Struggling Colleges Tap Restricted Donor Funds to Keep the Lights On\n\nHigher education faces financial strain as colleges cut programs and lay off faculty. In extreme cases, institutions are using restricted donor funds—meant for specific purposes like scholarships or infrastructure—without donor consent. Douglas Belkin reports that nearly 200 private colleges borrowed from these funds in 2025, up from 131 in 2021, per Perspective Data Science.

Most funds covered everyday expenses, according to founder Matthew Hendricks. This practice risks disappointing philanthropists who donated billions over generations.\n\nThe trend highlights a broader crisis: colleges rely on endowments to sustain operations amid declining enrollments and rising costs. While some schools justify the move as temporary, critics argue it undermines donor trust.

A Netflix executive’s lawsuit over workplace culture serves as a tangential reminder of how institutional pressures can create unexpected challenges.\n\nBig Tech earnings and geopolitical tensions, like the Kremlin’s actions in Ukraine, are mentioned but unrelated to the core issue. The focus remains on how financial desperation forces colleges to breach donor agreements.