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Although endowment size is a relative measure of a college's financial strength and stability, there are many other factors that influence the quality of a school.  For example, public universities generally have lower endowments than private institutions, but public universities receive annual taxpayer appropriations that can make up for a lower annual endowment income.  In general, over time, universities earn an average of 4% per year on their endowment investments.  So, a $100 million endowment investment may subsidize annual operations by $4 million per year.
 
Although endowment size is a relative measure of a college's financial strength and stability, there are many other factors that influence the quality of a school.  For example, public universities generally have lower endowments than private institutions, but public universities receive annual taxpayer appropriations that can make up for a lower annual endowment income.  In general, over time, universities earn an average of 4% per year on their endowment investments.  So, a $100 million endowment investment may subsidize annual operations by $4 million per year.
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== See also ==
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* [[Endowment tax]]
 
==References==
 
==References==
 
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[[Category:Universities]]
 
[[Category:Universities]]
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