An analysis of the rate of return on educational investment for students of accounting is performed to illustrate that, in economic terms, those who work full-time while studying in association-sponsored programs receive a greater return on human capital investment than graduates of two-year colleges. (SK)

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…

Successful college and university investments hinge on an asset allocation strategy capable of meeting the institution's needs for income and growth in principal at the lowest possible risk. Periodic adjustments must be made when there is a shift in the institution's risk tolerance, modification in need for income distribution, and changes in…

Generally, the need analysis system accurately reflects a family's ability to contribute toward funding a college or university education. However, in recent years the system has shown inequities to families in certain regions where home values have increased disproportionately fast. It is concluded that equal assets on paper do not accurately…

A cash flow analysis is charting expenditures and revenues against a factor of time. Explains how school systems can, by charting the congruency of revenues and expenditures carefully, develop an investment program to take maximum advantage of a positive cash position. (MLF)

Despite a trend in successful endowment investment, college governing boards must carefully monitor the institution's endowment spending rate and not treat the endowment as a rainy-day fund. Shrinking endowments leave institutions financially vulnerable; administrators must be required to demonstrate how short-term excess draws on endowment will…

Reports that economist Paul Krugman identifies three types of economic writing. Asserts that the major principles of macroeconomics can be synthesized into "Five Rules of Thumb" which can help to interpret economic news. Presents and discusses these five rules and includes a survey summary of journalists and economists on this issue.…

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.…

A sound investment policy for colleges and universities should address these factors: spending rate, return requirements, time horizon for evaluating fund performance, risk tolerance, asset allocation, delegation of responsibility, investment monitoring, and procedure for amending an investment plan. (MSE)

Trustees can set endowment spending policies to meet current spending needs and protect the future by understanding, forecasting, and managing potential risks and returns. Spending policy should be based on a combination of economic conditions and capital market characteristics related to the institution's investment portfolio. (Author/MSE)

The American Camping Foundation (ACF) supports educational and charitable activities of the American Camping Association (ACA) and provides leadership to ACA's financial development. During 1994, ACF established the Morry Stein Memorial Fund, contributed to the endowment and public awareness campaign, hired an investment management firm, and…

Discusses a study that explored the connection between social investments in higher education and economic production. Reports that government spending on higher education stimulates the private economy better than other government spending. Concludes that higher education expenditures on organized research produce long lasting, favorable effects…

Trends in Teachers Insurance and Annuities Association (TIAA) and College Retirement Equities Fund (CREF) investments as compared with Standard and Poor's 500 stocks are graphed for 1989-92; and increases in college administrator salaries, by institution type and job type, are tabulated for each academic year, 1988-89 through 1991-92. (MSE)

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.…

A mathematical model or project analysis that calculates the financial return from home ownership is described. This analysis illustrates topics such as compound interest, annuities, amortization schedules, internal rate of return, and other elements of school and college mathematics up through numerical analysis. (KR)