In this article, we talked about how endowments can be created, how they grow and decline, the top university endowments, and how to donate to or set up your own endowment. We also explored how poor economic times can lead to trouble for endowments.
While endowments will continue to be a source of revenue for universities and other organizations (like non-profit organizations), the financial crisis should teach us that endowments should not be the only source of revenue for certain aspects of an institution. And the next time you receive a letter from your Alma Mater or other organization to pledge a donation to an endowment, you’ll have a better idea about how that money will be used.