IRS eyes College Endowments
April 30, 2008 – 10:27 am by Nick
Republican senator, Charles E. Grassley of Iowa, has suggested that wealthy colleges should spend at least 5 percent of their endowments each year. The common perception on Capital Hill is that prestigious colleges have become stingy.
At a Georgetown University conference, Steven T. Miller, commissioner of the IRS’s tax-exempt division floated the idea that “colleges and other nonprofit organizations spend their endowments at levels commensurate with their assets.”
A minimum spending goal obligates college charities and organizations to pursue their responsibilities but iron clad rules cannot be applied, according to Miller.
Over the last year, the 50 top college endowments increased by $1.02 billion on average. Endowment per student allows us to understand the size of a college’s endowment in contrast to the size of its student body. The top 50 universities with the highest endowment per student ratio increased by 10 to 360 thousand dollars.
Many of the universities and colleges, found at the top of these lists (Harvard, University, Yale, Stanford University, University of Virginia, …), have started revamping their financial aid programs, focusing on economic diversity. The New York Times Education section published an article, revealing top colleges intentions to lure students from lower income families. Hopefully, lower tuition fees and better financial aid programs can be achieved with spending endowment funds.
Here is a list of the countries top college endowments:
Colleges ranked by size of endowment per student:
