The Hidden Mysteries of NYU's IRS Returns ? NYU Local

Ever wondering where your tuition payments are going? Well the solution is (kind of) here! Check out the?NYU IRS returns, readily available on this beautiful Internet of ours. Being a non-profit organization, the University receives tax exemptions but must also disclose these documents. But beware: the files might create more questions than answers.

Specifically, what the hell is the New York University Real Estate Corporation? Not to mention, how did the corporation?s net assets jump from $483,595 to $25,193,870 in just seven years?

Well turns out that the history of the corporation is not one of great scandal, laced with sex, drugs and real estate. Rather, it?s the story of how NYU came to own the properties just above Washington Square Park.

In 1801, the will of Robert Richard Randall denoted that his Manhattan property, 24 acres of rural land north and east of today?s Washington Square, would become a hospital and home for aged sailors. The estate would be called, ?Sailor?s Snug Harbor.?

But the children of Randall?s half brother challenged the will and, by the time the matter, was settled the area around the farmland transformed into a city. The trustees of Snug Harbor decided to subdivide the land, build houses on Washington Square North, and construct stables along the Washington Mews.

After these properties were leased, Snug Harbor had enough money to buy a large plot of land in Staten Island. Come the 1960s, Snug Harbor looked to sell the land to modern developers; however, the City designated portions of the estate as historical landmarks and eventually purchased the entire property, which now serves as a recreational center and park.

So, how did NYU factor into this? Well, Snug Harbor leased the Washington Mews and adjacent area of 8^th Street to NYU in the middle of the 20^th century. The lease was to last about 200 years. But come the 1980s, Snug Harbor decided to sell the property to a different company, with the stipulation that NYU?s lease must remain intact.

But this company started falling into financial distress. NYU, under the NYU Real Estate Corporation, managed to officially purchase the property. The University decided to create this separate purchasing entity for two reasons: to protect the school from being wrapped up in the other company?s possible bankruptcy and, to guarantee the university?s non-profit tax exemptions would apply to the property, bought from a for-profit company.

The 2003 IRS return provides explanation for the corporation?s existence and tax exemption:

?New York University Real Estate Corporation was organized and is operated exclusively for the charitable purpose of acquiring real property and holding title to and collecting income from the such property and remitting the entire income of such property (less expenses) to New York University a 501(c)(3) corporation). The Income will be used to promote, encourage and sponsor study, research and other educational activities in the area of science and the practice of medicine.?

From 2003 to 2005 (the earliest documents available on the Internet), the NYU Real Estate Corporation appeared a reasonably sized subdivision of the university. This table sums up its profits, expenditures and assets during this time.

Year	Total revenue	Total Expenses	End of Year Net Assets
2003	$242,760	-$1,900	$483,595
2004	$244,666	-$200	$728,061
2005	$242,760	$0	$970,821

The expenditures represent the amount of money given to the University in support of science and medicine. The corporation gave $1900 in 2003; $200 in 2004; $0 in 2005. Also, in 2005,?John Sexton?s name appeared on the?corporation?s?IRS return for the first time.

But in 2006, all assets drained from the corporation to support the university.

Year	Total revenue	Total Expenses	End of Year Net Assets
2006	$0	-$970,821	$0
2007	$242,760	-$242,760	$0

During the next year, the net assets skyrocketed (to say the least). For the first time, the corporation listed building assets at $27,191,728, with $8,129,008 accumulated depreciation, a net of $19,062,720. In 2007, the corporation?s revenue, which came from rental income, equaled the exact cost of the program?s services for the year. ?All $242,760 fed into university services.

This massive jump in property assets came from NYU correcting a former mistake. The University previously reported the land?s value in the university tax forms, not those of the corporation.

Around this time, the University also decided the land no longer needed to be held in a separate entity. Over time, the corporation will be dissolved, with all assets being transferred to the university.

The beginnings of this process are noticeable in recent IRS forms.

Year	Total revenue	Total Expenses	New Net Building Assets	End of Year Net Assets
2008	$118,174	-$118,174	$19,062,720	$19,062,720
2009	$121,704	-$121,704	$10,736,565	$29,799,285

?

Year	Total revenue	Total Expenses	Prior Period Adjustments	End of Year Net Assets
2010	$62,306	-$1,246,580	-3,421,141	$25,193,870

Drawing full conclusions on the NYU?s assets, profits and?expenditures?from IRS returns is difficult, but these public documents offer anyone a way to keep tabs on the university. Rather interesting information, like the salaries of top professors and administrators, can be found with just a little digging.

[Image via Garry L?/ Shutterstock.com]

?

Source: http://nyulocal.com/city/2013/03/07/the-hidden-mysteries-of-nyus-irs-returns/

north korea missile don t trust the b in apartment 23 world financial center shabazz muhammad angela corey zimmerman charged bonobos