Chamberlin further challenges the use of the term "deficit" to describe Radcliffe's spending patterns.

"We're really spending reserves," she says. "We're not creating a deficit."

Chamberlin explains that Radcliffe has been using unrestricted reserve money, referred to as quasi-endowment, to cover the gap between its income and expenditures.

Quasi-endowment "can either be spent for current use, or it can be put toward the endowment," according to Chamberlin.

"The Trustees can decide how to deploy it," she says.

Little Professor of Business Administration Charles J. Christenson says that although Radcliffe cannot continue to spend its quasi-endowment funds indefinitely, the college's current policy is not in violation of the capital donor's intent.

Christenson adds, however, that the college's original classification of the funds as "quasi-endowment" suggests the college would have preferred not to utilize this capital.

Chamberlin draws a distinction between spending quasi-endowment funds and dipping into the college's income-producing savings.

"It's not the same as spending from the endowment," she says.

A senior partner from Coopers and Lybrand, the accounting firm which audits Radcliffe's financial records, "tested the college for financial health and found us appropriately managing our resources," Chamberlain says.

In the letter which accompanies Radcliffe's financial statements, Coopers and Lybrand reports, "In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Radcliffe College."

But Jack McCarthy, the partner at Coopers and Lybrand who works on the Radcliffe account, refused to comment as to whether the firm endorses Radcliffe's "financial health."

One expert in business administration says that Radcliffe's current policy of spending quasi-endowment funds to support its capital campaign is a legitimate practice that might help to boost the college's fundraising effort.

"Running a deficit might actually be a good way to generate outside funds," says Amy P. Sweeney, assistant professor of business administration at the Business School.

Sweeney further notes that Radcliffe, as a not-for-profit organization, is not subject to the same standards of fiscal responsibility as for-profit groups. Radcliffe, she says, might reasonably engage in deficit spending if such a policy benefits its students.