That’s incredible!

Wonderful couple.

I don't care how endowed the assistant coach is-that's too much money.

It takes numbers like that to generate enough cash flow to support the position. I don’t think the principle is drawn down, i think the position is supported off the interest.

this probably nets $50-70k per year. The gift is invested and the proceeds are split 3 ways - the annual payout, reinvesting to grow the principal relative to inflation, and a cut off the top to pay the people in the fundraising department. Endowed professorships start at $1.5 to $3M so this seems in the ballpark.

Good one, had to laugh.

Depends how it's invested, might be even less. If the target return is the same as the UC pension's at 6.75% then I'd assume you'd only want to pay out something like 3-4% each year. It's possibly not even covering the whole position, just supplementing the athletics budget.

USC reportedly has their whole FB roster and coaches fully supported by endowments.

@fugawe09@agalum In this case I was making a pun based on the wording of the article title.

ha yeah i saw that after, good one!

As @fugawe09 says, the 1M corpus is not eroded so you only are taking 4-5 % of that annually for “use”. At NC State endowments were tapped at 4% annually, and at one time (maybe 2008-9) some endowed scholarships were frozen due to being “underwater”. Depends on markets and investing strategy to a degree. But the big numbers the public sees doesn’t reflect the actual annual disbursement.