Managing the Ups and Downs of the Endowment Roller Coaster

Colleges can't get off this ride, but they can smooth it out.

Markets are way up over the last year, so it must be time for well-endowed universities to return to business as usual. Right?

No. Don't hold your breath for Harvard University to bring hot breakfasts back to its undergraduate dining halls. A close look at the arithmetic of endowment spending rules suggests that the elite private colleges are in for very tough times over the next few years. But if those institutions draw the right lessons, perhaps they will be able to manage better

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