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What is the difference between restricted and unrestricted endowment and what proportion of the endowment does each category constitute?

April 26, 2017category constitute difference endowment proportion unrestricted

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What is the difference between restricted and unrestricted endowment and what proportion of the endowment does each category constitute?

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In the simplest terms, restricted endowment funds are given by donors for a particular purpose (such as financial aid to students, library book acquisitions, lectureships, or endowed faculty positions) and the money in that fund can only be used to further that purpose. Unrestricted funds are given to the college to further its mission, but the college has the freedom to determine what priorities these funds will support. Of the total endowment, about 68% is in restricted funds, and 32% in unrestricted.