Eluding the Endowment Tax

Despite unknowns, colleges and universities are looking at investment and spending strategies to dodge a new tax on net investment earnings. Managing director at Cambridge Associates, Tracy Filosa, says in light of the new tax bill we are working to provide estimates and think about what the implications might be in terms of the cost of the tax.

“For private foundations, it generally has made sense to continue pursuing the highest possible long-term rates of return, Filosa said. The benefits of those returns tend to outweigh tax savings that could be realized by shifting investment strategies to minimize tax burden.”

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