Posts Tagged ‘endowment tax changes’
The E&F Advocate: Now a Law – The One Big Beautiful Bill Implications for Endowments & Foundations
The recently passed “One Big Beautiful Bill” (OBBB) represents the most consequential legislative package for U.S. endowments and foundations in over a decade. While sweeping in scope, its most significant implications for our community fall into three categories: tax reform, climate and infrastructure capital, and university governance provisions. Tax Code Overhaul: Pressures on Investment…
Read MoreThe E&F Advocate: Impact of H.R.1 OBBBA on Endowments and Foundations
H.R.1 OBBBA will cause significant changes to endowment and foundation taxes in terms of a transition from flat to tiered tax rates, with various potential implications and impacts for universities and foundations. University Endowments The current flat 1.4% excise tax on net investment income for private colleges and universities would shift to a tiered…
Read MoreThe E&F Advocate: Endowment Turbulence – A Crisis at the Crosswinds of Politics, Policy, and Portfolio Strategy
photo credit: ideogram.ai Back in calmer times, larger endowments operated with seeming invisibility—quietly compounding capital over decades, shielded from public glare. Fast forward to today, these capital pools sit squarely in the eye of a brewing political and financial storm. Harvard, Yale, Princeton, and Columbia—once synonymous with strategic patience and long-termism—are now recalibrating rapidly. The…
Read MoreThe E&F Advocate: Key Takeaways on Proposed Endowment Tax Changes
photo credit: ideogram.ai The proposed endowment tax changes aim to increase the current 1.4% excise tax on net investment income of certain private colleges and universities to rates as high as 21% or more. Additionally, there are proposals to broaden the tax’s applicability by lowering the endowment assets per student threshold from $500,000 to…
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