"Colleges in most states have, since a national change made in 2006, been granted the authority to spend endowment money from individual funds whose value has fallen below what it was when originally made," Inside Higher Ed reports. "A new survey suggests that institutions have taken advantage of that additional flexibility. The study, by the Association of Governing Boards of Universities and Colleges, the National Association of College and University Business Officers, and the Commonfund Institute, finds that as of the end of 2008, 38 percent of survey participants' total endowment funds were 'underwater,' or now valued below the value of the original gift."

You can read the complete July 1, 2009 Inside Higher Ed article on-line.

Additional Media Coverage

Colleges Are Tapping Restricted Endowment Funds, Survey Finds The Chronicle of Higher Education

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