More Scrutiny of University Enterprise Tax Exempt Status

Pay up!

We have from time to time noted the potential tax problems of the UCLA Grand Hotel project.  More generally, there is growing scrutiny of commercial-type activity conducted by universities that claim tax exemptions. 

Inside Higher Ed today points to a court decision that questions Princeton's tax exempt status.  It links to a local New Jersey newspaper:

A lawsuit that argues Princeton University violates the provisions of its tax-exempt status survived a university-led attempt to throw the case out Thursday. Plaintiffs in the case argue that, because Princeton is earning hundreds of millions of dollars in patent royalty income and is distributing some of that money to faculty, the school is deeply involved in commercial enterprise and isn’t entitled to its tax exemptions. The suit also takes aim at campus buildings that host extensive commercial activity, such as the Frist Campus Center and McCarter Theatre, which sells tickets to the general public for many events and performances...

Full story at http://www.nj.com/mercer/index.ssf/2013/06/lawsuit_challenging_princeton_universitys_tax-exempt_status_wont_be_dismissed.html#incart_river_mercer

The Inside Higher Ed story is at http://www.insidehighered.com/quicktakes/2013/07/01/suit-challenges-princetons-tax-exempt-status 

The tax folks are thinking they are owed:

A cautionary note on MOOC missionaries

William Bowen, the former president of Princeton, is generally a proponent of online education as a potential cost saver.  But in Inside Higher Ed today, there is a profile of Bowen and his views and it includes the following cautionary note:

Bowen... takes the hype about MOOCs with a grain of salt. “Missionaries don’t particularly want their methods tested – they are missionaries after all,” he warned. The missionaries include MOOC providers, the media, administrators and business-minded higher education policymakers, Bowen writes. “There is a real danger that the media frenzy associated with MOOCs will lead some colleges and universities (and especially business-oriented members of their boards) to embrace too tightly the MOOC approach before it is adequately tested and found to be both sustainable and capable of delivering good learning outcomes for all kinds of students...”

Full article at http://www.insidehighered.com/news/2013/03/29/bill-bowens-new-book-moocs-and-online-education

For whatever it means...

Above are the world rankings of universities from the British Times Higher Education magazine based on "academic reputation." [Click on the image to make it clearer.] The full list and info on the survey methodology is at:
http://www.timeshighereducation.co.uk/world-university-rankings/2013/reputation-ranking