ERIC Number: ED496450
Record Type: Non-Journal
Publication Date: 2005
Reference Count: 0
Is Intergenerational Equity Inequitably Conservative?
Riggs, Henry; Warner, Timothy
Association of Governing Boards of Universities and Colleges, Trusteeship v13 n4 Jul-Aug 2005
The academic community has developed widespread consensus that trustees must balance two competing "goods" when managing their institution's endowment: first, support of current operations--preferably in a manner that dampens year-to-year volatility--and second, preservation of the endowment to serve future generations. That is to say, trustees are challenged to achieve what is called intergenerational equity. Typically, donors of endowment funds to support particular programs are assured that their gifts will benefit those programs "in perpetuity", and institutions set aside these endowment gifts in specifically earmarked funds within the total endowment. In this article, the authors pose the question of whether "in perpetuity" promises are sensible, given the current pace of change in society and in research and teaching interests. They contend that trustees who subscribe to the total-return concept of managing endowments may be shortchanging the current generation of students.
Descriptors: Trustees, Endowment Funds, Donors, Educational Finance, Money Management, Long Range Planning, Futures (of Society), Trusts (Financial), Facility Improvement, Financial Policy
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Publication Type: Guides - Non-Classroom
Education Level: Higher Education
Authoring Institution: Association of Governing Boards of Universities and Colleges, Washington, DC.