Should Colleges Worry Over Plan To Cap Deductions?

Ann McClure's picture

The scenic campus of Colgate University in upstate New York is enjoying more than a fresh coat of paint these days.

New buildings include the Robert H.N. Ho Science Center and the Trudy Fitness Center. The Case Library was refurbished and renamed, and includes the new Geyer Center for Information Technology. There's also $142 million in the coffers for financial aid — all the fruits of a recent $480 million fundraising campaign.

Colgate cast a wide net. But like most big fundraising campaigns, particularly in higher education, the lion's share came from wealthy benefactors rewarded in return with a combination of altruistic satisfaction, naming rights — and a big tax deduction.

Now that tax deduction may be in jeopardy, and some in higher education are worried.

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