Donating to your alma mater

<p>Interesting article in today's NY Times by Ben Stein about contributing to already heavily endowed institutions such as Yale, his alma mater: <a href="http://www.nytimes.com/2005/10/23/business/yourmoney/23every.html%5B/url%5D"&gt;http://www.nytimes.com/2005/10/23/business/yourmoney/23every.html&lt;/a&gt;&lt;/p>

<p>His conclusion:
I love Yale, and I am deeply grateful to Yale. It is a star in my sky every day and night. But at this point, is it an investment bank or a school? I am really not sure, and this troubles me. I would love to be shown that I am wrong, but I am not certain that I am.</p>

<p>Keep in mind Yale is not his TRUE Alma Mater - he attended their law school and not the undergraduate college. He attended Columbia and graduated with a degree in Economics.</p>

<p>Thanks for posting the article. I enjoyed reading it! Especially thought provoking were Ben Stein's remarks that his contributions might do more "good" in the sense of immediate impact elsewhere at other non-profit organizations than Yale. (And if your bachelor's, master's or Phd is stamped "Podunk U", you are a still a "true alum" of Podunk U.)</p>

<p>i do not support my alma mater because it was a horrible school, a means to an end and they offered not much support, (although a few of the nursing instructors were phenomenal). I would prefer to give a few bucks to the vietnam vet who lives down the street behind a food store, or to my son's instructor who doesn't have enough supplies for the students. there are some schools way too overfunded, and the others suffer.</p>

<p>I think it makes a lot of sense. If I were an alumni of Yale (or Swarthmore for that matter), I am not sure I would donate that much to either institution.</p>

<p>I think another reason why alums donate is to pave the way for their kids to be accepted by the school. I was speaking to a non-HYP Ivy alum who does fundraising for his class (similar to Stein). He said he had to hear story after story about how their great kids didn't get accepted to the school as legacies. I replied: "I guess you didn't get too much money from them" ;)</p>

<p>I don't donate much to my Ivy - they are filthy rich. Some in my family donate to Catholic U of America, but the school is in an unusual position: unlike with all the other Catholic colleges and universities, all the Catholic churches in the US, through their dioceses, donate to it (via yearly collection). Hence the alumni giving rate is low (which impacts its USNWR ranking).</p>

<p>audiophile- When it comes to donations, I think a lot of us get into colleges as legacies in spite of our parents.</p>

<p>I donate to all my schools--undergrad and law. The education that I got in both places provided me a good living (when I worked) and changed my life for the better in many ways (met H at undergrad--very good financial--and personal--decision on my part). I don't donate great gobs of money, but I do it regularly. Just a little way to say "Thanks!".</p>

<p>I make a very minimal contribution to my alma mater yearly (I used to donate only in years they had a losing football team, but I've softened.) They don't need the money, and I am beginning to think it strange that I should be underwriting the millionaires' kids to the tune of $22k+ a year. I make a larger contribution to Earlham each year (still small), as I like their mission. But I am helping to educate 240 kids we have in hostels in south India, and I can provide food, clothing, shelter, medical care, and education for each one for about $115 a year, and I am sure, from personal experience, that the $115 is worth a heck of a lot more to them than the $45,000 it would take to fully fund a student at my alma mater.</p>

<p>mini, can you provide a link about the program in India?</p>

<p>You can find out some basics at <a href="http://www.lafti.net%5B/url%5D"&gt;www.lafti.net&lt;/a>, or read my daughter's and my blog at shantinik.blogspot.com Most of the specific support for the kids comes from an organization based in Italy - Gruppo 1% - out of Modena, where my d. is planning to do an internship next summer.</p>

<p>For more details, pm me.</p>

<p>In the past I made regular donations to my alma mater OSU, but stopped in protest of their decision to discipline graduates who silently and without signs, protested Pres Bush during commencement. I do however donate to the CofE. I know, its probably more symbolic but I got such a wonderful education there and enjoyed my years in Columbus so much, I cant help myself.</p>

<p>I donate a lesser amount to Cornell for the same reasons cited by B. Stein. But I feel that I need to offer my support in some measure for the wonderful education I received there too.</p>

<p>And yes, DW donates to her alma mater, Rensselaer.</p>

<p>In addition both OSU and RPI are mentioned in our wills, a %age of the estate value I recall.</p>

<p>My wife and I figured it out a few years ago. We would stretch to give $2k to our school, and then a more financially successful alum would donate $100mm and have a building named after him and we would feel like, "Why did we bother?" We still give (less) to the university, but concentrate our giving on local charities where as Stein notes, a similar sized donation makes a real difference. </p>

<p>I was very surprised at Stein's claim that the outsized returns achieved at Yale were not a result of great fund managing, but rather produced by economies of scale (opportunities available to only the largest investors) and their tax exempt status. I have read several articles about the fund managers at Harvard and their $20mm++ each compensation, and I have never read anything that suggested they weren't brilliant fund managers who earned every penny of their outsized compensation. And the only fund manager who did better than Harvard was the guy who managed Yale's endowment!</p>

<p>I give yearly to both of my schools (which are both state institutions). I guess I don't really see it as an investment as much as giving back to the place where I had four of the best years of my life and grew as a person (undergrad.) and where I learned how to be a professional and found mentors (grad.). It's more of a yearly thank you note for me. I honestly don't care where they use my money or if it influences anyone (although I never give enough where anyone would care).</p>

<p>My parents donate yearly to Purdue (my Dad's alma mater), but they donate to the band department. According to Mom, Purdue does not have a school of music and none of the band members are Music majors. This is their way of supporting a bunch of kids doing something simply because they love it.</p>

<p>We do not support our alma maters because we are too busy supporting the soccer glove people, the dance shoe people, the energy bar people and the "Mom, I left something at home. Can you mail it to me?" people. Maybe when we're done that that</p>

<p>We give regularly to our respective alma maters (undergraduate instittutions). If somebody with a whole lot of money also gives to the colleges, that's great! Sometimes in fact when I give "extra" it's in response to a challenge gift by a wealthier alumnus. I'm perfectly happy doubling the efficacy of my contribution in such cases. I think my alma mater is very prudent with its money and by and large manages the endowment well, and consistent with my own values.</p>

<p>(As for Stein, he's just an annoying, self-absorbed cheapskate.)</p>

<p>I donate to Penn... I think if I went to HYP maybe not, but Penn's endownment is miniscule in comparison and they seriously need more $$ to give students better financial aid.</p>

<p>This is interesting, in that it makes me think about why I don't give to my alma maters. I don't give to my grad a-m, UC Berkeley, because they are supported to a great degree by the feds (in various disguises).</p>

<p>Like originaloog, I have a beef against my undergrad a-m: they went coed about 10 years after I graduated. I had sent $ and done alumni recruiting every year before, even when I was in grad school (ok, $10, but what can you expect?). They "polled" the alumni, and the grads from the 20's-30-40-50's were all in favor, while the 60's-70's grads were against. Guess who had the ability to give more, and therefore did? It was presented as a fait accompli. They could have been a first rate, national women's college, but instead they're just another New England coed LAC. Not bad, but what might have been... oh well.</p>

<p>I donate to my alma mater, but I give very restricted gifts - I am not generous enough to underwrite the tuition discounting policies for millionaires sons. I am however very very pleased to specify my gift must be used to fund a scholarship program for first generation college women, or the lgbt support center, and my favorite, the women's rugby team equipment needs. Interestingly, there have been very subtle hints dropped by development officers over the years that suggest that less restrictive gifts might help my children obtain a seat in their respective freshmen classes, but as I always make sure they know, if my kids can't get there on their own, they don't deserve a seat at the table. </p>

<p>I am always tempted to see how outrageous my offer has to be before they turn me down. Underwrite a peacock farm on campus! Endow a chair in winemaking! Pay for a year of EST for the freshman class! What would make them say 'no'?</p>