$999,999,999 endowments
Legislators in Massachusetts are currently looking at the
possibility of taxing colleges with endowments of over $1
billion. Unfortunately, universities don't have the same
"flexibility" as corporations which can just re-locate if taxation
changes.
What incentive do universities have to fundraise in the future if governments can suddenly decide they have received too much money and want in on the action? I can understand encouraging universities to contribute more to the community, but legislating it simply result in some "creative restructuring" to get around the rules. IKEA is an example of a company that is technically owned by a non-profit, allowing it to use tax exemptions and disclosure laws to its full benefit. I'm sure that some of the schools in Massachusetts have backup plans ready to go in case the legislation passes.
What incentive do universities have to fundraise in the future if governments can suddenly decide they have received too much money and want in on the action? I can understand encouraging universities to contribute more to the community, but legislating it simply result in some "creative restructuring" to get around the rules. IKEA is an example of a company that is technically owned by a non-profit, allowing it to use tax exemptions and disclosure laws to its full benefit. I'm sure that some of the schools in Massachusetts have backup plans ready to go in case the legislation passes.
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