"Congressional aides, Internal Revenue Service officials, and others at an American Bar Association meeting on nonprofit tax issues Friday made abundantly clear that colleges and universities should expect plenty of scrutiny in coming months about their operations and whether they are spending their money effectively," Inside Higher Ed reports. "Not only have other members of Congress joined Sens. Charles Grassley and Max Baucus in questioning whether colleges are spending enough from their endowments, but as the Internal Revenue Service contemplates expanding its examination of whether colleges and other charities are fulfilling their public purposes in line with their wealth, the Federal Trade Commission is also seeking expanded power to regulate nonprofit groups, including educational ones. The most visible efforts, by far, remain centered in the Senate Finance Committee, where Grassley, the panel’s senior Republican, and Baucus, a Democrat who is its chairman, are several years into a review of an inquiry into tax-exempt groups on a wide range of fronts."

You can read the complete May 12, 2008 Inside Higher Ed article on-line.

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