College Bound Brief #77**
Colleges live off of tuition and donations. The IRS’ current proposal to remove tax-exempt status from colleges would gravely hurt the latter bucket of money. In addition, removing tax-exempt status could affect colleges’ ability to issue tax exempt bonds causing further budgetary challenges.
Philanthropic donations to colleges help cover scholarships, pay for the operating budget, new building construction, and other important services. If donors lose the benefit of the tax deduction, many will opt to take their money elsewhere.
With colleges already facing budgetary crunches from federal and state dollars getting cut and demographic shifts, this latest proposal could push more colleges over the edge.
Source: IRS tax plan could imperil college finances, Moody’s says | Higher Ed Dive
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