A discussion of alternative investments for colleges and universities looks at the kinds of investments that comprise this group, rationales for making such investments, the advantages of diversification, risk issues, and ways to reduce risk, including careful selection of managers. Several strategies for getting started in alternative investments…

Flexible endowments are a form of planned giving agreement letting highly motivated donors give endowment-level funding to colleges and universities before they are able to make an outright gift. The donor commits to giving the institution the amount of money an endowment would have generated each year until the endowment principle is fully…

Active asset management has not been consistent or cost-effective for college and university endowment funds. Indexing offers higher returns than median active management, provides more investment stability, is available to small institutional endowments across a broad spectrum of investment asset classes, and at lower cost than active management.…

To increase the value of its endowment, a college or university must manage three separate but interdependent factors: endowment spending rate; investment policy; and fund-raising. Using lessons learned by other institutions, Oberlin College (Ohio) developed strategies for spending and investment that balance the institution's need for income, the…

An endowed chair that is not carefully conceived and fully funded can create problems for institutions of higher education. A well-thought-out policy should guide staff, faculty, and donors concerning level of positions available, minimum donations for each, and titles. Minimum funding figures should be based on predicted endowment income.…

The Teachers Insurance and Annuities Association's (TIAA) College Retirement and Equity Fund is criticized for its low returns and its chief executive officer's recent salary raise. It is said to be in need of additional regulation and policyholder involvement. A TIAA vice president responds that the analysis given is inaccurate and misleading.…

Discussion of investment of planned gifts to colleges and universities identifies three common administrative problems (inappropriate investment strategies, tracking of performance, no performance comparisons), three factors focusing greater attention on planned gifts (fiduciary responsibilities, rapid growth in planned giving, donor…