<p>I was just wondering how the many colleges in the U.S. use donations to effectively benefit their many programs. For example, how would a $100,000,000 donation be spent? Will a college just put it in a vault and gradually spend the money over the years? Or will the college invest in something and use the interest/dividend/yield/some other esoteric investment term? I wanted to know if colleges make donations self-perpetuating (like the Nobel Prize).</p>
<p>BTW, I am not planning on donating millions of dollars to further benefit my own admission chances.</p>
<p>why dont you read about the doctor from nyu that just donated $105mil to the univ. they use it just like tuition payments; pay teachers, revamp buildings schlarships etc</p>
<p>I read about that. Only a floor for 105 mil…</p>
<p>Anyway, so the college will just use the money until it’s all gone? That seems a little inefficient/expedient…</p>
<p>well you could write up a whole thing that dictates how and where the money can be spent by the school.</p>
<p>Like the founder of Grey Goose who graduated from brown and donated like 100mil and the university had to use the 100mil towards financial aid like he stated. (since he was admitted to Brown back in the day thanks to financial aid)</p>
<p>well actually most donations aren’t towards the general school fund. the donors specify what the money can be used for. donations can be used for a scholarship fund, to endow a professorship or fellowship, be used only for a certain department’s research, to fund the expenses to build a new building (which they usually slap their name onto), etc. donations don’t work like “okay we got $30 million and we’re going to spread it evenly within all the students at school.” the donations are often targeted for the long-term improvement of the school, so that’s why individual students might not necessarily feel the impact of them.</p>
<p>The founder of Grey Goose never graduated from Brown because he had no money for tuition after a year and Brown never gave him any fin aid. Thats why he donated to change this.</p>
<p>oh whoops, all that stuck in my mind from the info session was that grey goose guy at some point went to brown.</p>
<p>Heh yea. They dont like to say it was because of THEM that he never continued at Brown. In an article they said “Due to post war work Sidney Frank left Brown.” IT should be “Because we were pompous pigs we kicked him out” ;). Of course times have changed and soon Brown will be need blind.</p>
<p>So when harvard says they have $18billion in endowments, are they talking about aggregate accumulated donations?</p>