The Miseducation of Glenn Beck

CNN's Headline News stopped being my goto news when they changed their format; I guess the simplicity of a 30 minute newscast twice an hour around the clock wasn't profitable. But what really made me shy away from them was their appropriation of the Fox News model and the hiring of Glenn Beck. Why? Because he says things like this.

The top five college and university endowments reported a combined value of over $100 billion at the end of 2007. That's five funds, a hundred billion in cash. Not a nickel in tax. Not an ounce of outrage.

Harvard University, which has the largest endowment in the country, has a total of $34.6 billion. To put into perspective just how much money that is, consider that the largest charitable foundation in the world, the Bill & Melinda Gates Foundation, has a total endowment of $37.3 billion.

But while their financial statements may look similar, their missions aren't. The Gates Foundation is working to cure malaria, develop new tuberculosis vaccines, and stop the spread of AIDS. Most of our colleges and universities are only working to spread the radical political views of some of their professors.

Yes, it's not like Harvard is educating thousands of young people every year, or providing economic stability to the city of Boston, or producing a slew of Nobel Prize winners. No, all they do is spread radical political views. Nope, they aren't trying to stop the spread of AIDS. Oh wait, yes they are. They have a whole institute devoted to AIDS research.

But wait, there's more:

For what's been estimated to be about $300 million a year (less than 1 percent of their endowment's value) Harvard could completely waive tuition, room and board for every single one of their students. Instead, they announced an increase in those fees of about 3.5 percent for next year. Being a student at Harvard will now cost a staggering $47,215 a year.

Doesn't Harvard know how many millions of Americans are struggling to afford college? Don't they want to pay their fair share and help those who are less fortunate?

Yes, they do. Which is precisely why Harvard has changed their financial aid rules such that families with incomes under $60,000 are not expected to contribute to their child's education.

But Glenn Beck seems to lack the basic knowledge of how endowments work:

What I do have a problem with -- and it's a big one -- is how Harvard spends that money. Or, maybe it would be more accurate to say how Harvard, doesn't spend that money.

Schools with large endowments (at least $500 million) reported spending an average of 4.4 percent of their stockpiles in 2007. Meanwhile, those same schools made an average of over 19 percent on their money.

And often, schools have no control over that money. Endowments are often set up such that a small percentage of the available income/earned interest can be used for very prescribed expenses. To spend more than the allotted amount would require approval, often from someone other than the school administration. To redirect funds is also often verboten. Harvard simply does not have as much control over its money as Mr. Beck thinks.

If Glenn Beck wants to talk about tax-exempt organizations that don't do much good with their wealth perhaps he should also take on some other targets. Like, let's say, religious institutions.

(image via National Association of Broadcasters)