I have been away from this site for a while. I must say that this series of posts is honestly impressive. So many alumni haven't a clue how endowments work. Well done, gentlemen.
A few things come to mind. Most endowments, as stated earlier, are earmarked for specific tasks. Some things (endowing a position, for example, are sexy to donors. Others, like maintaining a building or a field, are not. Over time that deferred maintanence gets more and more expensive. Some endowments are made to start programs and schools foolishly don't require the full cost or underestimate that cost. The professionals talk about budget relieving and budget enhancing gifts. Both have their place.
The SNC situation is startling for its scope. I have to observe, however, that Stevens Point went through a similar reduction process a few years ago. It is possible that not every college can or should offer every major. Someone mentioned the enrollment cliff earlier It is real. A lot of expansion happened before that was observed. Now we see contraction. Wisconsin has seen three schools close since the pandemic: Silver Lake/Holy Name, Cardinal Stritch, and now Northland. All had very small endowments and small student bodies. That trend will continue.
A parent asked for trends. I can only say look at the size of the endowment per student rather than the gross number. Look at the trend of the endowment. Is it growing or declining. at what rate, and so on. Look at the number of students. Is that rising or shrinking?
My wife works in the field of university finance. She is now in the private sector as a consultant. Everyone has these same concerns, and no one has certain answers. Tuition rises, but no one pays full price anymore (well, a few exceptions). Students demand more amenities or they attend elsewhere. The competition is simply nasty.
A few things come to mind. Most endowments, as stated earlier, are earmarked for specific tasks. Some things (endowing a position, for example, are sexy to donors. Others, like maintaining a building or a field, are not. Over time that deferred maintanence gets more and more expensive. Some endowments are made to start programs and schools foolishly don't require the full cost or underestimate that cost. The professionals talk about budget relieving and budget enhancing gifts. Both have their place.
The SNC situation is startling for its scope. I have to observe, however, that Stevens Point went through a similar reduction process a few years ago. It is possible that not every college can or should offer every major. Someone mentioned the enrollment cliff earlier It is real. A lot of expansion happened before that was observed. Now we see contraction. Wisconsin has seen three schools close since the pandemic: Silver Lake/Holy Name, Cardinal Stritch, and now Northland. All had very small endowments and small student bodies. That trend will continue.
A parent asked for trends. I can only say look at the size of the endowment per student rather than the gross number. Look at the trend of the endowment. Is it growing or declining. at what rate, and so on. Look at the number of students. Is that rising or shrinking?
My wife works in the field of university finance. She is now in the private sector as a consultant. Everyone has these same concerns, and no one has certain answers. Tuition rises, but no one pays full price anymore (well, a few exceptions). Students demand more amenities or they attend elsewhere. The competition is simply nasty.