America’s Collegiate Offshore Investments
In recent years, American colleges and universities have been turning away from traditional investments and into more lucrative offshore ventures as a way to increase their tax-free endowments. Newly leaked documents from a Bermuda-based law firm, Appleby, highlighted how universities use certain tax loopholes by forming block corporations in tax haven countries such as the Cayman Islands. The creation of such block corporations is controversial. Some opponents argue that it creates an unfair advantage for non-profit institutions and allows universities to invest unethically while tuition rates increase. In response, universities noted the valuable service they provide in education and research but many declined to comment on how they invest their money. Texas Christian University acknowledged that they use block corporations as part of their endowment because of the practicality of the investment.
To read more about the leaked documents and offshore block corporations, click here.