Public colleges and universities have long turned to institutionally related foundations ("IRFs") to raise private support and manage endowments and other financial assets. From the start, however, IRFs have also served as vehicles enabling public institutions to engage in real estate transactions and related entrepreneurial ventures…

Colleges and universities with mounting deficits may be tempted to sell surplus land for profit, but this is never a smart long-term choice. Through joint ventures and innovative financing, institutions can transform such holdings into development projects. In the current economy, there may be increased interest in such sites. (MSE)

For colleges and universities, development of underused assets can be compatible with or supportive of the institution's purpose and also be financially rewarding. Providing alumni retirement housing can enhance institutional ties with alumni, in turn boosting recruitment and fund raising. Successful development requires a unique blend of…

The Tax Reform Act of 1984 has sharply limited the tax advantages for private investors to enter into real estate sales/leaseback agreements with exempt organizations. The impact the Tax Reform Act of 1984 has on sales/leaseback agreements involving tax-exempt organizations is examined. (Author/MLW)

For small, private institutions, the real estate pooled income fund can be ideal for constructing new facilities, especially if the facility will produce revenue. Even a public or well-endowed private institution may have a unique project for which a pooled income fund may be a nontraditional funding solution. (MSE)

College development officers are encouraged to assess a prospective donor's contacts, interest, and ability to give to the institution, and are offered a number of formulas for determining the solicitation amount. They include formulas based on prior giving, net worth (income, stock holdings, real estate), and assets (income, liquid assets, real…

Trends in innovative investment of college funds are discussed, and the nontraditional, entrepreneurial investments of Bowdoin, Bryn Mawr, Duke, and the Universities of Missouri at Kansas City, Utah, and Virginia are described. (MSE)

Tax-exempt leasing is examined and compared to other financing mechanisms, and its applicability and the variety of structuring options available to public colleges and universities as lessees are explored. (MSE)

The Real Estate Investment Trust, a companion organization to the Common Trust, allows colleges to commit as little as $50,000 for investments in commercial properties at minimum risk, which could protect endowments while providing returns comparable to those of the stock market. (MSE)

Under existing laws, the federal and some state and local agencies can hold current real estate owners liable for cleaning up property contaminated with hazardous wastes. This applies whether the property is purchased or comes as a gift. Schools should develop hazardous-gift policies and investigation procedures. (MSE)

A college or university thinking of leasing out facilities for an auxiliary activity on campus should consider including a percentage rent provision in the contract, to benefit from increased sales. Issues to consider include definitions and reporting of gross sales, audits of reported sales, and auditing procedures and reporting. (MSE)

Attributes of real estate that make it a desirable investment for institutional endowment funds include the uniqueness of each property, its function as a hedge against inflation, its function in stabilizing portfolio volatility, and the potential for income and diversification. (MSE)

Santa Clara University (California), located where housing costs are high, has developed a faculty housing assistance program to retain faculty. It consists of a shared appreciation mortgage loan, a low interest down payment loan program, and a rental stipend program to give tenure-track faculty an opportunity to save for home purchase. (MSE)

Many small, private colleges are examining aggressive ways of economically developing their land and other physical assets by strategies ranging from direct ownership of tangible property to joint and participating ownership arrangements consisting of leases, financing, and partnerships. In all cases, however, potential tax consequences should be…

A campus's physical presence typically serves as the "front door" for key audiences and important constituencies, creating an initial and often enduring image within the community from which it hopes to attract students, faculty, and staff. Effective real-estate management presents opportunities to design a more inviting welcome sign.…