Thanks Mr. Gates

Today, Bill Gate’s foundation gave CMU $20,000,000.00

http://www.cmu.edu/cmnews/extra/040914_gates.html

We’re going to have to build a building just to hold it, which is what I think he’s got in mind anyway so I guess it works out.

The grant is to the School of Computer Science, which means that over in Drama we’ll likely not see much of a difference. I don’t mean to say that what’s good for CMU isn’t good for Drama, I’m sure it is a good thing for the entire campus community. But wouldn’t it be nicer to be able to spend the money ourselves, ok I mean myself.

I haven’t the faintest idea what I would do with a $20 million donation to Production Technology and Management. A scholarship endowment seems like a good idea. It turns out the twenty million might not really go that far there. Tuition here is north of $20,000. If we wanted to give full ride scholarships with a stipend to as many students as possible a twenty million dollar endowment only really gets you on the order of 20 students. Since the target enrollment in our world is something like 55 bodies we would have to short some people. And that assumes a fairly stable market and not really reinvesting any of the money. It boggles the mind how much money you need to have to really not have to worry about how much money you have.

Still I think I would start with a $10 million endowment for student scholarships and at least one faculty chair (that’s something like a $3 million requirement if I remember correctly). Maybe say four student scholarships, two grad and two undergrad, and a fund to do capital purchases in the option. That’s half the money gone. Who would have thought spending ten million dollars would be so easy. Poof!

Now that I think about it, probably the entire balance goes to the endowment. A portion dedicated to reinvestment, some for awards, production expenses, faculty development, visiting lecturers & workshops. If the return on one million is likely between $30,000 and $80,000 the full annual payout could go very quickly.

Or, since the school does seem to be operating well as is, maybe the endowment income should go only for things we’re currently not doing. An annual option faculty retreat to Maui leaps to mind. I could really use a car & driver. This approach seems to make more sense. I’ll have to give it some more thought.