Rod: A creative force, blending words, images, and flavors. Blogger, writer, filmmaker, and photographer. Cooking enthusiast with a sci-fi vision. Passionate about his upcoming series and dedicated to TNC Network. Partnered with Rebecca Washington for a shared journey of love and art.
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Rod: A creative force, blending words, images, and flavors. Blogger, writer, filmmaker, and photographer. Cooking enthusiast with a sci-fi vision. Passionate about his upcoming series and dedicated to TNC Network. Partnered with Rebecca Washington for a shared journey of love and art.
Prospective students tour Georgetown University’s campus in Washington in 2013.
AP Photo/Jacquelyn MartinTodd L. Ely, University of Colorado DenverWith the Trump administration seeking to cut federal funding for colleges and universities, you might be wondering whether the endowments of these institutions of higher education might be able to fill those gaps. Todd L. Ely, a professor of public administration at the University of Colorado Denver, explains what endowments are and the constraints placed on them.
What’s an endowment?
Endowments are pools of financial investments that belong to a nonprofit. These assets produce a revenue stream, typically from dividends, interest and realized capital gains. The funds endowments hold usually originate as charitable donations made to support an institution’s mission.
In most cases with higher education endowments, this wealth, which helps buoy a nonprofit’s budget, is supposed to last forever.
Contributions to endowments are tax-deductible for donors who itemize their tax returns. Once these funds are invested, they grow generally tax-free. But beginning in 2018, the federal government imposed a 1.4% excise tax on dozens of higher education institutions with relatively large endowments.
Few colleges or universities have a single endowment fund.
That’s because the donors who provide gifts large and small to the school over the years direct their donations to different funds reserved for specific purposes.
Harvard University’s endowment, worth $53.2 billion at the end of its 2024 fiscal year, for example, consists of roughly 14,600 distinct funds.
All told, money distributed from endowments covered more than 15%, on average, of college and university operating expenses in 2024. Some of America’s institutions of higher education, however, lean much more heavily than that on their endowments to pay their bills.
People pose for photos in front of the iconic Tommy Trojan statue on the campus of the University of Southern California in Los Angeles in 2019.AP Photo/Reed Saxon
How do endowments influence higher education?
Endowments can serve multiple purposes.
In 2024, nearly half of all higher education spending paid for with endowment revenue funded scholarships and other kinds of aid for students, while almost 18% supported academic programs. Just under 11% paid for professors’ compensation, and almost 7% helped pay for running and maintaining campus facilities.
More broadly, endowments can help shield schools from financial hardships and maintain their long-term reputations.
When they’re set up to carry on in perpetuity, endowments must benefit both current and future generations. So when donors give to an endowment, they are arguably investing in the long-term viability of the institution.
This long-term focus suggests that endowments aren’t just rainy-day funds or financial reserves.
Why can’t endowment funds be spent freely?
At the end of the 2023 fiscal year, U.S. higher education endowments held a total of more than $907 billion. That is a lot of money, but it’s still less than the combined wealth of America’s five richest people.
Like individual wealth, endowment assets are heavily concentrated in the U.S.
Many colleges and universities have small or no endowments. Nearly 60% of them total less than $50 million. The top 25, which includes several public universities in states such as Michigan and Texas, account for more than half of all endowment assets.
And even when schools have large endowments, the individual funds that compose them are bound by a wide array of restrictions. Some of that money can be spent however the school would like. Other funds are dedicated to a clearly defined purpose.
When endowment funds are restricted, the school gets little discretion in how to spend them.
At Harvard, for example, there’s a Hollis Professorship of Divinity at Harvard University. It was established in 1721 through a gift from a London merchant. Based on the terms of that long-ago donation, the earnings and growth of the donated funds continue to honor the donor’s intent by supporting the position, regardless of what the university needs.
Alternatively, endowments may receive donations that are temporarily restricted. Known as “term” endowments, the assets they hold can be used once donor-imposed conditions are fulfilled.
Institutions frequently designate some of their unrestricted funds as “quasi” endowments, usually earmarked for specific strategic purposes. This board-designated quasi-endowment does not carry legal restrictions and can be spent more freely.
About 40% of higher education endowment assets are subject to permanent restrictions, 30% are temporarily restricted, and 29% are reserved for quasi-endowment use.
People walk past the Ray and Maria Stata Center on the campus of the Massachusetts Institute of Technology in 2019.AP Photo/Steven Senne
How are decisions over endowment funds made?
The decision-making authority over endowments typically rests with a college or university’s governing board. Those boards establish endowment payout policies that guide how much of the endowment and its earnings can be spent each year, while attempting to preserve the purchasing power of the investments over the long term.
The policies take expectations regarding investment earnings and inflation into account, while smoothing annual payouts by using a percentage of the value of the endowment over multiple years as opposed to a single point in time. This payout tends to amount to about 5% of all assets. That share averaged 4.8% in 2024.
U.S. institutions of higher education spent nearly $35.5 billion derived from their endowments in the 2023 fiscal year.
Colleges and universities that depend more heavily on their endowment funds to cover their current obligations may choose to invest more conservatively. In recent years, many higher education endowments have obtained more complex investments, such as private equity, real assets and stakes in hedge funds.
Endowments of nonprofit colleges and universities are also governed in most states by a state law known as the Uniform Prudent Management of Institutional Funds Act. This law encourages cautious investments and restrained spending.
These restrictions mean that annual payouts are generally modest. That leaves endowments ill-equipped to respond to abrupt and large shifts in their funding needs.
The John F. Kennedy School of Government, commonly referred to as Harvard Kennedy School, is a member of The Conversation U.S.Todd L. Ely, Associate Professor of Public Administration; Director, Center for Local Government, University of Colorado Denver
This article is republished from The Conversation under a Creative Commons license. Read the original article.
Veggies forVeterans Phoenix VA, May 14, 2025 Image Credit: Rod Washington
In a powerful display of community support and health advocacy, the Phoenix VA Hospital hosted another landmark Veggies for Veterans event yesterday, May 14, 2025. This milestone event, marking eight years of service since April 2017, continues to transform lives through the collaborative efforts of Gregory’s Fresh Market and the VA Health Care System. Yesterday’s distribution saw 600 veterans receiving fresh produce at the Carl T. Hayden VA Medical Center, adding to the impressive total of over 22,000 veterans served since the program’s inception.
“This is a way to thank them for their service,” explains Diana Gregory, founder of Gregory’s Fresh Market. This sentiment resonates deeply with veterans like Bobby Smith, who shared, “This helps with my wife and my budget because food is getting more expensive. It really has added to our diet, we were able to have healthy food.”
Yesterday’s distribution featured carefully curated bags filled with seasonal favorites including apples, oranges, zucchini, potatoes, bell peppers, and onions. The program, funded through Gregory’s 501(c)(3) organization and supported by key sponsors including Arizona Complete Health, Peddler’s Son, and Fry’s, has become a model for veteran support programs nationwide.
What makes this initiative particularly impactful is its dual benefit: while veterans receive access to fresh, nutrient-dense foods, local farmers and suppliers also gain support through the program’s commitment to sourcing produce locally. This approach creates a sustainable cycle of community support that extends beyond the immediate benefits to veterans.
The dedication of participants like David Eberly, who waited since 6 a.m. to participate, demonstrates the program’s significance to the veteran community. Phoenix VA Nurse Practitioner Isabel Kozak, who has witnessed the program’s impact firsthand, noted, “I just absolutely love being able to hear Veterans’ stories about how this event is so helpful to them.”
Corporate volunteers and VA staff worked side by side to distribute the produce, creating an atmosphere of genuine care and community engagement. Veterans don’t need to be enrolled in VA care to participate, making the program accessible to all who have served. This inclusive approach aligns perfectly with President Lincoln’s promise to care for those who have served our nation’s military, their families, caregivers, and survivors.
The Future for Veggies for Veterans
The Veggies for Veterans program continues to grow, with regular distribution events scheduled throughout the year. For veterans interested in participating, the program will return to the Phoenix VA Hospital on September 10 and November 5, 2025. This consistent presence ensures that veterans have reliable access to fresh, healthy food options while fostering a stronger sense of community support.
As this initiative enters its ninth year, it stands as a testament to how community partnerships can create meaningful impact in the lives of those who have served our country, one bag of fresh produce at a time.
STM Daily News is a vibrant news blog dedicated to sharing the brighter side of human experiences. Emphasizing positive, uplifting stories, the site focuses on delivering inspiring, informative, and well-researched content. With a commitment to accurate, fair, and responsible journalism, STM Daily News aims to foster a community of readers passionate about positive change and engaged in meaningful conversations. Join the movement and explore stories that celebrate the positive impacts shaping our world.
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In an inspiring display of community spirit this Wednesday, something extraordinary unfolded at the Veggies for Veterans program in Phoenix. A group of seniors, driven by their desire to give back, took the initiative to volunteer and serve their local veterans – creating a beautiful moment of intergenerational connection and purpose.
The impact was immediate and profound. Not only did these senior volunteers find fulfillment in their service, but they unanimously expressed their eagerness to return, demonstrating how Veggies for Veterans serves a dual purpose: addressing food insecurity while creating meaningful social connections that combat loneliness and isolation.
Diana Gregory, founder of Diana Gregory Outreach Services, has built this remarkable program in partnership with the Carl T. Hayden VA Hospital of Phoenix. Through Gregory’s Fresh Market and initiatives like Veggies for Veterans, the organization provides critical access to fresh produce three times a year, serving thousands of veterans in our community.
The program’s success highlights a growing need in our community. As food insecurity continues to affect our veteran population, Diana Gregory Outreach Services stands at the forefront of addressing this crisis. The organization delivers over 30,000 bags of fresh fruits and vegetables annually to seniors and veterans, making a tangible difference in their lives.
But perhaps what makes Veggies for Veterans truly special is how it creates a ripple effect of goodwill. When seniors step up to serve veterans, they’re not just distributing fresh produce – they’re building bridges, fostering connections, and proving that everyone has something valuable to contribute, regardless of age.
As this week’s heartwarming event showed, Veggies for Veterans is more than a food distribution program – it’s a catalyst for community building, a source of purpose for volunteers, and a beacon of hope for those it serves. The urgent need for expanded support continues, but with each new volunteer and every bag of fresh produce distributed, we’re taking steps toward a healthier, more connected community.
To support or learn more about this vital initiative, consider reaching out to Diana Gregory Outreach Services, a 501(c) charitable organization based in Phoenix, Arizona, and be part of this growing movement of community service and care.
Related Link:
Veggies for Veterans: https://dianagregory.com/veggies-for-veterans/
STM Daily News is a vibrant news blog dedicated to sharing the brighter side of human experiences. Emphasizing positive, uplifting stories, the site focuses on delivering inspiring, informative, and well-researched content. With a commitment to accurate, fair, and responsible journalism, STM Daily News aims to foster a community of readers passionate about positive change and engaged in meaningful conversations. Join the movement and explore stories that celebrate the positive impacts shaping our world.
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Todd L. Ely, Associate Professor of Public Administration; Director, Center for Local Government, University of Colorado Denver
This article is republished from The Conversation under a Creative Commons license. Read the original article.
