Large University Endowments and Investment Fees Under Fire

NPQ has reported on large university foundations in the past, with an emphasis on the debate over whether public policy should be changed to force more endowed funds to be disbursed to fund scholarships and salaries. The largest U.S. universities have billions in endowments (and growing); meanwhile, tuitions continue to rise, and the nation’s student loan debt now exceeds its total credit card debt.

Victor Fleischer, a law professor at the University of San Diego, adds another issue to the discussion: huge fees paid by large university endowments to investment firms. These annual investment fees sometimes far outstrip an endowment’s yearly support for tuition, scholarships, and prizes.