Senator Steps Up Pressure on College Endowments

May 29, 2008

Senator Steps Up Pressure on College Endowments

Sen. Charles Grassley of Iowa is still considering proposing legislation that would require colleges and universities to distribute at least 5 percent of their endowments each year..

Mr. Grassley, the senior Republican on the Senate’s powerful Finance Committee, wrote in an opinion article published in The Chronicle of Higher Education to express concern that colleges and universities are not doing enough to make higher education more affordable.

Several major universities — including Harvard University, Yale University and Stanford University — have announced plans in recent months to reduce tuition costs and increase aid to students from lower- and middle-income families. Those plans followed a Finance Committee hearing last fall in which Mr. Grassley and others called for more scrutiny of college endowments.

But while the changes have mollified the concerns of some observers, Mr. Grassley writes that he is not yet convinced that all colleges and universities are doing enough to justify their tax-exempt status.

“Not only are higher-education institutions exempt from federal taxes, but their endowments are tax-free, and donations to them are tax-deductible. Part of the recent endowment spike came from the aggressive use of off-shore tax-avoidance strategies,” he writes. “Taxpayers pay for federal tax incentives to make higher education more accessible and affordable through 529 college-savings plans, a deduction for taxpayers filing jointly of up to $4,000 for tuition (depending on income), and the tax deductibility of interest on student loans.

“Such favorable tax treatment came through Congress, specifically through the Senate Finance Committee. Congress has an obligation to make sure those tax policies are working as intended.”

— Peter Panepento

Comments

Cheryl Moore, Ph.D.
410-542-3595. Note: She has published and presented on entrepreneurship.

This might be one way for the endowments to be spent.

An independent researcher has proposed
the use of a rating system to evaluate schools on entrepreneurship education.
>>>>>>>
>>>>>>> No Child Left Behind has forced education into relying
on standardized testing. Colleges also rely on standardized tests. “Standardized
testing does not provide a complete picture of students’ capabilities. Although
some standardized tests are necessary, other forms of evaluating schools can provide
important information,” said Cheryl Moore, Ph.D. who received her master’s
degree from Ohio State and doctorate from Ohio University.

>>> “Schools could be rated on how many students are being prepared
to be entrepreneurs,” proposed Dr. Moore. Students, parents and state governments
could use the rating system called Moore Entrepreneurs. It would enable schools
to be evaluated according to the percentage of students who are being prepared to
be entrepreneurs. A five star school would have 50% in training, a four star school
would have 40%, a three star school would have 30%, a two star school would have
20% and a one star school would have 10%.
>>>>>>>
>>>>>“Anyone who graduates from high school, college
or graduate school and is only prepared to be an employee is like someone hopping
around on one foot. To have both feet on the ground, a student needs to be prepared
to be both an employee and an entrepreneur. Then during the 30 or 40 years of working,
he or she can move from being an employee to being an entrepreneur. Entrepreneurship
can be taught across the curriculum and through the grades from kindergarten with
picture books to graduate school”, said the education advocate who has taught
at four universities.
>>>>>>>
>>>>> Dr. Moore pointed out that “Entrepreneurship awareness
can be woven into math, science, social science and language arts. It can be part
of a math word problem or a poem. Each student could create an entrepreneurship
portfolio.”
>>>>>>>
>>>>>>>When the student enters college, he or she will be looking
for training to start a non profit or for profit business in addition to being prepared
for employment. A teacher can be an entrepreneur. An artist can be an entrepreneur.
An engineer can be an entrepreneur.
>>>>>>>
>>>>>>>Dr. Moore said, “Entrepreneurship awareness is
to economic deveopment what health awareness is to the medical community.”
>>>>>>>
Cheryl Moore, Ph.D.
410-542-3595
Baltimore

— Cheryl Moore, Ph.D. Jun 5, 11:10 AM #

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