Congress To Act?

LAST FALL THE SENATE finance committee considered subjecting college endowments to the same rules that apply to those of other nonprofits. Colleges, which on average spend 4.6 percent of their endowment, would be required to spend at least 5 percent. Dartmouth, whose planned endowment spending exceeds the proposed requirement, views the plan as threatening. What does Adam Keller, executive vice president for finance and administration, think?

"While Dartmouth representatives have not testified before Congress we are very concerned about the issues, and have been working through the National Association of College and University Business Officers and other organizations to edu cate legislators about the issues," says Keller. "Dartmouth is very concerned about the threats, not because it would have an impact on our endowment spending rate, which is scheduled to increase to 6 percent next year (FY 2009), but rather because such legislation would be usurping management responsibility that should stay at Dartmouth. Congress has imposed a minimum spending level on private foundations. Private foundations, which can be very closely held, are very different from colleges and universities..At Dartmouth we have multiple constituencies, including donors, students,

faculty, administrators and ultimately trustees participating in resource decisions. There is virtually no risk of a single controlling interest utilizing the endowment for any private benefit as there could be in a private foundation. Therefore, the circumstances that caused Congress to impose spending floors on private foundations are not relevant to universities."

DID YOU KNOW?

Dartmouth's new financial aid initiative, to take effect in July, provides an extra $2,950 to Dartmouth financial aid recipients so they can have more flexibility to participate in research, community service and internships during their off-terms.