New NACUBO‑Commonfund data show gifts to college endowments fell 9.2% in fiscal 2025 while institutions withdrew a record $33.4 billion to cover operating budgets. Average one‑year investment returns held near prior levels, but smaller schools saw the steepest drops in philanthropy. The study finds colleges are drawing down endowments to plug budget gaps driven by enrollment declines, federal funding shifts and rising costs. Endowment officers and finance leaders will face tradeoffs: using reserves to sustain services now versus preserving long‑term purchasing power. Boards and finance committees should expect renewed debate over spending rates, asset allocation and donor communication.