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Endowments Of Higher Education Institutions And Individual Income Tax Policy: Wealth Erosion From A Loss In Charitable Contributions, Jennifer W. Siebenthaler

Theses and Dissertations--Educational Policy Studies and Evaluation

The most significant tax overhaul bill in over thirty years was enacted in 2017 and expected to have wide-ranging effects. The Tax Cuts and Jobs Act includes numerous policies that directly and indirectly impact the higher education sector and the effect to endowments was not addressed in the public debate leading up to enactment. Unlike expendable gifts, a reduction in endowment contributions has a cumulative effect because a gift to an endowment can benefit all subsequent years. Each year following a contribution, investment income earned on the original gift is available for spending and benefits escalate over time in amount, …