First, a Hard Truth: Ivy League Colleges are a business.

What does a business need? To make money. So, how do Ivy League Colleges make money?

A few main sources:

• Endowments

• Tuition

• Alumni Donations

Every Ivy League school has a multi-billion dollar endowment. This is a fund, like a retirement account, that gets invested the stock market and pays out annual returns. Since all colleges are non-profit organizations, this one of the few investment vehicles that grows completely without tax and has been for decades. The endowment is the largest source of revenue for a university by far and is used to fund day to day operations. The President of an Ivy League School is hired PRIMARILY to grow the endowment, and education will always come second.