Nonprofits with Large Endowments are Saving, Not Spending

(from the Chronicle of Philanthropy) Nonprofits with large endowments are collecting more than twice as much money as they are spending on grants, facilities, and administrative and other costs, a new data analysis of 1,600 organizations by The Chronicle shows. In fact, for 253 of the more than 1,600 nonprofits studied, the dollars flowing into their endowments over six years exceeded the dollars flowing out by a ratio of more than four to one. Congress is taking a closer look at the issue... Among the concerns is that the richest nonprofit institutions are sitting on huge and growing reserves — their investment returns are not taxed — even as many students struggle to pay for postsecondary education.

Read the full article at The Chronicle of Philanthropy.

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