4 ms·
>Another source of comfort is the fact that these fantastical figures are uncritically accepted by the Department of Education and, apparently, the IRS. The ar
by PopAlongKid 3y ago
>Another source of comfort is the fact that these fantastical figures are uncritically accepted by the Department of Education and, apparently, the IRS.
The article mentions IRS Form 990 several times. This is "Return of Organization Exempt From Income Tax", so the IRS would not necessarily care about the phantom accounting. Their primary concern is that the organization is truly non-profit and qualified to be exempt from tax.
- tptacek 3y agoI think the article agrees that the accounting here is not trustworthy, right?
- rahimnathwani 3y agoTheir primary concern is that the organization is truly non-profit and qualified to be exempt from tax. I guess the proportion of a university's revenue reported as being paid out in grants might influence the IRS's determination of whether the institution is providing enough public benefit to maintain its non-profit status? An increase in sticker price (with no increase in net price) would make this ratio higher, making it look like the college is spending a large % of revenue on public benefit?