Show Me the Money: A Closer Look at Reed’s Latest Form 990

Each year, tax-exempt organizations like Reed College must file a Form 990 with the Internal Revenue Service (IRS), which is a public disclosure that lays out the school's revenue, expenses, assets, liabilities, governance structure, and top salaries for the year. Form 990 is the main window that students and the public have into how the college’s finances are run. Reed's Form 990 for the fiscal year running July 1, 2024, through June 30, 2025 is now available online at reed.edu under Financial Statements & Tax Returns (www.reed.edu/vice-president-treasurer/returns.html). 

The overall revenue for the 2024-2025 fiscal year came to a total of $234,628,051, up from $204,695,513 the year prior (+14.6%). Total expenses came in at $165,205,645, compared to $158,238,547 the previous year (+4.4%), leaving revenue less expenses at $69,422,406, a notable jump from the $46,456,966 surplus reported the year before (+49%). Total assets grew to $1,218,420,100, up from $1,135,702,740 at the start of the year (+7.3%), leading to a total net assets figure of $1,031,233,469 by the end of the fiscal year (+8% ). 

Reed's mission, as stated on the form, is to "provide education in the liberal arts and sciences." The school reported a total of 28 members of the governing body, including President Audrey Bilger, 27 of whom are independent—plus 1,703 individuals employed in calendar year 2024, and a total of 595 volunteers.

As of fall 2024, there were a total of 1,332 full time enrolled students, down from 1,422 the year before (-6.3%), and 410 degrees conferred in the 2024-25 school year. Instructional expenses came to $123,633,762, including grants totaling $41,260,781, and on top of this, auxiliary services such as students living in dorms, using dining facilities, and the Bookstore, which came to $23,577,129. Of the 1,332 full-time enrolled students, 820, or about 61.6%, received scholarships for tuition, fees, room and board, totaling $39,314,302. Fellowships and research grants were awarded to 388 students, or about 29.1% of the student body, totaling $1,601,583. Finally, scholarships for course and program fees were granted to 105 students, or about 7.9% of students, which came to $344,896. Separately, the Institute reported 26 research grants funded with federal funds during the year, totaling $3,219,964 in expenses, spanning the Biology, Chemistry, Physics, Psychology, Math, and Sociology departments, as well as the nuclear reactor.

When it came to administrative salaries, President Audrey Bilger was compensated the highest for the year, with $785,892 in reportable compensation from the college, plus $53,807 in retirement contributions and other nontaxable benefits, for a total of $839,699. Chief Investment Officer Erik Bernhardt followed with $470,727 in reportable compensation (including an $89,823 bonus) and $530,266 in total compensation. Vice President of Finance and Treasurer Lynn Valenter received $384,852 in reportable compensation and $438,659 in total compensation. Reed reported 163 individuals who received more than $100,000 in compensation from the college during the year. Only one member of the administration held a loan from the college: Milyon Trulove, former Vice President and Dean of Admission and Financial Aid, whose housing loan had an original principal of $60,000, of which $34,076 remained owed as of the filing.

Reed's investments outside the United States, according to Schedule F, totaled $370,230,000, broken down as $294,109,000 in Central America and the Caribbean, $70,410,000 in Europe (including Iceland and Greenland), and $5,711,000 in the Middle East and North Africa. The form notes that the college also spent smaller amounts supporting study-abroad programs across Europe, East Asia and the Pacific, South America, Central America and the Caribbean, Sub-Saharan Africa, South Asia, North America, and Russia and neighboring states, together totaling $1,587,407.

Funds paid to independent contractors receiving more than $100,000 came from 45 vendors and included $6,209,091 to Ameresco Inc. for construction, $5,857,734 to Bon Appétit for food services, $3,102,564 to Fortis Construction Inc. for construction, $1,871,000 to Otto Harrassowitz for library services, and $1,649,385 to Reimers & Jolivette Inc. for construction.

Looking at Reed's endowment fund specifically, total contributions came to $15,462,173, as compared to $9,214,767 the year prior (up 40%); net investment earnings, gains, and losses came to $96,490,359, compared to $96,958,900 the year before; grants or scholarships paid from the endowment totaled $11,956,648, compared to $11,026,716 the year prior; other expenditures for facilities and programs came to $25,598,805, up from $23,709,891 the year before; and administrative expenses rose to $1,411,775 from $1,343,056 the previous year. This all comes to an endowment end-of-year balance of $863,946,426, up from $790,961,122 at the start of the year. Of that year-end balance, 50% is designated as board-designated or quasi-endowment, 27% as permanent endowment, and 23% as term endowment.

The form also discloses two related entities under Reed's control: the David Eddings Fund LLC, a holding company 67% owned by the college, and Grayco Resources Inc., a rental-activity corporation wholly owned by Reed, which paid the college $35,000 in lease payments during the year. Reed also reported an interest in a charitable remainder trust and a pooled income fund.

For fundraising, Reed used Internet and email solicitations as well as phone solicitations, and worked with three outside fundraising firms during the year: Ruffalo Noel Levitz, Marts & Lundy, and West Wind Consulting Strategies; paying them a combined $284,087 for educational fundraising and campaign consulting services. That’s the 990 in a nutshell. Congratulations on making it this far, you either really love taxes or you’re procrastinating your homework. No judgement either way.