YU’s 2023 Tax Forms Released; Reveals a $33 Million Dollar Deficit
Yeshiva University recorded a more than quadrupled deficit in 2023, according to its most recent Form 990 filing with the Internal Revenue Service (IRS).
YU’s expenses outpaced its revenue for the second year in a row. For the 2023 fiscal year, YU reported a net loss of $33 million in fiscal year 2023 — up from an $8 million loss in 2022.
Form 990, required annually from tax-exempt organizations, provides a public accounting of revenue, expenses and executive compensation. The form is submitted to the IRS each May and typically becomes publicly available shortly after, though it was obtained exclusively by The Commentator prior to publication.
For the 2023 fiscal year, YU reported $394 million in total revenue, up $12 million from the amount recorded in 2022. $285 million came from student tuition and fees. An additional $46 million came from contributions and grants and $4.6 million came from government grants.
A university spokesperson told The Commentator that the form does not fully reflect YU’s financial condition, especially the $33 million net loss.
“Due to reporting rules, the Form 990 may not reflect an organization’s true financial results,” the spokesperson said. “In this case, per Form 990 rules, YU’s significant unrealized investment gains are not included in the Form 990 revenues.”
“If the unrealized investment activity was included in the Form 990 reporting, YU’s net results would not have been as markedly different than the prior year,” he added. “Yeshiva University is continuing to pursue its multi-year strategy focused on reducing deficits through enhanced revenue generation and operating cost reductions.”
YU reported $10.5 million in unrealized gains in 2023. Unrealized gains are increases in the value of assets that haven’t been sold yet. They’re not counted as revenue by the IRS because the profit isn’t guaranteed until the asset sale is actualized.
YU’s expenses totaled $427 million, up from $390.7 million the previous year. The largest expenditure was payroll, with over $130 million paid in salaries and wages. Grants and other assistance totaled over $116 million. YU also reported $11 million in interest payments on outstanding loans, $15 million in security expenses and $5 million in food service costs.
YU generated $3 million in rental income, which is calculated by subtracting rental expenses from gross rents. YU also received $6 million in investment income, which includes dividends and interest from assets and reported a sales gain of $15 million after selling $414 million worth of assets.
YU had over $997 million in assets at the end of 2023, including $3 million in cash, $22 million in savings and $85 million in grants receivable — funds the university has not yet collected but will receive in the future. The university held over $128 million in publicly traded securities, including stocks and bonds, and $352 million in “other securities.” While not specified, this category may include alternative investment vehicles such as private equity, hedge funds or real estate funds.
At the end of the year, YU recorded over $152 million in principal that the university owed to bondholders, in addition to $134 million in secured mortgage debt. YU’s debt-to-equity ratio was 1.03 in 2023, meaning for every $1 of net assets(Equity), there was $1.03 of debt, falling within the normal range for a university.
YU’s endowment reported $466 million in assets at the end of 2023, down slightly from $470 million at the start of the fiscal year. The fund increased by $27 million from investment earnings and $9.8 million from contributions, but $39 million was withdrawn for scholarships and other expenses. YU paid $2.7 million in investment management fees in the same year.
Compensation to current officers, directors and trustees totaled around $5 million. President Berman received $1,074,961 in total compensation, an increase of $178,243 from the previous year.
Photo Caption: Yeshiva University
Photo Credit: Yeshiva University
