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Education 2 Pages

Public Budgeting



Using the readings and  answer the following questions:

  1. What role do endowments play in the budget in higher education and how do those roles differ by sector (public/private, 2 year/4 year, etc.)?
  2. Who gives to colleges and universities? Why do they give?
  3. What role might foundations play in directing or advocating for specific decisions in higher education? What is your reaction to this?

Title: Public Budgeting
Length: 2 pages (624 Words)
Style: APA


Homework for Week 13

Role of endowments in the budget in higher education

Endowments play an important role in the operations of higher education institutions through helping in its budgeting. Endowment help in supporting of student scholarships, the faculty salaries, research conducted through endowed professorships or chair, and in maintenance and upgrading of the physical plan in the institution. Additionally, endowments also help in support of any part of the institution as long as both the institution and donor come to an agreement. Besides being a symbol of prestige, endowments bring financial stability to the institutions through supporting its budget (Lapovsky, 2007). The roles that endowments play in the higher education institutions differ according to the sector. The private sector as compared to the public sector received less endowment growth. Additionally, the nominal rate of return on endowment returns for the year’s increases with age.


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