Endowment tax

From Wikipedia, the free encyclopedia

Endowment tax is taxation of endowments. The city of Cambridge has proposed taxing MIT on these previously exempt, non-profit earnings.^[1] A financial endowment is a transfer of money or property donated to an institution, with the stipulation that it be invested, and the principal remain intact. The total endowment can be over a billion dollars at some of the United States' richest universities. The non-profit status of some institutions like hospitals has been questioned in the United States House Ways and Means Committee ^{[2] [3]}

[edit] See Also

• List of U.S. colleges and universities by endowment
• Internal Revenue Service (US tax collection agency)
• PILOT Payment in Lieu of Taxes

[edit] Reference

1. ^ He, Ray C. (Tuesday, October 4, 2005.). Cambridge Seeks to Tax Earnings on Endowment (Web). Volume 125, Number 44. The MIT Tech.
2. ^ Ways and Means Questions Nonprofit Hospitals' Tax Status (Web). The Commonwealth Fund 1 East 75th Street, New York, NY. Retrieved on January 22, 2007.
3. ^ Jill Horwitz (May 26, 2005). "Testimony Before House Ways and Means Committee" (PDF).