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[quote=Anonymous]Endowments, especially unrestricted endowments, can be used to generate income for current expenses.  Many/all universities also conduct annual fundraising campaigns to solicit additional operating funds.  The question is how those funds are actually being used.

Sometimes they are applied to infrastructure projects only tangentially related to core academic functions, e.g., athletic facilities.  Sometimes they are applied to pay some or all of the tuition and fees for students who otherwise would opt for less expensive institutions or who would borrow money to pay the costs at the school they prefer to attend.  Such funds are sometimes applied to boost the compensation of, and consequently attract and or retain teaching, research, or other staff who might seek other employment if not paid at high levels.

Endowment principal is not usually invaded; income is usually all that is used.

As noted, some institutions have plenty of endowment income.  They just choose to apply it to "nice to have" purposes because other funding streams exist - those annual fundraising campaigns, federal grants, tuition actually paid by some students.  Many schools don't want to require more students to pay their actual cost of attendance, as they fear that doing so will result in less "diversity and equity".  Students will be obliged to attend schools they can afford.

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