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I forgot where (Greenspun, I think) but the gist was that non-profits must disburse 5% of their endowment each year but these mega$$$ universities were doing mo
by pchristensen 19y ago
I forgot where (Greenspun, I think) but the gist was that non-profits must disburse 5% of their endowment each year but these mega$$$ universities were doing more like 3.5%-5%. It's worth giving away free tuition to some middle class kids to maintain that status. Some of the endowments (Yale, Harvard, Standford, etc) are so big that they're basically investment funds that run universities in order to avoid paying taxes.
- anewaccountname 19y ago>Some of the endowments (Yale, Harvard, Standford, etc) are so big that they're basically investment funds that run universities in order to avoid paying taxes. If that is what they are, then what is the exit strategy?
- pchristensen 19y agoTo rule the world?
- neilc 19y ago> Some of the endowments (Yale, Harvard, Standford, etc) are so big that they're basically investment funds that run universities in order to avoid paying taxes. I think there is a fundamental difference: the investors in those funds are not making any profit. The managers are taking some fees (although even those are pretty modest, compared to what they could make running their own hedge funds and taking 2+20), but the endowments are either reinvesting all their profits or using them to benefit the university.