March 31, 2000

Endowment Payout Rates Are Too Stingy

By GLENN C. ALTSCHULER

At just about every faculty meeting at Cornell University, where I teach, someone asks why the spectacular growth of the endowment -- which more than doubled during the 1990's, and now approaches $3-billion -- has not led to generous outlays for academic programs and faculty salaries.

In reply, a dean, provost, or president explains, with weary patience, that although the endowment has in fact had a significant impact on the operating budget, donors often

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