The academic community has developed widespread consensus that trustees must balance two competing "goods" when managing their institution's endowment: first, support of current operations--preferably in a manner that dampens year-to-year volatility--and second, preservation of the endowment to serve future generations. That is to say, trustees…

Recently, colleges and universities have come face to face with the fact that the nonprofit world is engulfed in turmoil and dealing with a decline in public trust. Both the government and the public have soured toward nonprofits, and higher education is not exempt from this crisis of confidence. This article suggests that colleges and…

Many people think of gifts to colleges and universities in pleasant terms, but sometimes things go wrong. When a donor's children sued Princeton University in 2002, development officers, college presidents, and trustees took note. Whoever is right and whoever prevails, the lawsuit illustrates that the feel-good images associated with major gifts…

This booklet offers guidelines for college and university trustees for managing the institution's endowment funds as they seek to balance efforts to grow the endowment for the institution's future with the need to use these funds to supplement current budget needs. Critical policy issues are identified, such as: the endowment's purpose, maximizing…

Fund-raising is one of the college or university governing board's most basic and important responsibilities: The annual fund is the platform from which all other fund-raising activities flow, and the board plays a key role in planning, implementing, and monitoring comprehensive campaigns, which are major efforts, focused on long-range financial…