Sure, they’re managed investment funds. You couldn’t run a university just on the income from bank interest. Also, most endowment funds are not unrestricted. Donors often attach strings to what can be done with the money; it’s donated for specific purposes. Harvard is even more restricted in a way because each school has its own endowment. FAS (most undergraduates) has the biggest, but they can only spend their own money.
Also, income from the endowment doesn’t cover the whole cost of operating the university.
Harvard is actually managing a little better than they did in 2008. When Larry Summers was president, he made some skeezy deals to finance the Allston campus expansion, and it went way bad when the market collapsed. Now they do have some emergency cash set aside.
Also, income from the endowment doesn’t cover the whole cost of operating the university.
Harvard is actually managing a little better than they did in 2008. When Larry Summers was president, he made some skeezy deals to finance the Allston campus expansion, and it went way bad when the market collapsed. Now they do have some emergency cash set aside.