As Congress debates increasing taxes on university endowments, what’s at stake for smaller institutions? Our Endowment Specialist John Griffith recently spoke with Institutional Investor about the potential ripple effects of these changes on spending and investment policy. John shared that “A 10 or 21 percent tax hike would not only hinder schools’ ability to provide financial aid—particularly the mid-sized colleges—but it would also force CIOs to rethink their asset allocation.”
From funding cuts to proposed tax hikes, university endowments are under attack on multiple fronts, leaving allocators justifiably nervous about what all these moves mean to long-term investment planning. In this week’s Essential Allocator, James Comtois breaks down what investment professionals think these mounting attacks could mean to endowments. Executive recruiter Charles Skorina says this “revenue grab” from the administration could destroy “one of the U.S.’s greatest competitive advantages.” Check it out here: https://okt.to/cb9r7t If you haven’t already, subscribe to Institutional Investor Magazine's Essential Allocator here: https://okt.to/3RFznp #InstitutionalInvestorMagazine #Endowments #Universities #Investing #Harvard #Taxes