Schenkingen

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Schenkingen

July 30, 2026
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“The secret of great fortunes without apparent cause

is a crime forgotten, for it was properly done.”

Honoré de Balzac’

CASE FAQ for Standards: Definition of Educational Philanthropy

Are they hedge funds with a side hustle in teaching, research and building construction? Are they tricked out memorial gardens for philanthropists? In either case leaders of educational settlements are expected to act in the best interests of both their institution and their donors, and to maintain high standards of transparency, accountability, and ethical conduct when accepting charitable gifts.

University endowments are comprised of money or other financial assets that are donated to academic institutions. Charitable donations are the primary source of funds for endowments. Endowment funds support the teaching, research, and public service missions of colleges and universities.

In the case of endowment funds for academic institutions, the income generated is intended to finance a portion of the operating or capital requirements of the institution. In addition to a general university endowment fund, institutions may also maintain a number of restricted endowments that are intended to fund specific areas within the institution, including professorships, scholarships, and fellowships.

More

Council on Foundations

2021 NACUBO-TIAA Study of Endowments

University of Michigan: Policy Guidelines for Naming of Facilities, Spaces and Streets

University of Buffalo: Naming University Properties, Facilities, and Academic and Non-Academic Programs

Northern Arizona University: Naming of Facilities, Programmatic Units, or Fund for Individuals or Organizations

Dematerialization

Digital Campus

Dartmouth University Endowment Report 2023

https://www.dartmouth.edu/investments/docs/dartmouthendowmentreport2023.pdf

 

The largest philanthropic gift ever given to a United States college or university is the donation of $9.6 billion made by MacKenzie Scott to various organizations, including several universities, in 2020. Scott, the ex-wife of Amazon founder Jeff Bezos, made the donation as part of her commitment to give away the majority of her wealth to charitable causes. The universities that received donations from Scott include historically black colleges and universities, community colleges, and research universities such as the University of California, San Diego, and Johns Hopkins University. The donation was considered significant not only for its size but also for its focus on supporting organizations that serve underrepresented and marginalized communities.

There are several standards and best practices that are generally followed by universities and colleges when accepting charitable gifts. These standards are designed to ensure that the gift is used effectively and that the interests of both the donor and the institution are protected. Some of the key standards include:

  1. Transparency and accountability: Universities and colleges are expected to be transparent about how gifts are used and to provide regular reports to donors on the impact of their gifts.
  2. Due diligence: Universities and colleges are expected to conduct due diligence on potential donors to ensure that their gifts do not create conflicts of interest or ethical concerns.
  3. Gift acceptance policies: Many universities and colleges have established gift acceptance policies that outline the types of gifts that will be accepted and the procedures for accepting them.
  4. Donor recognition: Universities and colleges are expected to recognize donors in an appropriate and meaningful way, while avoiding actions that could be seen as an endorsement of the donor’s business or political interests.
  5. Ethical fundraising: Universities and colleges are expected to follow ethical fundraising practices, including avoiding pressure tactics or misleading information, and ensuring that donors are aware of any tax implications of their gifts.

Overall, universities and colleges are expected to act in the best interests of both their institution and their donors, and to maintain high standards of transparency, accountability, and ethical conduct when accepting charitable gifts.

Infotech 300

Crain Memorial Research Grant

July 30, 2026
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The GASB awards research grants of up to $10,000 each for projects undertaken by graduate students that inform its standard-setting activities.  The award honors Gilbert W. Crain whose work helped establish governmental accounting as a rigorous academic discipline.  The typical application cycle has proposals due at the end of May, with awards announced about a month later before a new cycle resumes.

Gilbert W. Crain Memorial Research Grant

Topics of current interest include:

  • Digital assets
  • Digital financial reporting
  • Environmental credits
  • GAAP utilization
  • Fund balance
  • Essentiality of note disclosures
  • Other projects on the GASB technical agenda.

Related:

The joint FASB/GASB Postgraduate Technical Assistant Program places outstanding graduate accounting students with the Boards for a year, where they participate directly in standards development and research—a remarkable pathway into the accounting standards profession.

Endowment Standards

July 30, 2026
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Marquee US universities like Stanford, Vanderbilt, Duke, Carnegie Mellon and others were built upon industrial fortunes. The pattern continues to this day because of the scale of recent personal private sector wealth and reduced government support.
Today at the usual hour we update our past coverage with a question about how long the build-out of higher education settlements that depend F-1 income can continue.  Use the login credentials at the upper right of our home page.

Schenkingen

The Case Against Income Tax Exemption for Nonprofits

Tax-Free Bonds

Carnegie Classifications

Capitalization Guidelines

 

Relata:

Uniform Prudent Management of Institutional Funds Act

Financial Accounting Standards Board (FASB) Guidelines: Topic 958

NACUBO Commonfund Study of Endowments

Ryan Fieldhouse

July 30, 2026
mike@standardsmichigan.com

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Northwestern University Facilities 


Standards Illinois

There was a time when college buildings were most often named for scholars, presidents, and teachers whose lives were devoted to advancing knowledge. Their names reminded students that universities exist first to discover, preserve, and transmit learning.

Today, many new buildings bear the names of benefactors whose generosity made their construction possible. Modern research laboratories, residence halls, performing arts centers, and athletic facilities often require gifts measured in the tens or hundreds of millions of dollars. The name recognizes not only financial support but also a lasting commitment to the institution’s future.

Neither tradition is without merit. One honors intellectual achievement. The other honors stewardship. Together they tell the story of how universities endure: ideas require both those who create them and those who provide the means for them to flourish.

Perhaps the question is not whether a building should bear the name of a scholar or a donor, but whether its name reminds future generations why the institution was built in the first place.

Tax-Free Bonds

July 29, 2026
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Current Referenda | Ballotpedia

 

As the adage goes: “The cure for high prices, is high prices”. Today–ahead of the August primary elections in the United States (when bond referenda appear on ballots — we explore fiscal runaway with particular interest in the instruments that finance construction of the real assets. We recap what we have been doing for 30-odd years placing downward pressure on life-cycle cost.

Perspective:

    • The largest school bond referendum on ballots in November 2025 is the $1.4 billion package for Richardson Independent School District (ISD) in Texas.
    • University of Michigan’s 2025  $2 billion general revenue bonds
    • New York University’s 2025 $2.18 billion bonds through the Dormitory Authority of the State of New York
    • The largest school bond referendum on ballots in November 2024 was Measure US for the Los Angeles Unified School District (LAUSD) in California, totaling $9 billion.
    • In the November 2022 elections, a significant number of school bond referenda were presented to voters across the United States. For example, in Wisconsin alone, there were 57 successful capital referenda amounting to nearly $2.1 billion in authorized debt​ (Wisconsin Policy Forum)
    • In Texas, Central Texas schools had a total of $4.24 billion in bonds on the ballot, covering various propositions for school facilities, technology improvements, and athletic facilities​ (Fox 7 Austin)
    • In California and Arkansas, bond measures totaling $74 million — including school choice — were aimed at addressing school facility improvements​ (The74Million)
    • Voters in 16 North Carolina counties approved bond issues totaling $4.27 billion, with $3.08 billion dedicated to K-12 public school construction and improvements​ (EducationNC)

“The cure for high prices, is high prices” — They say.

Today we explore fiscal runaway in the US education “industry” with particular interest in the financing instruments for building the real assets that are the beating heart of culture in neighborhoods, cities, counties and states.  We steer clear of social and political issues.  The marketing of these projects — and how the loans are paid off — provides insight into the costs and benefits of this $100+ billion industry; the largest non-residential building construction market in the United States.

Educational Settlement Finance

We cannot do much to stop the hyperbolically rising cost of administrative functionaries but we can force the incumbents we describe in our ABOUT to work a little harder to reduce un-used (or un-useable) space and reduce maintenance cost.  Sometimes simple questions result in obvious answers that result in significant savings.

More recently hybrid teaching and learning space, owing the the circumstances of the pandemic, opens new possibilities for placing downward pressure on cost.

What the University of Michigan has done to reduce the life cycle cost of the real assets of educational settlements


Gallery: School Bond Referenda


Regulation or Money-Laundering?

Every school building begins twice: first in the bond market, and later on the construction site.  After Architect-Engineers and Building Construction Contractors (many of whom finance election advocacy enterprises) the following organizations are involved in placing a bond on the open market:

  1. School Districts: Individual school districts issue bonds to fund construction or renovation of school facilities, purchase equipment, or cover other educational expenses. Each school district is responsible for managing its own bond issuances.
  2. Colleges and Universities: Higher education institutions, such as universities and colleges, issue bonds to finance campus expansions, construction of new academic buildings, dormitories, research facilities, and other capital projects.
  3. State-Level Agencies: Many states have agencies responsible for overseeing and coordinating bond issuances for schools and universities. These agencies may facilitate bond sales, help ensure compliance with state regulations, and provide financial assistance to educational institutions.
  4. Municipal Finance Authorities: Municipal finance authorities at the state or local level often play a role in facilitating bond transactions for educational entities. They may act as intermediaries in the bond issuance process.
  5. Investment Banks and Underwriters: Investment banks and underwriters assist educational institutions in structuring and selling their bonds to investors. They help determine bond terms, market the bonds, and manage the offering.
  6. Bond Counsel: Bond counsel, typically law firms, provide legal advice to educational institutions on bond issuances. They help ensure that the bond issuance complies with all legal requirements and regulations.
  7. Rating Agencies: Rating agencies, such as Moody’s, Standard & Poor’s, and Fitch Ratings, assess the creditworthiness of the bonds and assign credit ratings. These ratings influence the interest rates at which the bonds can be issued.
  8. Investors: Various institutional and individual investors, including mutual funds, pension funds, and individual bond buyers, purchase school and university bonds as part of their investment portfolios.
  9. Financial Advisors: Financial advisory firms provide guidance to educational institutions on bond issuances, helping them make informed financial decisions related to borrowing and debt management.
  10. Regulatory Authorities: Federal and state regulatory authorities, such as the U.S. Securities and Exchange Commission (SEC) and state-specific agencies, oversee and regulate the issuance of bonds to ensure compliance with securities laws and financial regulations.

These organizations collectively contribute to the process of issuing, selling, and managing school and university bonds in the United States, allowing educational institutions to raise the necessary funds for their capital projects and operations. The specific entities involved may vary depending on the size and location of the educational institution and the nature of the bond issuance.

Bond issuances affect local property values.

 

Current Projects

July 29, 2026
mike@standardsmichigan.com
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We track action in the catalog of this consortia standards developer because we continually seek ways to avoid spending a dollar to save a dime; characteristic of an industry that is a culture more than it is a business.

Compensation—Retirement Benefits—Defined Benefit Plans | Comments due: August 10, 2026

 

Current Projects

 

 

While not an ANSI accredited the FASB/GASB standards setting enterprise’s due process requirements (balance, open-ness, appeal, etc.)* are “ANSI-like” and widely referenced in education enterprise management best practice.  Recent action in its best practice bibliography is listed below

ACCOUNTING STANDARDS UPDATES ISSUED

For obvious reasons, we have an interest in its titles relevant to Not-For-Profit Entities

WHAT IS THE FASB NOT-FOR-PROFIT ENTITY TEAM


At present the non-profit titles are stable with the 2020 revision.  That does not mean there is not work than can be done.  Faculty and students may be interested in the FASG program linked below:

Academics in Standard Setting

Also, the “Accounting for Environmental Credit Programs”, last updated in January, may interest colleges and universities with energy and sustainability curricula.  You may track progress at the link below:

EXPOSURE DOCUMENTS OPEN FOR COMMENT

The Battle about Money

We encourage our colleagues to communicate directly with the FASB on any issue (Click here).   Other titles in the FASB/GASB best practice bibliography are a standing item on our Finance colloquia; open to everyone.  Use the login credentials at the upper right of our home page.

 

Issue: [15-190]

Category: Finance, Administration & Management, Facility Asset Management

Colleagues: Mike Anthony, Jack Janveja, Richard Robben


Workspace / FASB GASB

Educational Settlement Finance

July 29, 2026
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Giovanni Paolo Panini, An architectural capriccio with figures among Roman ruins

The post-pandemic #WiseCampus transformation requires significant capital to meet the sustainability goals of its leadership.  Campuses are cities-within-cities and are, to a fair degree, financed in a similar fashion.  Tax-free bonds are an effective instrument for school districts, colleges and universities — and the host community in which they are nested — for raising capital for infrastructure projects while also providing investors with, say $10,000 to $100,000, to allocate toward a tax-free dividend income stream that produces a return in the range of 2 to 8 percent annually.

An aging population may be receptive to investment opportunities that protect their retirement savings from taxation.

Once a month, we walk through the prospectuses of one or two bond offerings of school districts, colleges and universities and examine offering specifics regarding infrastructure construction, operations and maintenance.  We pay particular attention to details regarding “continuing operations”. Somehow the education industry has to pay for its green agenda.  See our CALENDAR for the next Finance colloquium; open to everyone.

The interactive map provided by Electronic Municipal Market Access identifies state-by-state listings of tax-free bonds that contribute to the construction and operation of education facilities; some of which involved university-affiliated medical research and healthcare delivery enterprises.

CLICK ON IMAGE FOR INTERACTIVE MAP

 

If you need help cutting through this list please feel free to click in any day at 11 AM Eastern time.  Use the login credentials at the upper right of our hope page.  We collaborate with subject matter experts at Municipal Analytics and UBS.

Issue: [Various]

Category: Administration & Management, Finance, #SmartCampus

Colleagues: Mike Anthony, John Kaczor, Liberty Ziegahn

*We see the pandemic as a driver for a step-reduction in cost in all dimensions of education communities.  We coined the term with a hashtag about two years ago.

*College and university infrastructure projects are classified with public school districts under the rubric “municipal bonds” at the moment.  CLICK HERE for more information.

 


More:

Duke Law Review:  Don’t ‘Screw Joe the Plummer’: The Sausage-Making of Financial Reform

An Expanded Study of School Bond Elections in Michigan

School Bonds Michigan

July 29, 2026
mike@standardsmichigan.com
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Ballotpedia

Exterior Appearance of a One Room School House

History of One Room Schools | Central Michigan University

 

School Construction Bonds Confirmed for August 2026 Election Referenda

School District Amount Election Date
Harper Creek Community Schools (Calhoun County, MI) $28,000,000 Aug 4, 2026
Homer Community School District (Calhoun County, MI) $11,920,000 Aug 4, 2026

For reasons that may be obvious, construction companies make markets with their public relation enterprises.

Triangle Construction

About

Why the 10-Year Treasury Note Matters to School Bonds

The yield on the U.S. 10-year Treasury note is the principal benchmark for long-term borrowing throughout the American economy, including the municipal bond market that finances schools, colleges, and universities. When Treasury yields rise, investors generally expect higher returns from tax-exempt school bonds as well. To attract buyers, educational institutions must offer higher interest rates, increasing the cost of financing new classrooms, laboratories, residence halls, athletic facilities, and utility infrastructure.

Conversely, when 10-year Treasury yields decline, borrowing costs often ease, enabling school districts and universities to finance capital improvements at lower interest expense and reducing the long-term burden on taxpayers or tuition revenue. Although the final interest rate on any bond issue also reflects the issuer’s credit quality, market demand, insurance, and overall economic conditions, daily movements in the 10-year Treasury yield remain one of the most closely watched indicators of the direction and relative cost of educational facility financing.

As a rule of thumb, every 0.25 percentage point (25 basis point) increase in the borrowing rate adds about $25,000 per year in interest for every $10 million of outstanding principal.

Albert Kahn detail at the Alexander G. Ruthven Building at the University of Michigan

Central Utility Plant — $407.8 million

July 29, 2026
mike@standardsmichigan.com
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Standards Kentucky

Rendering of a campus utility plant with two large white tanks, a fenced perimeter, pedestrians and a car, set beside a modern brick building connected by a skybridge.

Board of Trustee Minutes approving this project

When universities speak of “campus growth,” what kind of growth do they mean? More students?  (At the moment, international students comprise about 5 percent of total enrollment) More research? (61 percent of graduate students were international) More healthcare? (Healthcare enterprises are moving off campus to where the patients are).  The traditional campus concentrated infrastructure — the modern academic health system distributes it.  (At what point does a university cease to be a campus and become a regional enterprise?)  More computing? (Electric or absorption chillers).  Or are they simply replacing infrastructure that has reached the end of its useful life?

Facilities Management | Utilities and Energy Management

'Behind the Blue': Addressing student mental health and well-being at UK | UKNow

Data Center Bust & Boom

July 28, 2026
mike@standardsmichigan.com
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"One day ladies will take their computers for walks in the park and tell each other, "My little computer said such a funny thing this morning" - Alan Turing

Data centers in colleges and universities are crucial for supporting the extensive technological infrastructure required for modern education and research. These centers house critical servers and storage systems that manage vast amounts of data, ensuring reliable access to academic resources, administrative applications, and communication networks. They enable the secure storage and processing of sensitive information, including student records, faculty research, and institutional data.

Uptime Institute Tier Classification

Moreover, data centers facilitate advanced research by providing the computational power needed for data-intensive studies in fields like bioinformatics, climate science, and artificial intelligence. They support virtual learning environments and online course management systems, essential for the increasingly prevalent hybrid and online education models. Efficient data centers also contribute to campus sustainability goals by optimizing energy use through modern, eco-friendly technologies.

ANSI/TIA 942 Data Center Infrastructure Standard

Additionally, robust data center infrastructure enhances the university’s ability to attract top-tier faculty and students by demonstrating a commitment to cutting-edge technology and resources. They also play a vital role in disaster recovery and business continuity, ensuring that educational and administrative functions can resume quickly after disruptions. Overall, data centers are integral to the academic mission, operational efficiency, and strategic growth of colleges and universities.

Standards distinguish meaningful patterns from imagined ones.

We have followed development of the technical standards that govern the success of these “installations” since 1993; sometimes nudging technical committees — NFPA, IEEE, ASHRAE, BICSI and UL.   The topic is vast and runs fast so today we will review, and perhaps respond to, the public consultations that are posted on a near-daily basis.  Use the login credentials at the upper right of our home page.

Related:

Oakland University examining feasibility of hosting data center on campus

University of Virginia — Fontaine Research Data Center

Ernst & Young LLP: Why there is no silver bullet for data center financing

Data Center Growth

Gallery: Supercomputers & Data Centers

Data Center Wiring

Datacenter Architecture

Power Management For Data Centers Challenges And Opportunities

Data Center Operations & Maintenance

Inauguration of New Supercomputer

Big Data Applications in Edge-Cloud Systems

Supercomputer Tour

Data Center Metrics

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