Should University Donations Trigger Tax Breaks for the Wealthy?

Radcliffe,Quadrangle,(the,Quad),At,Harvard,University

Universities big and small receive donations from many different sources, including wealthy alumni. However, not all donations are created equal and because the wealthy donors get a huge tax break for their significant donations, some wonder if that is really fair.

For example, Nike co-founder, Phil Knight, recently donated $400 million to Stanford, where he attended business school. That donation will give Knight a $158 million tax break. Some find that in of itself unfair, but others question why some schools, which already have deep pockets anyway, get such large sums of money without being taxed for it? Plus, the majority of the donations are given to these top schools, while other less prestigious universities are often left scrambling for much-needed resources.

However, on the flip side, many donors would argue that they make these donations for true philanthropic purposes and not for the added benefit of a large tax break. Some counter-argue that all the donation money could be used for better purposes. However, there’s no question that the nation’s top universities help the country in many industries, as well as give the economy a boost in many forms as well, including training thousands of the brightest minds.

Of course, it’s an argument that has no easy answer, but probably one that won’t get much traction, because wealthy alumni have always been able to donate their money to the universities or causes they choose. That is not likely to change any time soon.

Posted in
Building a High Trust Organization Requires Respect

Building a High Trust Organization Requires Respect

Building a High Trust Organization Requires Respect One of the most important aspects in the success of any organization is trust. Employers have to be able to trust their employees, and at the same time, employees need to trust their employers. Additionally, clients must be able to trust their suppliers. Without trust it is very…

choose

How to Choose Whom to Lend to?

How to Choose Whom to Lend to? The world runs on money, and those who have the money typically control how things are run. That’s a very broad and general statement, and of course, there are many variables but for the most part, when money talks people listen. Thus, the role of venture capitalists, banks…

leadership

Important Qualities for Practicing Leadership

Important Qualities for Practicing Leadership What makes a great leader? There are several answers to this question and it really depends on whom you ask. I meet with many great business leaders and while they often identify many of the same qualities of great leadership no two answers are exactly the same. It usually takes…

Top Tech Issues That President Trump Will Face

Top Tech Issues That President Trump Will Face

Top Tech Issues That President Trump Will Face Just as the rest of the country waits in anticipation of President-elect Donald Trump’s inauguration, so too does the tech industry. It’s no secret that several top-level executives from more than one of the largest tech companies in America have clashed at times with the president-elect. However,…