The tax-exempt status Harvard is worth billions of dollars However, a natural question arises over whether Trump can even take these actions against Harvard?
How Does Harvard Save Money As a Tax-Exempt Organization?
There are three direct ways a university with a tax-exempt status can save significant money:
These three tax advantages have important implications for Harvard. For instance, the New York Times reports that this endowment is around $53.2 billion. If it grows approximately 5% per year, it generates $2.66 billion in income that is not subject to tax since Harvard is tax-exempt. Harvard uses its endowment to generate those earnings each year.
