Speaking of the Social Security Trust Fund;
I was told what happens when a yeshiva is given an endowment fund. It works like this:
See, it is very silly to give money and attach strings on how it is to be used. Presumably, the recipient knows how to run their business in the most efficient manner.
So, suppose you donate 100k to a trust fund. The yeshiva takes the money and invests it by lending it out at 10% interest. Since the yeshiva itself needs loans, they borrow it themselves from the trust fund. Every year, they pay 10k “interest” on the loan. The interest is income, which goes to the yeshiva.
You get it?