Richest U.S. Schools Could Lose Tax Status in Endowment Proposal
- Draft bill mandates more endowment spending on tuition relief
- Wealthiest 832 schools had $516 billion in endowments
Columbia University in New York.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
A U.S. Congressman is floating an idea that’s likely to find opposition from the wealthiest colleges: devote 25 percent of a school’s annual endowment income for financial aid or lose tax-exempt status.
Almost 100 endowments with assets of more than $1 billion would be required to give that percentage to lower college costs for middle and low-income students, according to a draft congressional bill provided to Bloomberg. If they didn’t comply for three consecutive years, they could lose their nonprofit status.