'Schools are legally bound to spend the money in the way the donors determined.' Why coronavirus-battered universities may not be able to use their endowments.
as of 2017, said in a statement it"faces an anticipated COVID-related budget shortfall of over $100 million for the coming fiscal year."
"Rarely does a family say if some random pandemic comes up feel free to use it however you wish," he added."It’s usually a long-term gift for a very specific nature." A pedestrian walks through Harvard Yard on the closed Harvard University campus in Cambridge, Mass., April 20, 2020.Steven Bloom, the director of government relations at the American Council on Education, told ABC News that it's"really a misnomer to say an endowment."
For example, Bloom said,"If a fund is set up to fund a chair of chemistry, it can't be used for financial aid or pandemic response." "There is a common misconception that endowments, including Harvard's, can be accessed like bank accounts, used for anything at any time as long as funds are available," the website states."In reality, Harvard's flexibility in spending from the endowment is limited by the fact that it must be maintained in perpetuity and that it is largely restricted."
It added that"roughly 80 percent of endowed funds" are subject to restrictions designated by the donor.A general view of Harvard University campus is seen on April 22, 2020, in Cambridge, Mass.Despite the noise surrounding the handful of schools with massive endowments, the experts urge that the people not forget the massive impact of the pandemic on colleges across the country, especially smaller less-endowed institutions.
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