[PalmTree]

Assuming a 5% payout, to fully endow the House settlement payments you’d need a $400 million endowment, so this will be a substantial help, but this will put out about $2.5 million a year for House payments.

I wonder if this will fund the Bradford Freeman Quarterback.

BC

This commitment sounds more like a pledge that will be paid out as expended.  No reason to pay 8% tax on several million dollars per year in earnings. Freeman may be able to do better if he holds onto it.

I would think that the hope would be that this donation can provide significant funding in the early years while the fundraising ramps up and works toward more broad-based support as the program improves.

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I also thought the gift sounded expendable at first but then re-read the announcement which mentioned it'd also support a number of scholies, which tend to be supported by endowments (at least for grad aid gifts/funds I worked with in one of the schools). That got me to wondering if there was another possibility for the $50M gift - that part of the gift is expendable - "seed" money for NILs, program improvements and other immediate needs - and part endowed - to support scholies & other identified purposes best served with steady long term income.  This would be rare, but I'm pretty sure, allowed, by the university's current fund management system/GAAP. Additional/future fundraising would just be targeted according to identified priorities.

[PalmTree]

Assuming a 5% payout, to fully endow the House settlement payments you’d need a $400 million endowment, so this will be a substantial help, but this will put out about $2.5 million a year for House payments.

I wonder if this will fund the Bradford Freeman Quarterback.

BC

This commitment sounds more like a pledge that will be paid out as expended.  No reason to pay 8% tax on several million dollars per year in earnings. Freeman may be able to do better if he holds onto it.

I would think that the hope would be that this donation can provide significant funding in the early years while the fundraising ramps up and works toward more broad-based support as the program improves.

---

I also thought the gift sounded expendable at first but then re-read the announcement which mentioned it'd also support a number of scholies, which tend to be supported by endowments (at least for grad aid gifts/funds I worked with in one of the schools). That got me to wondering if there was another possibility for the $50M gift - that part of the gift is expendable - "seed" money for NILs, program improvements and other immediate needs - and part endowed - to support scholies & other identified purposes best served with steady long term income.  This would be rare, but I'm pretty sure, allowed, by the university's current fund management system/GAAP. Additional/future fundraising would just be targeted according to identified priorities.