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Private & Independent Schools
It's not a "generous gift" if the giver expects the recipient to feel bad about receiving it. PP is furious that recipients feel they are peers instead of supplicants - that's the same reason PPs are mad about kids in nice clothes or taking a vacation. They crave a visible marker of their superiority, and if other people aren't feeling inferior to the rich then what is even the point of having money, right? Here's the thing: donors don't give the money to individual students. Donors give the money to the school, which thanks the donor and then spends how it chooses. That postcard or phone call from the school is your thank you note: you already received it. The school uses some of the money for financial aid, which is a tool to manage enrollment, and in doing so it does in fact take into account which students it wants to incentivize to stay. How the FA recipient thanks the school - by volunteering, or donating small amounts for years after graduation, or nothing at all - is between the recipient and the school that gave them the money. |
How is this comparable? If you can afford to fly to LA, you shouldn't be getting FA. |
If someone makes lifestyle choices to not afford the expenses that they create, why should others subsitize them? Those spots should go to true low income. |
We are discussing local private schools, not colleges. None of the local private schools have endowments that are a major funding source of financial aid since they are relatively small compared to universities. Financial aid funds comes from donors and from full pay tuition. |
You need to take this up with your school. You are mad about how the school distributes money. IMO the school distributes money for reasons other than charity, but you can go be on the board or whatever and try to change that since it bothers you. |
Sidwell's endowment is $92.4 million. The endowment pays millions toward financial aid each year. |
That is a pretty small endowment. I hope you were joking. Most of those funds are restricted and can’t just be used for financial aid, even if they wanted to. |
That's not a small endowment, particularly considering it's a day school with small enrollment. It's high per capita. At 5% per year (the suggested draw rate), they're generating between 4 and 5 million. And restricted gifts are a farce and everyone in endowment management and finance knows it. All money is fungible. |
The endowment is tiny, actually. 5% per year would go towards the whole budget. A tiny fraction would go towards financial aid, under the best circumstances. You sort of get it but also need to know, this endowment is not only for financial aid. It has other purposes. |
Do you understand the fungibility of money at all? Any spent endowment returns are money that doesn't need to generated from tuition. |
Sure, but this is a school that primarily serves the full tuition paying families that attend. The top priorities in the operating budget are things like salaries related to faculty and staff recruitment and retention, facilities upkeep and maintenance, etc. Financial aid is nice but they have to budget running an elite private school. |
Most accurate comment on this thread. |
+1 another spoiled brat on aid |
Financial aid is just less revenue. Fewer tuition dollars. Endowment spending is additional revenue. |
Agreed. A mooch. |