenses (which includes $7.27M in tuition financial aid grants, $2.66M in investment management fees, and $835,045 in operating expenses netted against revenue), whereas GAAP audited financial statements report $47.89M in total expenses (netting tuition grants against revenue and adding $362,590 in rental, school store COGS, and swap adjustments). Similarly, GAAP total revenue and gains of $85.04M include $28.18M in net unrealized investment gains excluded from Form 990 total revenue of $66.95M.
Frequently Asked Questions: Groton's Form 990 Financials
As of Fiscal Year 2025, Groton School's endowment stands at $547.8 million ($1,437,698 per student across 381 students). Its $24.15 million annual payout funds 41.4% of the school's Form 990 total budget and 50.4% of its GAAP audited operating expenses.
Groton spends $107,932 per student annually in direct program service expenditures ($41.12 million across 381 students), which exceeds the $61,638 generated per student in tuition and program fees. Including management and fundraising overhead, total institutional expenditure reaches $153,011 per student ($58.30 million total).
Groton disbursed $7.99 million in domestic student financial aid in FY25, supporting 41% of its student body. That total includes $7.27 million in tuition grants across 172 academic-year and summer recipients and $722,036 in supplemental grants for student travel, incidental expenses, laptops, and parent travel.
The highest-paid employee is Headmaster Temba Maqubela, who received $1,074,459 in total compensation in FY25, including $672,572 in base compensation, $17,125 in other reportable pay, $304,255 in retirement and Section 457(f) deferred compensation, and $80,507 in nontaxable benefits.
Yes. Because federal law classifies Groton as a 501(c)(3) secondary school rather than an institution of higher education, the school is exempt from the federal IRC Section 4968 excise tax on net investment income, despite holding $1.44 million in endowment assets per student.
Groton School's total assets reached $703.5 million in fiscal year 2025, anchored by $553.8 million in total investment holdings and $127.7 million in net campus real estate and equipment.
Further Reading
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