U Michigan funds $433M of its $1.3B research budget out of “institution funds”
For comparison
U Wisconsin funds $344M of its $1.2B research budget out of “institution funds”
U Washington funds $74M of its $1.1B research budget out of “institution funds”
Using a 4% drawdown factor, it would take about $10.8B endowment just to provide those “institution funds” for research
Using a 5% drawdown factor, it would take about $8.7B endowment just to provide those “institution funds” for research
These days, 4% is the more prudent number.
http://www.bestcolleges.com/features/colleges-with-highest-research-and-development-expenditures/