Wichita ? Endowment funds at Kansas State University increased last year, and Wichita State’s broke even after two years of losses.

Nationally, university endowments earned an average of 3 percent on their investments in 2003, according to a study of 717 schools by the National Association of College and University Business Officers.

Kansas State University Foundation vice president Alan Klug said the foundation’s investments gained 0.63 percent last year, and things look good so far this year.

“We’re seeing in excess of a 10 percent return so far this year, but obviously it could go down,” he said. “Do you have a crystal ball? I’d love to see it go up.”

The study showed that Kansas State’s endowment had dropped 2.4 percent last year, to $168.2 million, but Klug said the school had misreported its numbers in 2002.

University endowments are funds built on private money given by donors. Their growth depends on investments in areas such as the stock market and financial institutions.

The endowments often pay for items such as new buildings and student scholarships and do not include state money.

Patsy Selby, Wichita State’s associate vice president for finance, said the market appeared to be improving, and she hoped to see gains next year.

“As long as the market holds, we should be OK,” Selby said. “If the market takes a significant dip again, that would definitely have an impact.”

Investment gains are only a part of the endowment’s total value. Endowments also reflect new donor gifts and withdrawals of money.

Wichita State broke even on its investments, but the total value of its endowment dropped 1.8 percent to $122.8 million.

In March 2003, the WSU Foundation announced that it would reduce its payout in scholarships, faculty fellowships and building repairs by $2.1 million because of stock market losses on investments. However, several donors stepped up to restore some scholarship money.

Selby said the university would consider restoring those scholarships on a year-by-year basis. She said donor gifts this year have been consistent with past years.

Nationwide, the wealthiest schools showed the largest gains. Harvard, with the nation’s largest endowment, saw it increase by 9.8 percent to $18.8 billion.

In recent years, such funds have suffered steep losses in investments and from inflation.

Last week the Journal-World reported KU’s endowment increased 0.3 percent last year, to $734.5 million.