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October 13, 1986 - Image 3

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Text
Publication:
The Michigan Daily, 1986-10-13

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The Michigan Daily - Monday, October 13, 1986 - Page 3

'U' awa
By TONY SHERMAN
University officials are
predicting that the new federal tax
bill will discourage donations to the
University, although they are
unsure of how much.
The tax bill, which still needs
President Reagan's signature to
become law, eliminates deductions
for gifts. Although Harvard
University economist Lawrence
Lindsey has predicted that U.S.
colleges face up to a 14 percent
decrease in donations, Jon
Cosovitch, the University of
Michigan's vice president of
development and communication,
does not forsee a drastic drop in
gifts.
LAST YEAR, the University
received more than $57 million in
gifts, and U.S. colleges received a
total of $11 billion. If Lindsey's
predictions are correct, gifts to the
University would drop $8 million
by1988.
But Cosovitch said such
predictions are premature and that,
in any case, the University's "area
of vulnerability will be slight."
He did concede, however, that
gifts to the University will decline,
and that the University is adopting
a "wait and see" attitude.
ACCORDING TO Bob
Debroudt, the University's director
of trusts and requests, the
University will mail approximately
20,000 letters to donors and friends
describing the new bill's impact on
giving. The letter also suggests
that individuals consult their own
accountants about contributions, he
said.
Last year, the University
_received its highest levels of
contributions in history, including
$45 million in cash, and $7.5
million in "appreciated property,"
or non-cash gifts.

its new tax law impact

Under the tax bill, donors in
high-income brackets - brackets
which include most of the
University's generous donors-will
feel pinch because the bill lowers
the tax rate from 50 percent to 28
percent and makes the cost of
giving 22 cents more expensive on
the dollar.
DONORS OF appreciated
property, such as land, artworks, or
stocks and bonds, will no longer be
able to deduct the current value of
their gifts. This is a significant
portion of total gifts, and is one
area in which Cosovich
acknowledges concern.
Even though it is impossible to
accurately forecast future decreases

in such gifts, Roy Muir, director of
the Campaign for Michigan, says
there "will be some negative
impact." But he is unable to predict
the extent of that impact.
Other University officials agree
that donations will decline. Either
overall contributions will fall or
contributions will stop growing
annually, according to Brad Canale,
engineering director of
development.
Jon Lowe, director of
development for the Law School
and a 1976 University law school
alumni predicts, "Next year will
hurt."
In the long run, Cosovitch said,
the University might be forced to

either cut
tuition to
donations.

programs or increase
make up for fewer

Rend
aMd
UWe
Dai~aq
C~uoaied

Daily Photo by LESLIE BOORSTEIN
Bouncing for dollars
Gregg Backer, a member of Sigma Alpha Mu, takes part in Bounce-a.
Thon to raise money for the American Heart Association.
Toledo students
cancel protests

TOLEDO, Ohio(AP) -
Students at the University of
Toledo backed down on their pledge
to occupy a shanty until the school
divests itself of investments in
companied that do business in
South Africa.
University president James
McComas had given the students
until 5 p.m. Friday to vacate the
shanty, but they tore it down Friday
morning after McComas said the
school will review its investments
and make a statement in three
weeks.
The shanty went up Thursday at
a rally where students called for
complete divestiture of the
university's holdings in companies
that do business with South Africa.
Martino Harmon, a spokesman for
the Black Student Union, which
sponsored the protest with other
organizations, said the rally was
held to protest that the school has
not done enough to end apartheid.
The plywood shanty was built as
a symbol of injustice to blacks
living under white rule in South
Africa, Harmon said.
Of the university's $23 million
in investments, about $7 million is
invested in companies that do
business in South Africa,

university spokesman Les Roka
said Friday.
In February, the university's
board of trustees voted to divest the
school of stock in companies that
have not signed the Sullivan
Principles, a code of conduct to
promote racial equality for black
workers in South Africa, Roka said.
Of the $7 million invested,
$200,000, or 3 percent, had been
invested in companies that had not
signed the Sullivan agreement,
Roka said.
Corrections
Donald Strachan is the assistant
dean and head of admissions at the
University's dental school. His
name was misspelled and his title
was incorrectly given in last
Wednesday's Daily.
Dave Susko, president of the
dental school's junior class, said in
last Wednesday's Daily "Prac-
titioners seem to be increasingly
competitive for clientele." The
Daily incorrectly attributed his
quote.
Comedian Jay Leno will appear
Oct. 19 at Hill Auditorium. The
location was incorrect in Friday's
Weekend Magazine.

Experienced help with Guaranteed Student Loans
No-service-charge checking with $299 minimum statement balance;
$5 monthly service fee if below minimum balance

i

Campus Cinema
Ran (Akira Kurosawa, 1985),
MTF, 7:45 p.m., Mich.
Yet another epic motion
picture from the man hailed as
"the greatest living director." A
violent retelling of King Lear.
Performances
Indian Music Concert-The
Stearns 2+2+2 Lecture/Concert
Series, 8 p.m., School of Music
Recital Hall (763-3637).
Ken Zuckerman, sarod, will be
assisted by Ray Spiegel on the
tabla in this presentation of
Indian music.
Speakers
Lenore McCullagh-
"Observations on the Crucial
Role of Volunteers as Non-
vested Players in Environmental
Protection," School of Natural
Resources, 3:30 p.m., 1040
Dana Bldg.
Robert Crabtree-"C-H and
H-H Activation: Agostic C-H
Bonds and Non-classical
Hydrides," Chemistry
Department, 4 p.m., 1200
Chemistry Bldg.
Chris Ramsay- Presentation

Religion, 8 p.m., MLB 3.
Furthermore
Showcasing Yourself to
the Employer-Career
Planning and Placement, 4:10
p.m., 3200 Student Activities
Bldg.
Blood Drive-Red Cross,
11:30 a.m.-5:30 p.m., East
Hospital Drive, (763-7003).
Square Dance Lessons-A-
Squares, 8:30 p.m., Union,
(665-5794).
Writers Series-L. Field and
P. Gover, Guild House, 8 p.m.,
802 Monroe, (662-5189).
Microcomputer Education
Center
Workshops-"Choosing a
Microcomputer," 1 p.m., 4003
School of Education Bldg.; "Pro -
gramming in dBase II PLUS,
Part II, 1 p.m., 3001 School of
Education Bldg.; "dBase III
PLUS, Part II, 8:30 a.m., 3001
School of Education Bldg., (747-
2424).

Thursday, October 30, Power Center - 7:30

Send announcemen, of
upcoming events to le
List," c/o The Michigan
Daily, 420 Maynard St.,

AMFR1CA'QeniIFrFai.JO STEN S

.£ j_ I _

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