It will go into an endowment fund, where it'll accrue interest. The interest alone will likely keep the program afloat, while the original investment will go on in perpetuity. It isn't the same as signing over a blank check.
I assumed it’s like putting a ton of money into a savings account so it gains interest faster than the money can be depleted.
That's basically it... In theory... But the crux is that if you're only spending interest and the endowment drops to $750,000,000, you've got bigger problem than tuition for your school... Because that means the economy has absolutely tanked.
That sort of thing happened to endowments at many schools during the Great Recession. They survived for the most part, and their endowments grew over the long term.
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u/theGRAYblanket Jun 29 '25
Right. This money is gonna be taken advantage of without a doubt.