Are college and university endowments hoarding their money? Senator Charles E. Grassley, (R-Iowa) thinks so. And he wants to do something about it. He wants to require colleges and universities to spend at least five percent of their endowment every year, according to the Chronicle of Higher Education.
Grassley is not alone. Last week his idea gained the support of Steven T. Miller, commissioner of the IRS's tax-exempt division. In remarks made at Georgetown University and published by , Miller said that the IRS was considering ways to make sure that colleges spend their endowments at at a rate that reflects the size of their assets.
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