If you’re an education enterprise, you can’t just keep raising tuition. Endowments relieve your dependence on tuition revenues. Additionally, strong endowments offer more scholarships and financial aid, which leads to better recruitment and retention of the most qualified students.
If you’re a foundation, you’re a leader in your community and working to make the world a better place. It’s great to have donor engagement, it’s even better to have the consistent funds to provide the grants that align with your core values to improve the world we live in.
Whether you’re an endowment or a foundation, your values and priorities should influence your organization’s decisions, rather than unfortunate external forces.