Compliance Questionnaire, new Form 990 Schedule to Boost

Transparency of Financial Reporting and Operations

The first glimpse into what promises to be a tumultuous year

for tax-exempt colleges and universities was offered on

September 8, when a Senate Finance Committee Roundtable

convened to focus on the issue of mandatory endowment

payouts to increase student aid.

The half-day public event was co-chaired by Senator Charles

Grassley (R-IA) and Representative Peter Welch (D-VT), and

featured panelists from leading colleges and universities, as well as other industry experts. Senator Grassley, ranking

member of the Committee, has threatened to introduce

legislation to require institutions to spend up to 5 percent of their endowment assets each year. However, he expressed gratitude to those colleges that have already increased the amount they spent on financial aid, and encouraged other institutions to "look inward and see what could be selfcorrected."

One of the more significant developments to arise from the

session was the Senator?s request that the IRS and Treasury

create a new Form 990 schedule for colleges and universities. The new Form 990 requires organizations to provide greater breadth and depth of detail into their operations.

For more information, please read full bulletin.