Corporation is an apt appellation for Harvard and other Ivy League schools, considering they operate more like for-profit businesses than educational institutions. Unlike businesses, however, they lack shareholders to hold them accountable. This makes them models of the left’s “stakeholder capitalism” paradigm.
The Harvard Corp. consists of 13 members, including the president. It is self-selecting—members elect new members—and boasts that it is “the oldest corporation in the Western Hemisphere.” Governing bodies of other Ivy League schools, including Yale and Columbia, are also referred to as corporations, which are structured to limit alumni influence in their affairs.
The Internal Revenue Service recognizes Harvard and most private colleges as nonprofits, meaning they don’t have to pay taxes. This exemption saves Ivy League schools hundreds of millions of dollars each year and has enabled them to grow their fiefs and endowments.
Columbia is New York City’s largest private landowner, with more than 320 properties, valued at nearly $4 billion. The school saves more than $182 million annually by not paying property tax. Harvard avoids some $50 million annually. Property tax exemptions allow colleges to offer low-cost housing to faculty and reduce the cost of building facilities to house new bureaucracies.