ERIC Number: ED412850
Record Type: RIE
Publication Date: 1994
Integrating Endowment and Budget Planning. AGB Occasional Paper No. 24.
Curzan, Myron P.; Katz, Louis H.
Association of Governing Boards of Universities and Colleges
This monograph presents recommendations for college and university trustees regarding endowment spending policies. The recommendations include how to set investment goals, assess the reasonableness of investments, and judge when to use endowment funds for high priority needs. A systematic method for determining how much to spend annually from gifts and endowments is offered even though, traditionally, institutions have been reluctant to spend funds from gifts and endowments even though endowments have grown while tuition and other charges have risen. It is proposed that institutions create realistic scenarios for five year periods of both current and future fiscal conditions and that these scenarios include assessment of the physical needs of the campus as well as of revenue potentials. The paper urges analysis of expenses against the growth rate of the administration, scholarship funds, faculty size and course load, operating budgets, rate of salary increases, and adequacy of reserves. Charts show changes in endowment market value from fiscal year 1983 to fiscal year 1982; a sample analysis of an endowment surplus assuming that all gifts and transfers are added to the surplus, that gifts fund new programs, and that transfers are added to surplus. (JLS)
Descriptors: Budgeting, College Administration, Educational Finance, Endowment Funds, Financial Policy, Governance, Governing Boards, Higher Education, Investment, Long Range Planning, Money Management, Policy Formation, Program Administration, Strategic Planning, Trend Analysis, Trustees
Association of Governing Boards of Universities and Colleges. 1133 20th Street NW Suite 300, Washington, DC 20036. Tel: 800-356-6317; Tel: 202-296-8400; Fax: 202-223-7053; Web site: http://www.agb.org
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: Association of Governing Boards of Universities and Colleges, Washington, DC.