<p>[Harvard?s</a> Role As a Nonprofit | Opinion | The Harvard Crimson](<a href=“http://www.thecrimson.com/article/2009/5/21/harvards-role-as-a-nonprofit-harvard/]Harvard?s”>Harvard’s Role As a Nonprofit | Opinion | The Harvard Crimson)</p>
<p>Hmmmm…
Hundreds and hundreds of millions of dollars…maybe more…every year in taxpayer subsidies…</p>
<p>Can I opt out…I don’t want my tax dollars going to Harvard…
I would rather see my tax dollars go to UC Berkeley…a public school.</p>
<p>"Harvard University is a nonprofit, not a business. This is one of the central arguments that we hear professors, politicians, and students make when they advocate for Harvard to be more socially and morally responsible. But does this claim mean anything? Should Harvard act any different as a nonprofit than as a business? The answer is yes—Harvard gains huge financial benefits as a nonprofit, and with these benefits come additional responsibilities toward the community that businesses do not always have.</p>
<p>The key difference concerns taxes. As a nonprofit, Harvard receives tax exemptions, deductions, and privileges that for-profit institutions must forgo. For example, besides innovative investing techniques, Harvard was able to build its endowment from $4.7 billion in 1990 to $37 billion in 2008 because it did not pay taxes on those gains. Relative to businesses, the federal government is subsidizing Harvard’s investment fund.</p>
<p>In addition, Harvard does not pay real-estate taxes. Instead, it makes voluntary payments in lieu of taxes. Last year, for all of Harvard’s property, it paid $1.9 million in lieu of taxes to the City of Boston. Boston officials estimate these payments would be 10 times as large if Harvard paid real-estate taxes. Partly due to these reduced expenses, Harvard currently owns over 923,000 square feet of property in Allston that are neither developed for Harvard’s purposes nor leased to Allston businesses. Harvard would be less likely to hold these land lots for long-term construction projects if it had to pay real-estate taxes on them.</p>
<p>As a nonprofit, Harvard also benefits from tax-deductible donations and a significant amount of federal grant money. Last year, Harvard received $651 million in donations. If donations to Harvard were not tax-deductible, this number would be a small fraction of this total. According to Harvard’s Office of Government, Community, and Public Affairs, Harvard received $535 million in federal grants in fiscal year 2008 that accounted for 82 percent of Harvard’s research revenue. Under the federal stimulus package, federal grants to Harvard are expected to increase considerably. Non-federally funded research is made possible through tax deductions on donations made by corporations and foundations."</p>