The richest colleges and universities are incredibly stingy with their money
As a new batch of doe-eyed first-years make their way to their freshman dorms, they may want to hold off on the keg-stands and the naked mile-runs for a little while, or at the very least confine their celebrations to university property.
That's because colleges and universities are facing increasingly strained relationships with the towns and communities that house them, according to a new analysis from Bloomberg.
Fewer than half of colleges and universities with an endowment above $2 billion gave any unrestricted money to their towns last year, according to the report.
Wealthy universities have already come under scrutiny over the way they handle their money.
Earlier this month, a report from the Education Trust found that the wealthiest 4% of institutions are in the bottom 5% when it comes to admitting poorer college students.
That may start to change soon. Two congressional committees have sent formal requests to 56 of the nation's richest institutions of higher learning, asking for more information about spending and financial aid.
Though most colleges and universities enjoy tax exempt status — as they are technically not-for-profit entities — earlier this spring, Yale President Peter Salovey was forced to defend Yale's tax exempt status against a local bill which would have forced the school to pay property tax.
In 2011, Boston adopted new measures that asked nonprofit institutions with valuable property to begin making voluntary payments to the city. Of the 19 eligible colleges and universities, only five have made payments.