P. M. BRIEFING : Tax Laws Squeeze College Gifts
NEW YORK — New federal tax laws and the 1987 stock market crash put the squeeze on gifts to colleges and universities, with contributions declining in 1987-88 for the first time in 13 years.
“The boomy days appear to be over, on campus as on Wall Street,” concluded an annual survey released by the Council for Aid to Education.
It estimated that gifts to higher education totaled $8.2 billion in the 1987-88 school year, down 3.5% from the $8.5 billion the previous year.
John R. Haire, the council’s president, said donors apparently decided to make major gifts before Jan. 1, 1987, anticipating changes in federal tax law that made charitable contributions less advantageous. The October, 1987, stock market collapse further depressed the level of contributions, he said.
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