Agree in principle, but 1 year seems low. Isn't the purpose of an endowment primarily to generate ongoing income? I think somewhere in the neighbor hood of 20

Agree in principle, but 1 year seems low. Isn't the purpose of an endowment primarily to generate ongoing income? I think somewhere in the neighbor hood of 20 years worth of expenses would be more reasonable. (Assuming a conservative 5% return on investment, the endowment would not be taxed on capital required to generate 1 year of operating expenses in income each year.) Alternatively, perhaps a tax could be levied only on any income to the endowment beyond 1 year's worth of operating expenses.