The Internal Revenue Service has found that the vast majority of colleges and universities have endowment funds invested in a wide range of securities.

The agency disclosed the finding in an interim report on responses to a compliance survey that comes on the heels of a Congressional Budget Office study concluding Congress could save billions of dollars by prohibiting tax-exempt colleges and universities from earning arbitrage indirectly through endowments that are invested at higher interest rates than what they are paying on their tax-exempt bonds.

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