susukivasanth wrote:
Regenerate wrote:
susukivasanth wrote:
NWU must be really going through tough times
https://www.chicagotribune.com/coronavi ... story.htmlPosted from my mobile deviceThey're projecting to see an operating deficit that is less than six months of interest income on their endowment.
I see that but why would they take salary cuts and furlough people. Is the endowment so sacred that they won't touch that?
Yes. In many ways it is too sacred.
Most people will quit going out to eat before spending their retirement money.
At a corporation as big as Northwestern University, it's easy to imagine how there'd be a good sized number of people who are habitually underperformed in their role and need to be given an opportunity to work elsewhere.
To a college or university, their endowment is their retirement fund. Spending PRINCIPAL out of that fund (not merely interest or dividend income) is a huge deal and, pretty much, is too be avoided in all but the most dire of circumstances.
I do expect many small schools might close their doors for good ... and big schools will have to spend principal out of their endowments ...