Skip to content
Do you have adblock enabled?
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(TaxProf)   Investment return on university endowments: 50%. Amount that goes to students: 5%   (taxprof.typepad.com) divider line
    More: Asinine, Association of American Universities, University Endowments Mint, Financial endowment, Wall Street Journal, Large college endowments, University, biggest investment gains, Washington University  
•       •       •

2123 clicks; posted to Main » on 02 Oct 2021 at 4:35 PM (1 year ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



78 Comments     (+0 »)
View Voting Results: Smartest and Funniest


Oldest | « | 1 | 2 | » | Newest | Show all

 
2021-10-02 4:37:38 PM  
We need to tax endowments.

We also need to tax church donations when a church is beyond a certain size. Sorry, Mormons and Catholics.
 
2021-10-02 4:39:01 PM  
Hasn't Harvard been referred to as "a hedge fund with a football team"?
 
2021-10-02 4:39:18 PM  
My shocked face. Let me show you it.
 
2021-10-02 4:43:01 PM  

puffy999: We need to tax endowments.

We also need to tax church donations when a church is beyond a certain size. Sorry, Mormons and Catholics.


That was part of Trump's tax plan that was enacted.

Congrats, you're now on the same side as Trump on an issue.
 
2021-10-02 4:45:07 PM  

gar1013: Congrats, you're now on the same side as Trump on an issue.


i.kym-cdn.comView Full Size


I also prefer breathing oxygen and being alive. Boy that's THREE things!
 
2021-10-02 4:47:54 PM  
In all fairness, anyone who had money in the stock market last year probably has crazy returns like that.

The question is how much they lost in early 2020 when the market crashed

I'd prefer for all stock transactions to be taxed slightly (like 1%) so those investing for the long-term aren't significantly affected, but you penalize the 'high frequency reading' type stuff
 
2021-10-02 4:51:55 PM  

gar1013: puffy999: We need to tax endowments.

We also need to tax church donations when a church is beyond a certain size. Sorry, Mormons and Catholics.

That was part of Trump's tax plan that was enacted.

Congrats, you're now on the same side as Trump on an issue.


The fact that you assume a person would be upset about being on the same side of an issue as someone based on their political party and not the issue itself is more telling about you than anything.
 
2021-10-02 4:52:32 PM  
I mean, that tracks... Never let a good grift go to waste.
 
2021-10-02 4:57:24 PM  

Oneiros: In all fairness, anyone who had money in the stock market last year probably has crazy returns like that.

The question is how much they lost in early 2020 when the market crashed

I'd prefer for all stock transactions to be taxed slightly (like 1%) so those investing for the long-term aren't significantly affected, but you penalize the 'high frequency reading' type stuff


Or owned and sold a house.
 
2021-10-02 4:59:26 PM  
i dont see the 5% thing. 5% what? arent endowments like trust funds? if they paid out 100% they'd be instantly over.
 
2021-10-02 5:01:15 PM  

puffy999: We need to tax endowments.

We also need to tax church donations when a church is beyond a certain size. Sorry, Mormons and Catholics.


Thankfully, I don't have a massive penis.
 
2021-10-02 5:02:01 PM  
The university from which I have a degree keeps asking for money by email. It has the 2nd largest amount of money of any university in the US. I suggested that this was unseemly, since I am by no means a millionaire. I also informed this idiot fund-raiser that the name I use (my middle name) was not the name he was familiarly calling me (my first name). They kept sending these requests even after I used profanity. I have blocked this fool.
 
2021-10-02 5:02:41 PM  
Seems about right to me.

Universities make about 10x as much as common investors, and they give the little people ten times as much as Business, Churches or Government, namely 10x 5% and 10x 0.05%

I guess that is why they call it a "liberal educution" or a "liberal institution". Some churches used to do it that way, but they have been replaced by schools, universities, teaching colleges, banks, museums and so orth. Today's churches are just small and medium, or corporate, businesses.

Conservative, for-proit universities, schools, churchs and other crap are run as for-profit and thus screw the little people even harder than the liberals and democrats.
 
2021-10-02 5:06:04 PM  
Public unis have had to do this bullshiat ever since Reagan's tax cuts took boatloads of federal higher education funding away from states, so states had to choose between 'raise state taxes like crazy, or stock up like crazy in the ol' endowment by selling academically-developed I.P. to private industry'.

/ffs do we need to - at the absolute bare minimum - get back to pre-Reagan taxation policy
 
2021-10-02 5:06:12 PM  

puffy999: gar1013: Congrats, you're now on the same side as Trump on an issue.

[i.kym-cdn.com image 568x443]

I also prefer breathing oxygen and being alive. Boy that's THREE things!


You're just salty because you have to admit that Trump had a good idea that none of your socialist heroes would have ever tried to do.

Cry moar.
 
2021-10-02 5:06:43 PM  

Bootysama: gar1013: puffy999: We need to tax endowments.

We also need to tax church donations when a church is beyond a certain size. Sorry, Mormons and Catholics.

That was part of Trump's tax plan that was enacted.

Congrats, you're now on the same side as Trump on an issue.

The fact that you assume a person would be upset about being on the same side of an issue as someone based on their political party and not the issue itself is more telling about you than anything.


And yet he was clearly upset in his response.

Looks like I was right.
 
2021-10-02 5:07:01 PM  
No shiat. Businesses don't typically repay their customers.
 
2021-10-02 5:07:06 PM  

WastrelWay: The university from which I have a degree keeps asking for money by email. It has the 2nd largest amount of money of any university in the US. I suggested that this was unseemly, since I am by no means a millionaire. I also informed this idiot fund-raiser that the name I use (my middle name) was not the name he was familiarly calling me (my first name). They kept sending these requests even after I used profanity. I have blocked this fool.


My alma mater won recognition by somebody or other for the state-of-the-art accounting and tracking system they use to dun rich and poorish alumni. Another one still knows where I live. Three of them are European, have lost track of me, or just are resigned not to waste expensive paper and frankage.
 
2021-10-02 5:07:52 PM  

gameshowhost: Public unis have had to do this bullshiat ever since Reagan's tax cuts took boatloads of federal higher education funding away from states, so states had to choose between 'raise state taxes like crazy, or stock up like crazy in the ol' endowment by selling academically-developed I.P. to private industry'.

/ffs do we need to - at the absolute bare minimum - get back to pre-Reagan taxation policy


It's a shame the Dems never controlled the Presidency, House, and Senate all at the same time.

They could do something about that.
 
2021-10-02 5:08:52 PM  

gar1013: gameshowhost: Public unis have had to do this bullshiat ever since Reagan's tax cuts took boatloads of federal higher education funding away from states, so states had to choose between 'raise state taxes like crazy, or stock up like crazy in the ol' endowment by selling academically-developed I.P. to private industry'.

/ffs do we need to - at the absolute bare minimum - get back to pre-Reagan taxation policy

It's a shame the Dems never controlled the Presidency, House, and Senate all at the same time.

They could do something about that.


if you're referring to the 111th congress' failure to prioritize, i agree
 
2021-10-02 5:09:26 PM  
The Ivy League schools could give every single student a 100% free ride, room and board included, and they'd still be making a profit from their investments.  When there are students struggling to get a good education and taking on massive loans to achieve this while these corporations hide behind their tax exempt status, something is seriously wrong.  Of course, other than a few "tokens", those struggling students are rarely allowed to attend ivy schools.
 
2021-10-02 5:14:07 PM  
If I made a $1,000,000.00 endowment to an art school, I would expect exactly no return. Same for the sciences or sport. That $20,000.00 would be shoved into to the accounts would almost be a pleasant surprise.

Also, I'd be dead. So none of this would matter, and I wouldn't care. Because I'm dead.
 
2021-10-02 5:15:42 PM  
Most large universities have become businesses that teach undergraduates as a hobby.
 
2021-10-02 5:23:25 PM  

gar1013: And yet he was clearly upset in his response


images.complex.comView Full Size
 
2021-10-02 5:23:48 PM  

WastrelWay: The university from which I have a degree keeps asking for money by email. It has the 2nd largest amount of money of any university in the US. I suggested that this was unseemly, since I am by no means a millionaire. I also informed this idiot fund-raiser that the name I use (my middle name) was not the name he was familiarly calling me (my first name). They kept sending these requests even after I used profanity. I have blocked this fool.


My university has the same basic spiel:

'We're just calling to update your info for our records', then something about how great it is that alumni support the university, then ask you to donate.   Then explain that any little bit helps.   And no. It goes directly to help students.

Some are more persistent than others.

They keep trying even after you tell them that you will never give a dime to the school, after they threatened to have to expelled for informing on a faculty member who ended up 44 months in club fed for misspending grant money.

And then fired you, deleting your email address that you had for 10+ years and that most people had for your contact info... while you were actively taking classes, and the teacher mailed out the take-home midterm the next day.

Then fighting my unemployment claim, saying I had resigned, but then not willing to put it in writing so I could sue for libel.

Or the months of your life that they kept screwing around because they didn't flag you as graduating even though they had given you a diploma, which kept you unemployed for 7 months, even though I was able to find a document they sent me my last semester saying what classes I needed, while they claimed I was missing a 1 credit class.

(And it wasn't until then they they started calling me, as I wasn't flagged as an alumnus before that, I guess)

And then the collections agency they put on you for the classes that you took while a staff member.

It's been more than a year since they last called me.   Maybe they finally flagged me as 'there is no reason to ever call this person'
 
2021-10-02 5:26:16 PM  
Harvard actually does a pretty good job of subsidizing students who can't afford the exorbitant tuition. Net Price Calculator.

/Didn't go to Harvard
//My sister did - with a scholarship
 
2021-10-02 5:27:48 PM  

OgreMagi: The Ivy League schools could give every single student a 100% free ride, room and board included, and they'd still be making a profit from their investments.  When there are students struggling to get a good education and taking on massive loans to achieve this while these corporations hide behind their tax exempt status, something is seriously wrong.  Of course, other than a few "tokens", those struggling students are rarely allowed to attend ivy schools.


How long could they do that though?  This is like saying that taxing wealth will bring in 10 bazillion dollars this year.  That's true, but now what?  What happens next year when their wealth has dropped by 50% because you taxes it?

I'm not saying the wealthy or schools or churches shouldn't be taxed, but think about what happens after that.
 
2021-10-02 5:30:53 PM  

gameshowhost: gar1013: gameshowhost: Public unis have had to do this bullshiat ever since Reagan's tax cuts took boatloads of federal higher education funding away from states, so states had to choose between 'raise state taxes like crazy, or stock up like crazy in the ol' endowment by selling academically-developed I.P. to private industry'.

/ffs do we need to - at the absolute bare minimum - get back to pre-Reagan taxation policy

It's a shame the Dems never controlled the Presidency, House, and Senate all at the same time.

They could do something about that.

if you're referring to the 111th congress' failure to prioritize, i agree


That's not the only time the Dems have held both chambers and the presidency.

It's almost as if you vote for these people and they ignore what you want.
 
2021-10-02 5:31:41 PM  

enry: OgreMagi: The Ivy League schools could give every single student a 100% free ride, room and board included, and they'd still be making a profit from their investments.  When there are students struggling to get a good education and taking on massive loans to achieve this while these corporations hide behind their tax exempt status, something is seriously wrong.  Of course, other than a few "tokens", those struggling students are rarely allowed to attend ivy schools.

How long could they do that though?  This is like saying that taxing wealth will bring in 10 bazillion dollars this year.  That's true, but now what?  What happens next year when their wealth has dropped by 50% because you taxes it?

I'm not saying the wealthy or schools or churches shouldn't be taxed, but think about what happens after that.


They could do it forever or until the markets they are investments crash.  The money they make from tuition is a rounding error in comparison.
 
2021-10-02 5:34:12 PM  

blackhalo: Harvard actually does a pretty good job of subsidizing students who can't afford the exorbitant tuition. Net Price Calculator.

/Didn't go to Harvard
//My sister did - with a scholarship


Lol. I put in my numbers and it doesn't even come close to an affordable amount.

Basically they just want rich people and poor people.
 
2021-10-02 5:36:00 PM  
I wanted to attend George Washington University online for a masters program several years back. I was living in Maryland so I could go to their campus and kind of have a bit of typical college experience. Obviously it's a good school and lots of amazing alumni.  The program for two years was $100,000. I read online that they were trying to recruit people by helping cover the cost of college so I asked financial aide. Nothing to help. I would have had to take out loans. I would have had over $100,000 in loans upon graduation.  Granted this school may have helped me land a nice job but between this and bachelor's loans I would have had to make at least a high paying lawyers salary to pay it back. I asked about any help and I was on my own. And I noticed they received millions in alumni donations each year. I chose to go elsewhere.  They kept calling and I finally told them they were just too expensive.  I don't get the point of giving money to schools if basically none of it goes to help those who are smart enough to attend but can't afford it.
 
2021-10-02 5:37:23 PM  

gar1013: blackhalo: Harvard actually does a pretty good job of subsidizing students who can't afford the exorbitant tuition. Net Price Calculator.

/Didn't go to Harvard
//My sister did - with a scholarship

Lol. I put in my numbers and it doesn't even come close to an affordable amount.

Basically they just want rich people and poor people.


The way of cost of living is increasing against pay, we'll all be poor soon enough. Someone has to pay off wall street's bad bets after all.
 
2021-10-02 5:37:39 PM  

4seasons85!: I wanted to attend George Washington University online for a masters program several years back. I was living in Maryland so I could go to their campus and kind of have a bit of typical college experience. Obviously it's a good school and lots of amazing alumni.  The program for two years was $100,000. I read online that they were trying to recruit people by helping cover the cost of college so I asked financial aide. Nothing to help. I would have had to take out loans. I would have had over $100,000 in loans upon graduation.  Granted this school may have helped me land a nice job but between this and bachelor's loans I would have had to make at least a high paying lawyers salary to pay it back. I asked about any help and I was on my own. And I noticed they received millions in alumni donations each year. I chose to go elsewhere.  They kept calling and I finally told them they were just too expensive.  I don't get the point of giving money to schools if basically none of it goes to help those who are smart enough to attend but can't afford it.


Being you were, obviously, the smartest person to ever apply.
 
2021-10-02 5:39:21 PM  

blackhalo: Harvard actually does a pretty good job of subsidizing students who can't afford the exorbitant tuition. Net Price Calculator.

/Didn't go to Harvard
//My sister did - with a scholarship


Damn... I played around with that for a while. Surprisingly great.
 
2021-10-02 5:40:48 PM  

gar1013: And yet he was clearly upset in his response.

Looks like I was right.


Looks like you're off your meds and the voices in your head are yelling at eachother. You're a one-man show. If someone shrugging you off gives you a thrill, though, hey that's nice for you I guess.
 
2021-10-02 5:40:56 PM  

nicoffeine: 4seasons85!: I wanted to attend George Washington University online for a masters program several years back. I was living in Maryland so I could go to their campus and kind of have a bit of typical college experience. Obviously it's a good school and lots of amazing alumni.  The program for two years was $100,000. I read online that they were trying to recruit people by helping cover the cost of college so I asked financial aide. Nothing to help. I would have had to take out loans. I would have had over $100,000 in loans upon graduation.  Granted this school may have helped me land a nice job but between this and bachelor's loans I would have had to make at least a high paying lawyers salary to pay it back. I asked about any help and I was on my own. And I noticed they received millions in alumni donations each year. I chose to go elsewhere.  They kept calling and I finally told them they were just too expensive.  I don't get the point of giving money to schools if basically none of it goes to help those who are smart enough to attend but can't afford it.

Being you were, obviously, the smartest person to ever apply.


No I wasn't.  I'm not implying that at all. But they kept trying to get me to join their program and I had the GPA, experience and pretty decent recommendations that were more than enough to get in. But obviously since I couldn't afford it I said no. So instead of helping an eligible candidate with tuition they decided against it. I'm not special but clearly they don't put any money towards students who need the help. Or God forbid lower their tuition.
 
2021-10-02 5:42:21 PM  
I once sat in on a class at Harvard as a MA student who was in the area. On one hand I was distinctly unimpressed by the lecture, but seeing the students in the class I wouldn't have given them a dime either.
 
2021-10-02 5:46:29 PM  

4seasons85!: I wanted to attend George Washington University online for a masters program several years back. I was living in Maryland so I could go to their campus and kind of have a bit of typical college experience. Obviously it's a good school and lots of amazing alumni.  The program for two years was $100,000. I read online that they were trying to recruit people by helping cover the cost of college so I asked financial aide. Nothing to help. I would have had to take out loans. I would have had over $100,000 in loans upon graduation.  Granted this school may have helped me land a nice job but between this and bachelor's loans I would have had to make at least a high paying lawyers salary to pay it back. I asked about any help and I was on my own. And I noticed they received millions in alumni donations each year. I chose to go elsewhere.  They kept calling and I finally told them they were just too expensive.  I don't get the point of giving money to schools if basically none of it goes to help those who are smart enough to attend but can't afford it.


Law school is one of the worst choices if you're hoping for significant aid.
 
2021-10-02 5:50:31 PM  

gar1013: gameshowhost: gar1013: gameshowhost: Public unis have had to do this bullshiat ever since Reagan's tax cuts took boatloads of federal higher education funding away from states, so states had to choose between 'raise state taxes like crazy, or stock up like crazy in the ol' endowment by selling academically-developed I.P. to private industry'.

/ffs do we need to - at the absolute bare minimum - get back to pre-Reagan taxation policy

It's a shame the Dems never controlled the Presidency, House, and Senate all at the same time.

They could do something about that.

if you're referring to the 111th congress' failure to prioritize, i agree

That's not the only time the Dems have held both chambers and the presidency.

It's almost as if you vote for these people and they ignore what you want.


You, as in me? I vote for the public servant types in primaries. Not my fault that the other douchebags vote for the douchebags.

/oh yes and the gop is suuuuch a magnificent alternative, let me tell you
//not only do they ignore what i want, but they're hellbent on making everything terrible
 
2021-10-02 5:52:40 PM  

puffy999: We need to tax endowments.


Why?

Let's put aside how large some of these endowments are for a moment.

Most of the money in them is earmarked for financial aid, professors' salaries, research (some money is used for operating costs, but it's likely less than 30 percent) It's not like the university administrators are using the funds to pay for retreats and conferences in Hawaii, or top leadership gets a percentage of the endowment as salary.

As for the size, yeah, some are massive, but they're in proportion to the size of the university. The operating costs for these schools are in the BILLIONS.

While it certainly seems like some schools could be spending more from their endowments, Harvard heavily subsidizes tuition for students from families with gross income under $150k, providing a free ride for kids whose parents earn under $65k. There's not a whole lore more they could do.
 
2021-10-02 5:53:15 PM  

wademh: 4seasons85!: I wanted to attend George Washington University online for a masters program several years back. I was living in Maryland so I could go to their campus and kind of have a bit of typical college experience. Obviously it's a good school and lots of amazing alumni.  The program for two years was $100,000. I read online that they were trying to recruit people by helping cover the cost of college so I asked financial aide. Nothing to help. I would have had to take out loans. I would have had over $100,000 in loans upon graduation.  Granted this school may have helped me land a nice job but between this and bachelor's loans I would have had to make at least a high paying lawyers salary to pay it back. I asked about any help and I was on my own. And I noticed they received millions in alumni donations each year. I chose to go elsewhere.  They kept calling and I finally told them they were just too expensive.  I don't get the point of giving money to schools if basically none of it goes to help those who are smart enough to attend but can't afford it.

Law school is one of the worst choices if you're hoping for significant aid.


It wasn't law school I was just using that as a comparison.  It was for Healthcare Administration.  Which the highest ranked salaries you could find outside of CEO were around $100,000 a year.
 
2021-10-02 5:57:18 PM  
In before some expert explains all those endowment dollars are in small earmarked bills and so they are all really dirt poor.
 
2021-10-02 5:59:12 PM  

puffy999: We need to tax endowments.

We also need to tax church donations when a church is beyond a certain size. Sorry, Mormons and Catholics.


Why should any group get out of taxes?  Even small churches?  They believe in woo and juju and hokum.  Tax the shiat out of them too.
 
2021-10-02 5:59:23 PM  
The point of the endowment is to grow the endowment.  The point of fund-raising is to fund the fund-raising office.  The point of university is to provide alumni for the fund-raising office to use for fund-raising.  Education is a distasteful pollution in the engine.  My teaching students makes me a parasite leeching money from the university budget that could go to the endowment.
 
2021-10-02 5:59:49 PM  
Why should they get any at all?
 
2021-10-02 6:00:16 PM  

gar1013: blackhalo: Harvard actually does a pretty good job of subsidizing students who can't afford the exorbitant tuition. Net Price Calculator.

/Didn't go to Harvard
//My sister did - with a scholarship

Lol. I put in my numbers and it doesn't even come close to an affordable amount.

Basically they just want rich people and poor people.


Calling BS.

If your parents' gross income is $100k, you'd pay $7,250.

$150k it's $15,550.

$200k it's $29,000.

Ok, maybe $29k is a lot if you live in an expensive city and you're going to lose like 1/3rd of it to taxes; but at that income level, presumably you've been able to save a bit over the years. Heck, if you put aside $3.5k a year for 18 years with a 6 percent average annual return, you'd have enough to cover all four years.
 
2021-10-02 6:01:10 PM  
My undergrad institution finally stopped asking me for money. I assume it's because I repeatedly traumatized the poor kids they had calling me.

"Kiddo, our college will never see a dime of my money. Let me tell you about the anti-gay policies and experiences that were around when I was there. Get some popcorn. You ready? You ever seen a lesbian get her face beaten against concrete because she was too lesbiany for a Missouri Synod Lutheran to stand it?"

My grad school can have my money, though.
 
2021-10-02 6:04:24 PM  
[crying]

Just found out that Trump's tax on endowment income is... wait for it... *1.4%* ... sad trombone

HIM MAKE BIG PLAN! HIM POWERFUL AND SMART
 
2021-10-02 6:04:58 PM  
Well... if he wasn't crazy before, he is now.
 
2021-10-02 6:05:54 PM  

puffy999: We need to tax endowments.

We also need to tax church donations when a church is beyond a certain size. Sorry, Mormons and Catholics.


It's not just the large organizations like Mormons and Catholics. Sure, they number in the millions, but some of these independent megachurches have members in the tens of thousands for a single church. If the church looks more like a stadium, the pastor's salary rivals the average CEO and lives in a mansion, and they own a private jet, then they should be paying taxes.
 
Displayed 50 of 78 comments


Oldest | « | 1 | 2 | » | Newest | Show all


View Voting Results: Smartest and Funniest

This thread is archived, and closed to new comments.

Continue Farking




On Twitter


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.