Comments on: How endowment donations grow with investment returns

By: Ronni

Ronni — Wed, 02 Sep 2009 15:23:41 +0000

One important difference between Cooper Union and the other colleges mentioned is that Cooper has provided a full tuition scholarship to every admitted student for 150 years. The annual cost is far greater than return on endowment even in the good years and the college is dependent on the generosity of its donors to survive.

By: jonathan

jonathan — Tue, 01 Sep 2009 18:21:17 +0000

I think it’s the joining the crowd mentality. When my school calls, I tell them they don’t need the money but the food bank does. If the person persists – and it’s always a kid at school – then I use the opportunity to teach a lesson about the meaning of charity.

By: Mike

Mike — Tue, 01 Sep 2009 17:47:59 +0000

Charitable Remainder Trusts

By: Sam

Sam — Tue, 01 Sep 2009 17:40:21 +0000

People like winners. The institution may not need the money as badly, but if alumni are aware that the endowment is doing well, they may contribute just to feel like they are on the winning team.

By: JM

JM — Tue, 01 Sep 2009 16:53:15 +0000

might have to do with roi also. if i know that my money (even if it is a drop in the bucket) will either be spent well on education or invested well i would be more willing to donate.

By: ryan

ryan — Tue, 01 Sep 2009 15:58:52 +0000

@sebastian – you beat me to it!

By: dvictr

dvictr — Tue, 01 Sep 2009 15:58:27 +0000

i dont think all the donors care about the endowment as much as the tax deduction

By: Sebastian

Sebastian — Tue, 01 Sep 2009 15:28:17 +0000

While I kind of understand what you’re saying (and I definitely agree with it on moral grounds), the reason is so simple that I can’t believe you’re overlooking it (so maybe I’m missing something):
Endowments grow when stocks do well, which is when rich people make tons of money and are more inclined to give some of it away. End of story.