The greater the reliance on endowment income, the more fluctuations in that income will affect the institution.
Market volatility has severely tested many institutions, causing them to revisit their endowment spending practices. While institutions vary in their approach and practice, all are seeking essentially the same two objectives: long-term preservation of the purchasing power of the endowment and predictable budget support.
In this paper, Fred Rogers, Vice President and Treasurer of Carleton College, analyzes the NACUBO-Commonfund Study of Endowments® findings and provides a brief primer on endowment spending, budgeting and accounting practices at institutions of higher education.
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