"It'll restore our spent endowment and establishes a scholarship fund for families that need tuition aid," Ms. Campbell said.
Still, Mr. Grassley said he hoped Congress would continue to consider imposing mandatory requirements on how much universities must spend from endowments.
On Thursday, the Senate Finance Committee, concerned about the rising cost of higher education, requested data from the nation's wealthiest colleges on several issues, including how they spend their endowments.
Dr. Bharucha said that in recent decades, the school had resorted to unsustainable practices to support its operations — like selling assets and dipping into the principal of its endowment, which stood at $577 million in mid-2010 — rathan than just spending the endowment's earnings.
And while spending the endowment would seem an easy solution, most foundations, charities and cultural organizations decline to dip into their endowments, citing fiduciary responsibility.
Hanover's Board of Trustees also has approved spending extra endowment funds to renovate our freshman housing and upgrade student athletic facilities.
Nearly all nonprofit institutions with an endowment spend some of it each year; five per cent or less is considered prudent.
Note that if the fine were zero, no individual except k = 1 could pass the dominance test (p 1 ≥ p k for all k), and the OPMA would spend the entire endowment on the most productive individual (or on a subset of the most productive individuals if this designation not unique).
NCRP adverts to the possibility that low returns on mission investments, together with a high payout, would require a foundation to spend down its endowment.
That is to say, it may be highly strategic for a foundation to partially spend down its endowment now to solve a timely problem, leaving a smaller foundation to exist in perpetuity.
