Ohio University’s endowment is an aggregation of assets invested by the university to support its educational mission, in perpetuity. An endowment allows donors to transfer their private dollars to public purposes with the assurance that their gifts will serve these purposes for as long as the institution continues to exist. Endowments serve institutions and the public by providing stability over time – the principal of the gift is not spent, and endowments generate earnings year after year that can be spent; leveraging other sources of revenue – they can enhance a financial aid package with college-provided funds; encourage innovation and flexibility, especially for faculty and student research; and allowing a longer time horizon – since endowment gifts keep on giving.

As of the end of fiscal year 2007, the combined endowment for Ohio University and The Ohio University Foundation was approximately $240 million. Although this may appear to be adequate, this figure is low compared to other public institutions.

Ohio University's endowment is professionally managed and is invested primarily in marketable securities, including: International Equities, real estate pools, investment trusts, and other similar investments. The overriding goal of the Investment Policy is to support the Educational Mission of Ohio University and to benefit mankind through commercial development of discoveries created through Ohio University related research.

From the endowment, some $10 million is expended to support scholarships, faculty, and programs (see the Foundation's Spending Policy). Of this, $4 million was expended directly on student scholarships, and from more than 1,500 endowed and non-endowed scholarship accounts. Ohio University seeks to raise the endowment, and hence the revenue stream from it, to support additional student scholarships and a significant increase in the number of faculty chairs and professorships.