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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.
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Right It's a non-profit corporation. You apparently think the word ‘corporation’ means only ‘for-profit incorporated business’. In fact, it means any legally chartered body that can undertake contracts and be responsible for its own liabilities. Universities are corporations. Non-profits are corporations. Municipalities are corporations. And while each of those types of corporations has its own functions and restrictions, there is considerable overlap between them in their operations.
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The fact that you reference its endowment supports the point. Universities live off of gifts (endowment) from donors and alumni.
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No, they live off of
income generated from the capital represented by those endowments. The money is invested, and the profits from that investment are used to fund university programs.
Did you think ASU just has $1.3 billion in petty cash doing nothing, and draws on it whenever a professor wants some chalk?