Criticism Applied To Pomona Plan
Administration officials saw little chance last night that Harvard would make use of the "Pomona Plan," a scheme offering a tax-exempt life income plan to persons giving donation to a university.
Under the terms of the plan, an upper-bracket taxpayer can give a college securities, which are then re-invested in tax-exempt municipal bonds. The donor collects income from these bonds during his lifetime, with the principal going to the college on his death.
Paul C. Cabot '21, Treasurer of the University, described the plan as "a pretty good bargain" for the donor, but pointed out that it is so "loaded with restrictions" as to be of little use to the college.
On a more optimistic note, James R. Reynolds '23, Director of the Program For Harvard College, stated that the Program would be "perfectly willing" to accept donations of this nature, although the University "has never solicited the annuity type of gift in the past."