TellMeYouLoveMe said:
trey3216 said:
n.
Here's Baylor's problem's from a financial forecast perspective in my illustrious opinion, based on trends in higher education that I see.
- Endowment needs to be $3 bil(US) It's $1.2 bil. This is a much bigger problem than anyone either realizes or will discuss. We have some down years coming. The central problem is the inability of our board to attract and retain endowment dollars. 30 Regents. Only a few can donate and those aren't out raising funds, what's the point??? It gets worse, the people campaigning to be on the board don't have $$ either.
This is the specter for all high profile private institutions with endowments under $3B, and the issue isn't as easy to resolve as some make it out to be since most of the private institutions with large endowments generally have unique endowments.
As examples:
1. Duke University - endowment growth is tied to the The Duke Power Company.
2. Emory University - endowment growth is tied to the The Coca-Cola Company. The gift it received of stock in 1979 was the largest gift to a University in American history at the time.
3. Vanderbilt - endowment growth is complicated. Vanderbilt was founded with a $1M gift in 1873 and the university was largely supported by the Methodist Church until it separated from the church in 1914 (subsequently, the Methodist Church created SMU and expanded support for Emory). Vanderbilt was gifted $340M of Ingram Industries stock in 1998, which was the largest gift to a University in American history at the time.
4. WashU - endowment growth is also complicated in that the University had no backing of a religious organization, single wealthy patron, or earmarked government support - it was created by the business community. From 1983-1987, the University raised $630.5M, which was the largest amount raised in a fundraising campaign at a University in American history at the time. By 1995, it had a $1.72B endowment, and, between 1998 and 2004, it raised $1.55B.
5. Rice - endowment growth is also complicated. Rice was founded with $4.6M endowment in 1904, and, for many years, the endowment was primarily invested in real estate, notes, bonds, and a few blue chip stocks. In the early years, the Rice endowment often acted as a bank by loaning money to churches, clubs, and civic organizations in Houston. Valued at about $1 billion in 1989, the endowment is now valued at $5.3 billion (as of June 30, 2016), and is highly diversified across many asset classes, with both domestic and international exposure.
