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There is a marked difference, in my mind between a charitable organization and a non-profit organization. A good charity, IMO, returns the large majority of its revenue and endowment earnings <em>directly</em> to the community it serves, in one form or another. I have no problem with charities being exempt from property tax.</p>
<p>Princeton is not a charity. What direct public benefit are they providing? Sure, they educate a few kids, but if Princeton’s reason for existence is education, why aren’t they using that $17 bil endowment to open campuses all over the country and bring a Princeton-level education to 50,000 kids instead of 5,000? Why does Princeton charge tuition when for a tiny fraction of their endowment (around 1%) it could be free for everyone? </p>
<p>Why should people get a tax deduction for a donation to an institution that in its current form has more money than it will ever be able to use?</p>
<p>I think you can legitimately question whether they are in fact a non-profit.</p>
<p>In one of those documents I linked to, there were examples of hospitals that lost their tax-exempt status because they were found to not be providing sufficient public benefit to justify their status. If that light was shone on Princeton, does it pass?</p>