Why raise current funds when the Yale Endowment is so large?
The Yale Endowment ensures that future generations of students and faculty may enjoy resources in a similar proportion to those currently available. In order to accomplish this, Yale maintains a spending rule of roughly 5% on the Endowment. This means that the Yale Endowment would have to grow $20 to equal every $1 in unrestricted support. Moreover, approximately three-fourths of Yale’s Endowment is restricted by agreement with prior donors to specific uses (i.e., upkeep of particular buildings, specific named professorships). With Yale making a concerted effort to keep tuition increases minimal each year, unrestricted gifts from alumni remain one of the primary sources of income for Yale.
