what is the point of college endowments?

[Anonymous]

Anonymous wrote:

Anonymous wrote:the funds are restricted yet the endowments compound to massive sizes. It seems to be a rainy day fund but not really. And it can't cover most of the operating expenses since funds are restricted

Most of them say oh 90+% are "restricted" so that they can claim they cannot use the money.

In reality, most of the endowment is available to be used if necessary but of course they do not want to use them when they can use OPM (other people's money).

We need to revok their tax exempt status and even threaten to revoke their eligibility to participate in student aid programs. That will get their attention and stop them from playing games.

As long as we do the same with churches. I see no reason for the LDS church to be sitting on an endowment of billions of dollars, or for Lakewood to pull in $50+ million a year as a "non profit", with zero transparency or accountability to anyone outside of their own membership--they don't even have to file the 990 form that other non-profits have to file with the IRS that shows how much goes to salaries, etc.

[Anonymous]

A lot of these schools are using the interest off the endowments to fund programs, even if they don't spend the balance itself. So if they start dipping into the balance to pay for things in the near term, in the long term that impacts their budget because the interest payments are less.

Or at least that's according to an OpEd I read in the Washington Post a few months ago.

[Anonymous]

“We need to revok their tax exempt status and even threaten to revoke their eligibility to participate in student aid programs. That will get their attention and stop them from playing games.” Who is “their”? Every university? Or just the ones that declined to accept you and/or your kid? Yes, let’s make college even more unaffordable and have government dictate what can and cannot be taught. How could that possibly go wrong?