Endowment tax
Encyclopedia
Endowment tax is taxation of endowment
s. The city of Cambridge, Massachusetts
, has proposed taxing MIT and other major universities on these previously exempt, non-profit earnings. 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
Financial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
s. The city of Cambridge, Massachusetts
Cambridge, Massachusetts
Cambridge is a city in Middlesex County, Massachusetts, United States, in the Greater Boston area. It was named in honor of the University of Cambridge in England, an important center of the Puritan theology embraced by the town's founders. Cambridge is home to two of the world's most prominent...
, has proposed taxing MIT and other major universities on these previously exempt, non-profit earnings. A financial endowment
Financial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
is a transfer of money or property donated to an institution
Institution
An institution is any structure or mechanism of social order and cooperation governing the behavior of a set of individuals within a given human community...
, 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
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
' richest universities. The non-profit status of some institutions like hospitals has been questioned in the United States House Ways and Means Committee
See also
- List of U.S. colleges and universities by endowment
- Internal Revenue ServiceInternal Revenue ServiceThe Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
(US tax collection agency) - PILOTPILOT (finance)A PILOT is a payment in lieu of taxes , made to compensate a local government for some or all of the tax revenue that it loses because of the nature of the ownership or use of a particular piece of real property...
Payment in Lieu of Taxes