According to a report by the Stanford Management Company, Stanford University’s endowment grew to $21.4 billion in the fiscal year ending on Aug. 31, 2014, amounting to a 14.8 percent increase from the former endowment of $18.7 billion in the 2014 fiscal year.

The budgeted payout for the 2015 fiscal year is $1.065 billion, up from $985 million in the 2014 fiscal year. This is expected to cover around 5 percent of total University operating expenses, the rest of which will be paid for by government grants, student tuition and fees and donations among other sources.

Changes in endowment occur based on investment gains and losses, gifts and other funds, minus the payout allotted for University operations. John Powers, CEO of the Stanford Management Company, attributes the gains in the last fiscal year to public and private equity markets and especially venture capital.

Randy Livingston, vice president for business affairs and chief financial officer, said, “This growth will support Stanford’s strategic initiatives, including interdisciplinary research and possible future expansion of the undergraduate student body, while helping to offset reductions in federal research funding.”