The effect of the Tax Reform Act of 1986 on college and university revenues and expenditures is reviewed. Institutional revenues are derived primarily from five sources: tuition, charitable contributions, debt financing, endowment income, and governmental appropriations. The effect of the new law on family and student income, savings, student loans, and financial aid are briefly examined. The impact of the new law on the cost of charitable contributions at both the individual and corporate levels is addressed, along with implications for college fundraising strategies. Also considered is the effect of the new law on the private use of capital assets financed with tax-exempt debt. The impact of the new rules on institutional expenditures is addressed, including retirement and other employee benefits and the costs of compliance. The purpose of the Alternative Minimum Tax and calculation of this tax are covered, and the old and new tax law are compared in terms of individual and business income taxes, itemized deductions, long-term capital gains, trusts and estates, credits, tax-exempt debt, and retirement savings. (SW)