Nathaniel, I'm not so sure about your post
on college endowments.
Not exact matches
About 30
colleges and universities may pay a 1.4 percent tax
on their
endowment investment returns, including Harvard, Yale and small liberal arts
colleges such as Amherst and Williams.
«An excise tax
on the
endowments of some private
colleges and universities, regardless of how many or how few institutions it affects, is a remarkably bad idea that takes money that would otherwise be used for student aid, research, and faculty salaries and sends it to the Department of the Treasury to finance corporate tax cuts,» said Ted Mitchell, president of the American Council
on Education, a higher education trade group.
But doing so would miss a vital point: the
endowment tax is an attack
on academic freedom, and it is an attack
on all
colleges and universities.
Leslie earned her BA in economics from Boston
College and currently serves
on the Board of Directors for US SIF, the membership association for professionals, firms, institutions and organizations engaged in sustainable, responsible, and impact investing, as well as the Advisory Board of the Intentional
Endowments Network.
The Bowdoin Investment Committee,
on which I serve as chair, has one goal: to earn the highest return
on the
College's
endowment over time.
On Monday, Nathaniel wrote about
college endowments and proposed legislation.
Another would exempt a small tuition - free
college in Kentucky from a new tax
on endowments.
Jamie Merisotis, president of the Institute for Higher Education Policy, said top - tier institutions (with their large
endowments) are able to increase need - based scholarships but are traditionally reluctant to lower their academic standards.9 Terry Hartle, the American Council
on Education's senior vice president, justified this policy, saying
colleges should hesitate to admit «academically underprepared» students.
It is crucial to keep in mind, however, that the proposed tax is not aiming at all
college and university
endowments — just the biggest ones at private institutions: the proposed 1.4 percent tax
on investment earnings by
endowments at private
colleges that enroll at least 500 students and have assets of $ 250,000 per full - time student.
But they receive comparatively little attention relative to public
colleges and the for - profit sector, perhaps because the conventional wisdom casts private
colleges based
on the profile of the most elite institutions in the sector, which have large
endowments and charge high tuition to mostly wealthy students.
Most
college endowments that have not gone overboard
on illiquid investments and don't have a boatload of debt probably don't have to worry here.
Trump has also blamed the high cost of
college tuition
on universities and criticized how they spend their
endowments.
Trump also revisited his idea of incentivizing
colleges to keep their costs low by threatening to remove their tax - exempt status
on large
endowments.
Addressing the rising cost of
college tuition
on the campaign trail, Trump proposed taking away the preferential tax status enjoyed by university
endowments as a means to incentivize cost controls.
Newspapers reporting
on Campbell's retirement in 2011 noted that he grew the
endowment, balanced the budget, and brought fiscal stability to the
college.
Beginning as a movement in 2011, young people
on campuses across the US were determined that their
college or university should not be putting money into fossil fuels, and urged their schools to divest their
endowments away from fossil fuel companies.
Sierra Club recently named them # 1 in their list of Top 10 Coolest Schools and earned an A -(actually a top score)
on the Sustainable
Endowments Institute's «
College Sustainability Report Card 2008.»
After all, is the duty of the manager of those funds in a university or
college endowment to find the best possible investment in pure financial terms, or based
on both the economic and potentially unrealizable social return
on campus?
He has served
on committees and advisory boards and lectured for The Pennsylvania State University, Community
College of Allegheny County and Duquesne University, and has helped establish scholarships and
endowment funds.
Many
colleges, however, are sitting
on billions of dollars in
endowment money and hire the best financial advisors to grow those
endowments.
Gerber's
endowment life insurance policy is called a
College Plan,
on the assumption that you'll use the policy's proceeds to pay for your child's education.
The
college Democratic organization at Michigan State University, for example, recently began calling
on the university's
endowment to withdraw its roughly $ 50 million investment.