That a university accepts bitcoin donations is not the news here.

Only 1% of the donations will be employed each quarter to explore Bitcoin opportunities for SDSU.

and

The endowment will draw off 1% of its holdings each quarter for one or more campus programs to “explore uses and discover how SDSU could interact with cryptocurrency and Bitcoin specifically.

If I am reading that correctly, they will only spend 4% of the donations each year (1% per quarter), and the rest are held as an "endowment".