How much does Saint Judes make on their $5 billion reserves a year?
Executive summary
A straight read of St. Jude’s recent audited disclosures shows only modest reported investment gains in its public financial statements—about $10.5 million in investment gains included in “other revenue” for the year ended June 30, 2024—implying an apparent yield of roughly 0.2% on a $5 billion reserve if one compares like-for-like figures [1]. That headline comparison understates the complexity of nonprofit accounting, portfolio composition and how the hospital aggregates realized and unrealized returns in different reporting lines [1] [2].
1. The quick math: reported gains vs. a $5 billion baseline
The most concrete line in the public record is the audit footnote reporting “gains and losses on investments included in other revenue” of approximately $10.5 million for fiscal 2024 (and $7.1 million for 2023) [1]. Measured against a widely cited reserve figure of roughly $5 billion, $10.5 million is about a 0.21% return on that base; using $7.1 million yields about 0.14% [1] [3]. Those are the only explicit, comparable investment-gain numbers surfaced in the available reporting.
2. What the filings and reporting actually show—more than one number, less than one story
St. Jude and its fundraising arm ALSAC have publicly reported reserves in different snapshots—ProPublica and other outlets have cited reserves of roughly $5.0–$5.2 billion as of mid‑2020 and noted subsequent growth, while later disclosures and internal portfolio descriptions suggest available assets and investment commitments in the multi‑billion range [4] [5] [1]. The audited combined financial statements exist [2], and the single explicit investment‑gain line cited above appears in the audit workpapers summarized online [1], but reporters and critics have also focused on reserve-growth, private equity allocations and unspent revenue rather than presenting a single, steadystate “investment yield” figure [4] [6].
3. Why the apparent yield looks low: accounting, timing and classification caveats
The small dollar amounts reported in that one audit line do not necessarily capture the full economic return of the portfolio—investment income can be recognized in multiple places (interest/dividend income, realized gains, unrealized gains, and changes in fair value) and some returns may be recorded net of fees or allocated to different ALSAC/Hospital buckets [1] [2]. ProPublica and other investigations highlighted St. Jude’s shift toward private equity and alternative investments designed to chase higher returns, which by nature produce lumpy, timing‑dependent gains that may not show up consistently year to year [4]. The organization also reports large commitments and pooled structures that complicate a straight assets‑under‑management ÷ investment‑income calculation [1].
4. The organization’s position and strategic context
St. Jude states that it maintains a reserve because its annual operating and growth needs exceed $2 billion a year and it plans multi‑year strategic investments—public materials cite a $12.9 billion six‑year strategic plan and note the reserve is intended to stabilize operations as spending grows [7] [8] [9]. ALSAC’s and the hospital’s filings also emphasize audited GAAP reporting and say reserves are prudential for capital projects and program continuity [8] [2]. Critics, notably ProPublica, contend the reserve grew rapidly and that some of the money was steered into riskier private investments rather than being spent on patients or shared with other charities [4] [6].
5. Bottom line — what can be said with confidence
Based on the explicit audited line items available in public filings, St. Jude’s reported investment gains included in “other revenue” were about $10.5 million for fiscal 2024 and about $7.1 million for fiscal 2023, which — when naively scaled to a $5 billion reserve — imply a very low annual yield in the 0.1–0.3% range [1]. However, that simple ratio omits other investment‑income classifications, unrealized gains, portfolio timing and ALSAC/Hospital allocation practices described in the full combined financial statements, and therefore cannot be taken as a definitive statement of total economic returns without deeper line‑by‑line analysis of the audited statements [1] [2]. Reporters and experts differ on whether the organization’s reserve level and investment choices are prudent or excessively conservative; readers should consult the full audited combined financial statements for a complete accounting [4] [2].