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Brown Joins Colleges Ensnared by Federal Endowment Tax (1)

Feb. 18, 2022, 1:15 PM

For Brown University, posting the best investment return in the Ivy League added more than $2 billion to its endowment. It also thrust the school into an elite club: It reached the threshold for paying a federal tax on investment income.

Other schools expected to pay the tax include the University of Chicago, Vassar College, Wesleyan University, Denison University, Colby College, Davidson College and Harvey Mudd College, according to data released Friday by the National Association of College and University Business Officers and TIAA.

Colleges endowments booked average returns of 31% for ...