The Senate Finance Committee continues its push to convince colleges with huge endowment funds to guarantee a payout of 5%. This parallels the exiting rule for philanthorpic foundations (however this 5% includes their expenses including offices, salaries, and usually stipends for trustees). See this New York Times article for more information.
Northwestern University's president was quoted in the article. I disagree with his stance. I agree with the Senate that these endowments should distribute 5%. This is such a low impact it should be done. I would also recommend the Senate tackle the 5% issue of allowing philanthropic foundations to count expenses to their 5% rule. These foundations should be giving 5% to charitable causes directly with expenses on top of that. This might cause them to tighten their administrative costs while having a greater impact on society.
Tom Wilson
Author, Winning Gifts
Permanent Link: Senate Pressing Leading Colleges on Endowments
http://majorgiftsguru.com/2008/01/senate-pressing-leading-colleges-on.html
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