Saturday, November 7, 2015

University Endowment

Endowment in the vernacular can refer to nay asset of substance that allows a person, organization or country to excel in their pursuits of business or leisure. For example, economists specializing in international trade describe a country as having an ‘endowment’ of abundant land for agricultural crops.

Colleges and universities with stronger endowments are more stable financially, are more self-sufficient and are able to generate revenue to support both new and existing programs and students scholarships.
Harvard University
Money and property (usually derived from contributions and grants to the organization’s endowment fund or from transfers of the organization’s resources to the fund) are placed in and invested within the fund, some or all of the income of which is used by the organization to satisfy costs of operations, cover capital expenditures and/or fund programs or special projects of the organization.

In general, endowment gifts can be classified as one of three types:
*True endowment
*Term endowment
*Quasi endowment

It is a generally accepted convention that college and university endowments should be invested and managed conservatively, in a manner similar to trusts and pension funds.

For years, the leading university endowment fund in the United States has been that of Harvard University which exceeds $30 billion.
University Endowment

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