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Finance professor Jeffrey R. Brown's new book is "How the Financial Crisis and Great Recession Affected Higher Education," with co-editor Caroline M. Hoxby, a Stanford economics professor

In How the Financial Crisis and Great Recession Affected Higher Education, Jeffrey R. Brown, a finance professor at the University of Illinois at Urbana-Champaign, and co-editor Caroline M. Hoxby, a Stanford economics professor, examine universities as complex economic organizations that operate in an intricate institutional and financial environment.

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Stop Feeding the Monster. End the Coal Age. Divest the West. Sandy Says: Divest Climate Destruction. Bound by Fossil Fuels, Freed by Action.

Messages like these have emblazoned banners on campuses across the country since’s Fossil Free divestment campaign began last November.

Student groups at more than 60 college and universities hosted events to raise awareness and push for fossil fuel divestment as part of’s #FossilFreedom Day of Action.

Although the legislation only applies to institutions based in New York, the New York Prudent Management of Institutional Funds Act of 2010 has led to discussion in other states about how endowments should be managed to respect donor intentions while meeting institutional needs. Some key points include:

The financial crisis is in the past, more or less, and campuses are looking ahead to a new era for their endowments. But what does this mean? Four years on, we’ve come to grips with the changes wrought by the September 2008 market crash. Finance departments are revising their theories and boards of trustees are revising their expectations under what has been called the “new normal”—a time of low stock market returns, low interest rates, and low growth in personal income.

To outperform the broad U.S. equity market, many college and university endowments focus primarily on hiring active managers to outperform a narrow part of the market, such as large-cap growth or small-cap value, while maintaining an equal allocation between growth stocks and value stocks. In addition to active management, however, these endowments should also consider taking advantage of a structural bias that exists in the U.S. equity market: the outperformance of value stocks relative to growth stocks over longer periods (the value premium).

An Atlas of Giving report reveals that the education sector was the strongest for charitable giving in 2011. The sector received $54.30 billion in 2011, an increase of 9.8 percent over 2010 when donors gave $49.44 billion. Education still falls in second place to religious charities, with education accounting for 16 percent of total giving in 2011 and religion at 36 percent.

It's common to find students filing papers in campus offices, restocking library shelves, or checking IDs at the fitness center to make a buck. What's a little less common is students replacing sidewalks and entranceways to dorms, building fountains, and constructing additions.

Westridge Capital Management, formed in 1996, promised investors enhanced cash returns by trading equity index futures. The firm's performance was so attractive, a host of pensions and endowments invested with it, including Bowling Green State University (Ohio), Carnegie Mellon University (Pa.), Ohio Northern University, and the University of Pittsburgh. In 2009, the Securities and Exchange Commission alleged that staff at Westridge invested very little client money.

Given the multiple goals and multiple players involved in developing and managing endowed scholarship funds, there are lots of opportunities for communication gaps, poor service, and less than optimal use of the funds. In an ideal world, endowed funds and annual gifts given for scholarship support would be used to take the place of unfunded aid in the offers made to students, freeing unfunded (and therefore unrestricted) resources for other purposes. However, many institutions are not able to achieve this efficient outcome for a number of reasons.