Princeton University is so rich that it doesn’t need any outside funding, and its finances are billed as the world’s first perpetual motion machine —that is, one that can run forever without any outside financial support. America is home to a slew of super-rich universities, with staggering amounts of money from wealthy alumni giving, that increasingly resemble hedge funds with nonprofit educational arms. A university like Princeton doesn’t actually need to ask for donations from alumni anymore, and it doesn’t actually require students to pay tuition. Princeton’s endowment will reach $37.7 billion in 2021, or an average of $4.5 million per student, and the school’s operating expenses that year were $1.86 billion, less than 5 percent of the endowment. The size of the endowment may ebb and flow, but there are reasonable reasons to expect it to continue to grow faster than spending .
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