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[QUOTE="supp, post: 466394, member: 702"]
That's just not how it works. I have no idea what the level of debt the AD already has but that can limit the amount that the AD or university can borrow at reasonable rates to make the project happen. And you can't just shift around endowment funds to make up for a shortfall. First of all, a high percentage of endowment funds are slated for a specific purpose. Secondly, the principle itself can never be touched...only the revenue generated from it. Third, a significant percentage of the endowment is not even liquid assets. Among the most important reasons for having an endowment is to enable the university to borrow money at reasonable rates with the endowment backing the loan or bond issue so as to get important projects off the ground without requiring the university to raise all the money up front. So for example Harvard has a huge endowment but it also has some $7 billion in debt. But if the AD has a high debt ceiling already, it may not be possible to borrow the money needed to get this thing off the ground. They need to raise enough to start the project knowing that by the time they finish it they will have enough to pay for it. Without a major naming gift, they probably can't get the financing they need to finish.
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