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Originally Posted by Lanny_McDonald
ASU is a non-profit. It's not legally allowed to operate as a corporation or generate profits. The fact that you reference its endowment supports the point. Universities live off of gifts (endowment) from donors and alumni. It is this giving that allows universities to build new buildings and pay for research. They don't generate profits because that is against their charter and their tax status.
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Huge state schools like ASU don’t have to live off of their endowment or donations. They generate massive amounts of revenue just like a for profit corporation. Only difference is that there are no shareholders to whom profits get distributed.
They are run very much like big businesses. Their legal form and tax status doesn’t really change that.