Wealthy donors are threatening to withdraw financial support from universities due to political protests.

• Robert Kraft, a Columbia University alumnus, expresses discomfort in supporting his alma mater.
• Donors' contributions are significant but not the sole financial pillar for universities.

Endowments play a crucial role in the financial health and future investment of universities.

• Endowments are large funds collected from donations, invested for future university needs.
• Schools typically withdraw a standard 5% from endowments annually to balance between growth and current needs.

Large endowments allow universities to offer diverse experiences and maintain socioeconomic diversity among students.

• Institutions like Northwestern use endowments to fund a range of student activities and maintain a diverse campus.
• Schools with substantial endowments rely less on tuition and private gifts, providing financial stability.

Schools with smaller endowments are more vulnerable to market changes and depend heavily on tuition.

• Hamilton College's revenue is significantly reliant on tuition despite its large endowment.
• Schools without large endowments focus on attracting full-paying students and are less diverse socioeconomically.

The impending demographic shift with fewer high school graduates presents a challenge for tuition-dependent schools.

• The enrollment cliff, partly due to lower birth rates, will affect local liberal arts colleges the most.
• Schools that draw students from a wider geographic area, like Hamilton College, may be better protected.

Public universities have experienced a significant decline in state funding, leading to increased dependence on tuition.

• The University of California system has seen state funding decrease from nearly 20% to less than 10% of revenues since 2001.
• Public universities are raising tuition and recruiting out-of-state students to make up for funding shortfalls.

In response to financial pressures, public universities are adjusting their admissions and tuition strategies.

• California has capped out-of-state admissions to ensure more in-state students can attend.
• Tuition and fees have become a larger part of the revenue for the University of California system.

Privatizing public universities by increasing tuition without sufficient aid risks turning them into bastions of privilege.

• Privatization efforts could lead to a lack of affordability and reduced accessibility for less wealthy students.
• The growing financial gap between institutions may result in unequal educational opportunities.