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If I donate 100 million to Penn for the express purposed of building a new architecture building and Penn invests that money and earns 20% on it is that 20% und
by dopamean 3y ago
If I donate 100 million to Penn for the express purposed of building a new architecture building and Penn invests that money and earns 20% on it is that 20% under the same restrictions as the principal?
Also, it seems odd that if the funds are restricted to be used for a specific purpose that they university is allowed to gamble those funds in the market. Something about this doesn't add up.
- NovemberWhiskey 3y ago>If I donate 100 million to Penn for the express purposed of building a new architecture building and Penn invests that money and earns 20% on it is that 20% under the same restrictions as the principal? It would depend on the facts of the gift; but my understand is that if you give money to be used for a specific purpose, it is restricted to be used for that purpose. There are also gifts that do not allow the principal to be spent; only returns on it. The gift is given in the expectation that it will be invested. Your use of "gambled in the market" is quite loaded; I don't think that most people would regard the activities of these investment officers that way.
- bhickey 3y ago> I don't think that most people would regard the activities of these investment officers that way. I recall my university's chief investment officer announcing that the university could tolerate riskier investments after the endowment topped $4bn. She promptly lost nearly $800m.
- NovemberWhiskey 3y agoDoes this lead to a conclusion, or a disagreement with my point, or is your goal merely to present an anecdote?