Reply to Which top colleges have a significant budget deficit? Which ones are red flags?

Forum Index » College and University Discussion

Reply to "Which top colleges have a significant budget deficit? Which ones are red flags?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]
Budget deficit, which was OP’s original question, is much more important. Running a significant budget deficit means the university is not able to operate year-to-year within its means. [/quote]

How does this work with donations? For example, let's say a university usually brings in $100mln in donations. Do they put that assumption into their budget, even if the donatinos are not pledges? If I were to think as a CPA (which I'm not), I would say they should not, since there's no guarantee they'll raise that kind of money. But operationally, it may be OK to assume that kind of money will come in.

In other words, are they assuming donations and they still have a budget deficit?[/quote]

Some gifts are for current use, meaning immediate operating costs, and some (most in terms of dollars) are for the endowment, which gets invested and spun off in small increments over time.

So (at a very simplistic level) yes, they are counting on a certain amount of current use cash each year, as well as a certain amount of endowment income. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics