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.
How extraterrestrial tales of aliens gain traction
The narrative explores humanity’s intrigue with extraterrestrial entities, juxtaposing evolutionary processes with claims of alien interventions, ultimately emphasizing the need for scientific evidence over fantastical stories. Aliens!
One night, upon returning to the cave that his tribe calls home, the monkey-humanoid Moon-Watcher finds a strange crystal object, a kind of monolith that fascinates him at first, but then quickly loses his interest when he discovers that it is not edible. Soon after, the true purpose of the monolith is revealed to be none other than penetrating the minds of our ancestors to induce new abilities that, over time, will cause the development of an intelligence capable of creating new technology.
Many readers will recognise this scene from the novel 2001, A Space Odyssey, by Arthur C. Clarke, and the film of the same name, directed by Stanley Kubrick. It almost goes without saying that the crystal monolith in question is the work of an extraterrestrial civilisation that observes life on other planets and “experiments” on them to encourage the development of intelligence in as many parts of the cosmos as possible.
Seeking simple answers to complex questions
Understanding how we, as a species, came to be intelligent is one of the great enigmas of evolutionary study. Small mutations, followed by a process of natural selection to choose the most advantageous, seems too slow a process for structures as complex as the human nervous system or brain to emerge. It is this very complexity that allows millions of neurons to communicate with each other, resulting in the emergence of qualities such as the ability to respond voluntarily to environmental stimuli, or to ask questions about the very nature of humankind and the universe.
This has always been the case, in all human cultures. A classic example would be attributing atmospheric events – thunder, lightning, floods – to the wrath of God. These ideas came about before humans had ever left the ground, so it is no surprise that we turned our eyes even higher – to extraterrestrials – to explain other phenomena that we could only observe once travelling at high altitudes became part of our daily lives.
The allure of the unknown
The possibility that we might have been visited by beings from other worlds has always fascinated us. The element of mystery, of the unknown, only makes it more interesting.
Any phenomenon is made all the more enticing when it seems it is being covered up or hidden for secretive reasons. The attractiveness of conspiracies often leads people towards ideas which have no scientific basis, such as the belief that the Earth is flat, that humans never set foot on the Moon, or that vaccines can control our behaviour.
Even though these ideas have repeatedly been shown to be untrue, their rapid dissemination through social media, using simple, blunt language that appeals to emotion over logic, makes them very powerful weapons.
The supposed “proof” of alien visits to our planet ranges from specific Bible passages to ancient stone carvings portraying creatures or objects that may appear to be aliens or spacecraft. The latter often take the form of flying saucers.
However, we cannot forget that humans have always created imaginary creatures that resemble them and attributed them with magical powers. When imagining Gods, humans have given them a human appearance, and almost always imagined them as living in the sky.
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When we look at these representations through modern eyes, we associate them with extraterrestrial beings or structures, when in fact they could be referring to a range of different things.
What we can be certain of is that the more we explore our skies, the more likely it is that we will encounter phenomena that we cannot explain. However, this does not mean that they are extraterrestrial. Past experience has shown us that most of these events can be attributed to optical illusions, spy or weather balloons, space junk, or even satellites that we ourselves have made.
In Spain, UFOs were a hot topic between the 1960s and the 1980s. In this era, everyone knew someone who was convinced that they had seen a UFO. This even reached the point where an exoplanet, called Ummo, was made up. It was populated by a more advanced civilisation than ours who made contact with people on Earth. In the letters these aliens supposedly sent, the ‘Ummites’ explained concepts such as genetics and cell structure.
The Ummo hoax was even linked to the creation of a paedophile ring, which should make us reflect on the harmful consequences that the spread of fabricated news stories can have.
Can we deny the possibility that intelligent alien civilisations exist?
The answer, of course, is no. The universe is immense, and it is more than likely that circumstances similar to those which led to the appearance of life on Earth have been repeated on other planets. But there is a huge distance (literally and figuratively) between acknowledging the existence of these creatures and considering the possibility that they might have visited us.
Exoplanets, also known as extrasolar planets, are extremely far away, and we are limited by the speed of light which, as proven by Einstein, is the maximum possible speed at which anything can travel. Therefore, the journey to even a “nearby” exoplanet would take thousands of years. Maybe a civilisation more advanced than ours could find a way to do it faster, but not to the point of it being something easy or commonplace.
In any case, if the remains of alien life or spacecraft are stored away somewhere, why are they not being shown to us? Scientists would jump at the chance to analyse this organic matter to find out how it is structured, how it metabolises energy, or what molecules it uses to store genetic information.
Until there is proof, this is not a question of science, but rather, of stories. Stories can be very entertaining, but these kinds of stories do not help us to build a more accurate or helpful view of the world.
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Little Woodrow’s Launches 2026 Turtle Racing Season With ‘TurtleVerse’ Theme
Little Woodrow’s has launched its 2026 turtle racing season with a new TurtleVerse theme, bringing weekly Thursday night races, themed turtle competitors and a new loyalty program to locations across Texas.
Little Woodrow’s Opens 2026 Turtle Racing Season Across Texas
Little Woodrow’s is bringing back one of its most recognizable Thursday night traditions with the launch of its 2026 turtle racing season, this year under a new retro sci-fi-inspired theme called TurtleVerse. The season officially began March 5 and runs weekly through Nov. 19 at participating locations in Houston, San Antonio, Lubbock, Austin and, later this spring, Frisco.
The long-running event, which started in Midtown Houston nearly two decades ago, has grown into a signature piece of the Texas neighborhood bar chain’s identity. This year’s TurtleVerse concept adds a comic-book-style multiverse angle to the races, pairing the usual crowd energy with themed branding and a lineup of turtles carrying names like Turtle Swift, Shellvester Stallone and Timothée Shellamet.
Woody’s Brands President Ray Risley said the company wanted to build on one of Little Woodrow’s most popular traditions by leaning into both nostalgia and humor. In addition to the themed races, the company is also introducing a new Turtle Journey loyalty program, allowing guests to check in, earn points and redeem rewards throughout the season.
Little Woodrow’s said races begin at 7 or 8 p.m., depending on location. Fans can find schedules, turtle bios and loyalty program details at Little Woodrow’s website.
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Prepared and Aware: 4 Travel Safety Tips for Your 2026 Getaway
Travel remains a priority for many Americans, especially during warm seasons. To ensure enjoyable and safe trips, travelers should research destinations, use travel advisors, and consider insurance. Sharing itineraries with loved ones adds safety. Popular destinations like Mexico are open, but travelers should stay updated on advisories and precautions.
(Feature Impact) From beach escapes to international adventures, travel is still a top priority for millions of Americans, particularly during the warm-weather seasons. However, in light of evolving global events – and the changing travel advisories that often accompany them – preparation and awareness are key.
Travel planning should be exciting, and being a prepared traveler ensures you can focus on making memories rather than managing surprises. That means doing your homework before you go, remaining cautious and aware while you’re there and being ready to respond should the unexpected happen.
As you pack your bags, the experts at ALG Vacations recommend taking proactive steps like these to stay informed, protected and confident no matter where your adventures take you.
Research Your Destination
Familiarize yourself with local customs, transportation options and any travel advisories tied to your destination, which often vary by region, not country. If you’re heading abroad, consider enrolling in the Smart Traveler Enrollment Program (STEP) offered by the U.S. State Department. The free service provides real-time, destination-specific updates about health, weather, safety and security, and makes it easier to contact you in case of an emergency.
Consult with a Travel Advisor
One of the most effective safety measures is working with a professional travel advisor. Advisors monitor travel advisories in real time, understand geographic nuances and regional differences within destinations and can provide verified information directly from destination partners. If plans need to change, your advisor can recommend alternatives and help manage rebooking options.
Consider Travel Insurance
Preparation also means protecting your investment. Unexpected events – from flight cancellations and changes in advisory level to medical emergencies and weather delays – can happen at any time. Travel insurance adds an extra layer of protection, helping cover eligible expenses and providing peace of mind. If you elect coverage, review policy options carefully to understand what is and isn’t covered by your plan.
Share Your Plans with Someone at Home
Before departing, provide a trusted friend or family member with copies of your itinerary, lodging information and contact details. This ensures someone knows where you are and how to reach you in case of an emergency, flight disruption or unexpected change in plans.
To find more tips, or to connect with a travel advisor and benefit from personalized expert guidance on your spring excursion, visit TravelAdvisorsGetYouThere.com.
Frequently Asked Questions About Safe Travel to Mexico
Many of Mexico’s popular beach destinations – including Cancun, Riviera Maya, Costa Mujeres and Tulum – are operating as normal and welcoming visitors under a Level 2: Exercise Increased Caution advisory, which encourages travelers to remain aware of their surroundings and follow standard safety precautions, but does not discourage travel.
Stay informed of changes to advisory levels through official updates from the U.S. Embassy and the STEP program and consider these questions frequently asked to ALG Vacations travel advisors when planning your trip.
Is it safe to travel to Mexico right now? Travelers should follow the U.S. State Department’s official guidance. If visiting a destination in Mexico under the Level 2 advisory, which is a common advisory level globally that also applies to destinations such as France and Italy, exercise standard travel precautions.
Has the Puerto Vallarta shelter-in-place order been lifted? Yes, the shelter-in-place guidance affecting Puerto Vallarta has been lifted. However, travelers should regularly monitor official sources for updates or changes.
Are Cancun, Riviera Maya, Costa Mujeres or Tulum experiencing disruptions? Airports in Cancun, Cozumel and Tulum are operating normally. Hotels, cruise ports and tourism services are also fully operational.
Are Los Cabos operations impacted? Los Cabos tourism operations remain fully operational, including airport activity, ground transportation and hotel and resort operations.
What are some alternative destinations? For those who may be exploring alternative plans, consider these popular spring destinations both domestically and abroad:
Caribbean destinations including Jamaica and the Dominican Republic
U.S. warm-weather destinations like Hawaii and Florida
European island destinations such as Mallorca, Spain or Corfu, Greece
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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.
