Author Topic: Donating $$ to your alma mater  (Read 22044 times)

mountains_o_mustaches

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Donating $$ to your alma mater
« on: September 11, 2016, 05:21:15 PM »
I recently graduated from college and have been getting calls from my alma mater to donate money to the school.  I am of the mindset that I am not giving money - I already paid outrageous tuition and (even more outrageous mandatory fees) - why on earth would I give them even more money?? 

I told a friend of mine this and she was appalled (evidently she started donating to the school BEFORE she even graduated ??!!).  She was trying to guilt trip me with all these stories about how the money goes toward scholarships and that I'm giving back to the next generation of students and how my experience was better because of alumni who gave yada yada)

I'm posting this here mostly because I thought it'd be an interesting discussion.  From my point of view a university is not a charity.  Maybe I would donate money earmarked for very specific causes (e.g., a scholarship for students to do these stupid unpaid internships that seem to be required to get a decent job at least in my field) once I'm set with my retirement goals, paid off my mortgage, etc. But I would NEVER think of giving a moment sooner and even then I'm doubtful that I'll be so swayed to send money to my university as opposed to donating to other charities where my money would go a lot further and make a much more substantial difference in the lives of other humans. 

What do you all think?  Am I missing something here?

bobechs

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Re: Donating $$ to your alma mater
« Reply #1 on: September 11, 2016, 05:44:57 PM »
I graduated many years ago, during the Seventies. Nothing in my relationship during my undergraduate years indicated that the state university I attended had any charitable interest in my well-being, nor any in anyone else I knew personally.

From nearly Dickensian skin-flintedness before graduation, the operators transitioned overnight from oburate creditors to importunate beggars.

I won't say I was shocked; I had already formed my own opinion of the people I was dealing with. But I was never tempted to "pay back" anything to them after graduation.

The only thing about it that angered me at all (and really only slightly) was that they at times sent mailings soliciting money to beef up the intercollegiate sports programs.  Programs that were already among the wealthiest in the country.  I mean, did they think I had learned nothing in college?

The Happy Philosopher

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Re: Donating $$ to your alma mater
« Reply #2 on: September 11, 2016, 06:00:25 PM »
If you found yourself down on your luck I doubt your alma mater would donate money to help you get back on your feet again. Higher education is a business transaction. You or someone else paid them money to give you an education. They will play on your feeling of loyalty and guilt to extract as much money as they can from you. Give money to causes you believe in and bring you joy. Never give because you feel guilty and cull people from your life that make you feel his way.

Also before you give to a university ask these questions: Will they make efficient good use of the money I am sending them? Could this money do more good somewhere else? I think you may already know the answers.

NoVa

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Re: Donating $$ to your alma mater
« Reply #3 on: September 11, 2016, 06:06:14 PM »
A quick search (and Wikipedia) says there are over 100 colleges and universities they have more than a billion dollars in endowments. I wouldn't be helping them.

jfolsen

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Re: Donating $$ to your alma mater
« Reply #4 on: September 11, 2016, 06:42:49 PM »
A quick search (and Wikipedia) says there are over 100 colleges and universities they have more than a billion dollars in endowments. I wouldn't be helping them.

jfolsen

I concur.

steviesterno

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Re: Donating $$ to your alma mater
« Reply #5 on: September 11, 2016, 06:47:19 PM »
i bought a Toyota. I like the car, but I don't say thanks and mail them some extra money every year...


I never understood schools doing this right away. It's one thing to ask for specific stuff, but another to call a student 150k in loan debt the week he's out and ask for a donation. I do donate to my old state college, as they are a non-profit and the money goes right back to good, local stuff. But not my professional school.

mountains_o_mustaches

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Re: Donating $$ to your alma mater
« Reply #6 on: September 11, 2016, 08:24:51 PM »
My school is a public non-profit, but I still am not considering giving them my money.  I still came out in debt and they've been spending money on "improvements" for the school that mostly mean fancy looking new buildings (to better attract top students!) and replacing the school's Windows-based PCs with Macs.  Most schools don't spend the money well - it mostly seems to go to status symbols (ooo modern new library decor, a shiny new sign at the main entrance to the university) rather than substantial meaningful changes like scholarships, subscriptions to more academic journals, paying profs what they're worth (rather than paying more and more adjuncts to teach), etc.  I also already paid them for the services rendered, why would I pay them more?

COEE

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Re: Donating $$ to your alma mater
« Reply #7 on: September 11, 2016, 08:35:05 PM »
My school asked me for money for a while... I never sent any... and they have slowly stopped asking.  I do still have a email account with them - but that's it.  I paid them what I thought was reasonable for my education.  I don't owe them any more than that.

My Alma mater has spent Millions in improving their football and sports presence.  I don't want my money going to that.  Now if they were spending millions to improve their engineering facilities, I might think again.

Something I've needed to remind myself of from time to time is that my alma mater is a for PROFIT organization.  They continue to raise tuition to pay for their sports teams and new buildings (one of which was a multi-million parking garage!).  They will survive without my money.  My money can go to many more things that are much, much, much more productive.

I will buy a hat or shirt from there from time to time... I do enjoy watching the football games on TV a couple times a year.  It was a good, economical school... I just am not going to send them extra money.  I got what I paid for.

LeRainDrop

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Re: Donating $$ to your alma mater
« Reply #8 on: September 11, 2016, 08:41:36 PM »
Interesting.  I've donated some to my high school, college, and law school after each respective graduation.  I'm thinking I'll probably reduce my contributions to the latter two this year, but the first one was totally worth it.  That high school absolutely does help current students and alumni immensely.

BeautifulDay

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Re: Donating $$ to your alma mater
« Reply #9 on: September 11, 2016, 08:43:53 PM »
I got one of those calls tonight and politely declined to donate.  I have donated once before to my grad school and they said the money would go towards a scholarship.  So I felt good about that.  I don't mind giving scholarship money for someone else to get a better chance at an education.  I didn't donate tonight because I have other financial priorities right now.  Once I'm FIRE I would probably give money for scholarships again.  I would not be in favor of donating for anything else.  The institutions got enough of my money when I paid for school. (I'm still paying for school)


MsPeacock

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Re: Donating $$ to your alma mater
« Reply #10 on: September 11, 2016, 08:45:21 PM »
I have not donated to my alma mater. I don't intend to for the same reasons that pp have mentioned. My undergrad college spends a great deal of money on a football stadium and other b.s. things. If I want to help college students I would rather donate to a scholarship fund directly and know that my money was spent to further someone's education. 

NorCal

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Re: Donating $$ to your alma mater
« Reply #11 on: September 11, 2016, 08:56:14 PM »
I went to three schools:

1. A community college: I got an excellent education at an excellent price.  $12/unit in the 90's.
2. A state school to finish my BA:  I got a horrendous education at a decent price.  I didn't get much out of it, but I didn't pay much either.  I checked that box on my resume.
3. An MBA at a private Jesuit university:  I got an excellent education, but paid through the nose for it (partially subsidized by the GI Bill). 

The private university is the only one that asks.  I won't give them a dime.  I got an excellent education, but it was entirely clear that I paid full freight.  My MBA program actually subsidized other school programs.

I would never give the state school money.  I'd rather see that place go under (not that it would happen).

I would consider donating to the community college if I ever get well past my own financial goals.  I finished two years of college (including books at tuition) for somewhere around $2,500.  The instruction was excellent as well.  Some of what I learned there still sticks with me today.

COEE

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Re: Donating $$ to your alma mater
« Reply #12 on: September 11, 2016, 09:03:50 PM »
Interesting.  I've donated some to my high school

Huh... I've never thought about doing that... I had a teacher at my high school that was a huge influence on my life and I absolutely would not be where I am today without her... she was a shining star.  She later had another high school named after her - only after she lost her fight with kidney failure.  I might just look into sending some money to my high school alma mater to fund a scholarship or something in her name.

Thanks for the suggest - it has honestly never crossed my mind

VladTheImpaler

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Re: Donating $$ to your alma mater
« Reply #13 on: September 11, 2016, 09:06:00 PM »
When I was an undergrad, I worked on campus in a call center for a semester.
We made outbound calls to alumni asking for donations.
I found a new job at the library annex and got out of there as quick as I could.

Gronnie

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Re: Donating $$ to your alma mater
« Reply #14 on: September 11, 2016, 09:15:08 PM »
The problem even with earmarking money for scholarships or some other cause that you find worthy is this: money is fungible. If you earmark to one cause, that just means they can use less money from other sources for that cause.

Choices

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Re: Donating $$ to your alma mater
« Reply #15 on: September 11, 2016, 10:14:43 PM »
I had a wonderful professor who won all sorts of monitary awards, then donated them back to her department to pay for student travel to conferences. She was amazing and I was the beneficiary of some of these funds, so when I got my adult job I contacted her and she let me know how to structure the donation to pay it forward rather than go into the university general fund.

Lagom

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Re: Donating $$ to your alma mater
« Reply #16 on: September 11, 2016, 10:20:43 PM »
There seems to be a lot of misunderstanding of how donations to colleges work in this thread. You absolutely can designate money to go to something specific, like scholarships, or a particular school (say engineering), or even something super specific like a particular student group or research lab (I would actually recommend against highly specific endowment gifts though). In many cases you can make a very meaningful impact by giving to your alma mater, either to shape the student experience, or even to advance causes traditionally associated with independent nonprofits (things like environmentalism, medical research, poverty, healthcare access, etc.). It doesn't by any means have to go to athletics or a "black box." And while I would suppose some budget shifting occurs, they are not twisting their mustaches and moving dollar for dollar money from scholarships to football.

The overall culture of a strong alumni network and community is almost always rooted in a culture of philanthropy. The idea that you will reach outward when in need, and give back when in abundance creates so much opportunity for all involved. The problem is that many schools are far from being at that point, but if you ever hope for your alma mater to get there, giving is a great way to start. Even at the many schools with nothing special academics, bloated executive staff and a sickening sports focus, there is so much potential to create powerful communities that have nothing to do with any of that. Might be worth consideration. Just my two cents. 


Dicey

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Re: Donating $$ to your alma mater
« Reply #17 on: September 11, 2016, 11:09:09 PM »
My siblings are working hard to give me an Inheritance Drama post that I do not want to experience, let alone write about. I am tempering my anger by reallocating my assets in my will. I currently have a number of charities that I support with my labor and my dollars. However, I am exploring how to re-deploy the green soldiers that were once earmarked for my sibs.

I, too, am a product of the Junior College system. I got a great, inexpensive education there, and successfully ventured out in the real world armed with just an A.A. They have never asked for anything. It might be fun to seek creative ways of giving back.

And if my third grade teacher were still alive, I'd get a kick out of writing her a big, fat check. God bless you Mrs. Weed. I hope you're enjoying the rewards richly due you.

marble_faun

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Re: Donating $$ to your alma mater
« Reply #18 on: September 11, 2016, 11:45:21 PM »
Here's my take on college donations, at least for elite/selective schools.  (I also have a less cynical version, but I'll start with this):

The value of a college rests in part on its prestige and reputation.  If you went to Fancy U, that should mean you were exceptional enough to get in, had the wherewithal to survive its rigor and graduate, etc.  The degree is supposed to distinguish you as having a high social status.  Alumni are meant to take pride in this and to try and continue the tradition.

If you give money to your college, you can help ensure that it stays or perhaps becomes prestigious.  If all the other Fancy U's are luring students with new stadiums, rock-star professors, leather barcaloungers in every dorm room, or whatever else, then yours needs to have all of that too.  This maintains your college's desirability for the next generation.  If the college is popular, it will continue to be highly-selective and prestigious.  This protects your tuition-investment.

You can see this happening over time with different colleges.  NYU, for instance, used to be a relatively low-status school for local city kids.  In the 80s some of the wealthy alumni banded together to raise $1 billion plus, NYU started to seem glamorous and cool, and now people all over the world are vying for a spot.  This makes an NYU degree more valuable.

Other colleges enter death spirals and go out of business.  That would de-value your degree and possibly break up the alumni network.  Alumni will work hard to avoid this outcome (see: the story of Sweet Briar College in Virginia).

SnackDog

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Re: Donating $$ to your alma mater
« Reply #19 on: September 12, 2016, 01:55:01 AM »
Giving to charity should be an important part of the life of everyone on this board. There are lots of people less fortunate than those of us on this silly frugal living board bickering about how early to retire. If you don't know who or where those people are, you are not paying attention because they are probably in your community. 

My alma maters are both wonderful schools. One even gave me a lot of scholarship money. Maybe $40k. But they are not anywhere near the top of my list for charitable giving, partly because they are both so damn rich.

Knapptyme

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Re: Donating $$ to your alma mater
« Reply #20 on: September 12, 2016, 04:34:02 AM »
The only school I attended that asks me for money is my MA from a public university. Between me and my wife, we give $20 a year to specified departments. It's a drop in the bucket, but we're doing our part to make the statistics look more favorable about percentage of alumni who donate.

It's a little about perception. It's a little about protecting the investment. It's mostly about being at least one nice call for the poor student stuck in the call center.

Bicycle_B

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Re: Donating $$ to your alma mater
« Reply #21 on: September 12, 2016, 04:48:44 AM »
There seems to be a lot of misunderstanding of how donations to colleges work in this thread. You absolutely can designate money to go to something specific, like scholarships, or a particular school (say engineering), or even something super specific like a particular student group or research lab (I would actually recommend against highly specific endowment gifts though). In many cases you can make a very meaningful impact by giving to your alma mater, either to shape the student experience, or even to advance causes traditionally associated with independent nonprofits (things like environmentalism, medical research, poverty, healthcare access, etc.). It doesn't by any means have to go to athletics or a "black box." And while I would suppose some budget shifting occurs, they are not twisting their mustaches and moving dollar for dollar money from scholarships to football.

The overall culture of a strong alumni network and community is almost always rooted in a culture of philanthropy. The idea that you will reach outward when in need, and give back when in abundance creates so much opportunity for all involved. The problem is that many schools are far from being at that point, but if you ever hope for your alma mater to get there, giving is a great way to start. Even at the many schools with nothing special academics, bloated executive staff and a sickening sports focus, there is so much potential to create powerful communities that have nothing to do with any of that. Might be worth consideration. Just my two cents.

Thank you, Lagom.  Well put.  I strongly agree.

Also, +1 SnackDog.

MMMarbleheader

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Re: Donating $$ to your alma mater
« Reply #22 on: September 12, 2016, 05:14:04 AM »
My college has a major specific alumni association That gives out scholarships and supports the American Society of Civil Engineers student chapter. I donate my time and money because I feel the help the alumni group gave me as an undergrad really helped build my career.

I would never ever give to the university annual fund. Just a drop in a massive bucket there

Scandium

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Re: Donating $$ to your alma mater
« Reply #23 on: September 12, 2016, 05:30:30 AM »
Here's my take on college donations, at least for elite/selective schools.  (I also have a less cynical version, but I'll start with this):

The value of a college rests in part on its prestige and reputation.  If you went to Fancy U, that should mean you were exceptional enough to get in, had the wherewithal to survive its rigor and graduate, etc.  The degree is supposed to distinguish you as having a high social status.  Alumni are meant to take pride in this and to try and continue the tradition.

If you give money to your college, you can help ensure that it stays or perhaps becomes prestigious.  If all the other Fancy U's are luring students with new stadiums, rock-star professors, leather barcaloungers in every dorm room, or whatever else, then yours needs to have all of that too.  This maintains your college's desirability for the next generation.  If the college is popular, it will continue to be highly-selective and prestigious.  This protects your tuition-investment.

You can see this happening over time with different colleges.  NYU, for instance, used to be a relatively low-status school for local city kids.  In the 80s some of the wealthy alumni banded together to raise $1 billion plus, NYU started to seem glamorous and cool, and now people all over the world are vying for a spot.  This makes an NYU degree more valuable.

Other colleges enter death spirals and go out of business.  That would de-value your degree and possibly break up the alumni network.  Alumni will work hard to avoid this outcome (see: the story of Sweet Briar College in Virginia).
Well so what? I got my degree and a job. At this point it doesn't really matter much to my success how prestigious my school is/remain/become. I don't care how good it is for others.

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Villanelle

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Re: Donating $$ to your alma mater
« Reply #24 on: September 12, 2016, 05:39:07 AM »
Most of my career has been working for university-affiliated non-profits, so I've seen how universities spend donor money.  I'd give to support an entity in the university's research foundation if it supported a cause in which I believe.  My university had an organization that funded programs for teachers wanting training in educating struggling readers, as one example.  As a gift, you can put fairly specific rules on how your money can be spent. (Though of course, money being fungible, when you give a gift and say it can't be spent on administrative supplies, for example, they can often use your money for teaching supplies and then spend money that is more general to cover those admin supplies instead.)  But I'd never give to the university's general fund.  Ever. 

projekt

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Re: Donating $$ to your alma mater
« Reply #25 on: September 12, 2016, 06:12:28 AM »
I give to the vet school, but it is only one part of our overall charitable giving program. In all, we make sure that over 80% of what we give is going to charities that are effective and working in areas of the world where it is needed most.

kite

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Re: Donating $$ to your alma mater
« Reply #26 on: September 12, 2016, 06:17:16 AM »
I have two friends who fund scholarships in specific majors at their respective schools. The scholarships are in the names of deceased family members.  One is for $2500 annually towards a major in Labor & Union Organization, the other is full tuition for Freshman & Sophomore year in Fine Arts.  They enjoy selecting recipients and following their progress. 
And I know how they feel.  We sponsored two single moms in our community who needed help.  We paid their tuition directly to the school, helped with transportation, childcare & housing.  Both are now graduates.  They are homeowners and their kids are like honorary grandkids to us.  I did steer them to my Alma Mater,  but giving to my school wasn't the point.  Helping people in my community was the goal, and the school is local.
My spouse and I have been Foster parents and our current charitable focus is helping young adults who are aging out of the Foster care system.  Our total estate will likely go towards this, but we do what we can now to address the immediate need.  I'm not interested in a legacy in our name for after we're gone but want to focus on making someone else's life better today in ways that provide long term benefits. 
« Last Edit: September 12, 2016, 06:25:43 AM by kite »

Dicey

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Re: Donating $$ to your alma mater
« Reply #27 on: September 12, 2016, 11:02:44 AM »
Clapping for Kite! Well said and well done.

Gondolin

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Re: Donating $$ to your alma mater
« Reply #28 on: September 12, 2016, 12:48:18 PM »
Kite - That's aweeeeeesome. Hope to emulate you someday.

Marble_Faun - Your argument is correct in the abstract. However, I would argue that it really only applies to major donors. The NYU case is relatively unique since NY is one of the * few* places that has a bunch of billionaires who could conspire to "purchase" prestige for their school.

For example, my Fancy U pays $100-200M annually for hedge funds to manage their multi billion endowment AND has 20 dedicated staff members in the investment office. The school's 2015 budget was $3.7 Billion.... Only $170M of which came from gifts.

The odds that this juggernaut is going to go under because they don't get a $100 check from me every year seems slim.

LeRainDrop

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Re: Donating $$ to your alma mater
« Reply #29 on: September 12, 2016, 01:03:17 PM »
Marble_Faun - Your argument is correct in the abstract. However, I would argue that it really only applies to major donors. The NYU case is relatively unique since NY is one of the * few* places that has a bunch of billionaires who could conspire to "purchase" prestige for their school.

Actually, the percentage of alumni who donate is a big factor in college/university rankings.  That's why the $5 and $20 donations are still so valuable to the school.

J_Stache

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Re: Donating $$ to your alma mater
« Reply #30 on: September 12, 2016, 01:19:37 PM »
I was on the cycling (club) team in college, so I throw some spare gear or cash to them under the table every now and then.  To donate through the university, I'd have to donate to club sports (of which they are a part, but would not necessarily see my entire donation). 

My fiance works for our Alma Mater and they make her pay for a parking pass.  When they call, she tells them that she'll donate as soon as her loans are paid off and the University lets her park for free.

mountains_o_mustaches

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Re: Donating $$ to your alma mater
« Reply #31 on: September 12, 2016, 01:21:12 PM »
I can see the point of specifically earmarked money and might consider this in the future, but it's a hard sell for me between donating some scholarship money or donating that money to other charities that might make a much bigger impact (e.g., https://www.thelifeyoucansave.org/Where-to-Donate).  I might consider donating for specific research at universities because of that impact factor.

The arguments about prestige and rankings matter much less to me.  The school I went to is not prestigious and is very unlikely to become prestigious.  College rankings don't really matter to me (hence going to a non-prestigious school).  Even if my uni were to become "prestigious", it wouldn't affect my day-to-day.  I see donating for "prestige" as another way of paying for luxury. This is just my point of view - others are free to donate how they see fit and in line with their own values.  It just never really made sense to me, even with the knowledge that I could donate to very specific causes.

Gondolin

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Re: Donating $$ to your alma mater
« Reply #32 on: September 12, 2016, 01:29:26 PM »
Quote
big factor in college/university rankings

Can you cite a source on this?

US News and World report weights "alumni giving" at 5%. That's the smallest weight in their methodology so I wouldn't call it a "big factor". It has some impact but I don't know that +/- 1% is making or breaking anyone's ranking.


slugline

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Re: Donating $$ to your alma mater
« Reply #33 on: September 12, 2016, 01:36:52 PM »
I'm sure the perspective changes depending on how you think the money will end up being used.  I was the beneficiary of a lot of scholarship money. So when I give i view it as a form of "paying it forward." I want to believe I'm helping a future student get a similar shot at an education.

Naturally, I can also see why someone would not want to give, especially a recent graduate mired in other financial responsibilities. When they call, there should be nothing wrong with saying no.

GuitarStv

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Re: Donating $$ to your alma mater
« Reply #34 on: September 12, 2016, 01:43:32 PM »
I enjoyed my time at university and learned quite a great deal despite the actions of the faculty and administration . . . not because of them.

Proud Foot

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Re: Donating $$ to your alma mater
« Reply #35 on: September 12, 2016, 01:43:55 PM »
I have never donated to my alma mater yet.  Whenever they have called I politely tell them that I am still working to pay off my student loans but might consider it once they are paid off.  So far I have never had an issue as the callers typically are student workers and will most likely have student loans upon their graduation (private univer$ity).

mm1970

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Re: Donating $$ to your alma mater
« Reply #36 on: September 12, 2016, 01:45:23 PM »
I donated once.  I went to a good school, and enjoyed my time there.  But.  You know, they have a lot of money. 

They helped me out and got me financial aid.  I borrowed to go to college, and eventually paid off the loans.  Not sure why I'd donate before then.  And now I have two kids.  I'm saving for possibly 2 college educations.

I guess what I'm saying is...CMU can have my money if one of my kids chooses to go there.

stoaX

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Re: Donating $$ to your alma mater
« Reply #37 on: September 12, 2016, 01:57:28 PM »
I went to three schools:

1. A community college: I got an excellent education at an excellent price.  $12/unit in the 90's.
2. A state school to finish my BA:  I got a horrendous education at a decent price.  I didn't get much out of it, but I didn't pay much either.  I checked that box on my resume.
3. An MBA at a private Jesuit university:  I got an excellent education, but paid through the nose for it (partially subsidized by the GI Bill). 

The private university is the only one that asks.  I won't give them a dime.  I got an excellent education, but it was entirely clear that I paid full freight.  My MBA program actually subsidized other school programs.

I would never give the state school money.  I'd rather see that place go under (not that it would happen).

I would consider donating to the community college if I ever get well past my own financial goals.  I finished two years of college (including books at tuition) for somewhere around $2,500.  The instruction was excellent as well.  Some of what I learned there still sticks with me today.

I had the same experience with the 5 or so classes I took at a community college -I learned a lot even though it didn't have the look and feel (or tuition cost) of an elite university. 

And your "horrendous education at a decent price" comment had me laughing. 

stoaX

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Re: Donating $$ to your alma mater
« Reply #38 on: September 12, 2016, 01:59:27 PM »
Also, for the record, no I don't donate to my alma-mater.  I donated enough during my years as a student via the tuition.

Dancing Fool

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Re: Donating $$ to your alma mater
« Reply #39 on: September 12, 2016, 02:16:35 PM »
I had the good fortune to receive very generous need- and merit-based aid to cover the bulk of my undergrad expenses at a private Catholic university (cheaper by about $50k over 4 years than my home state school would have been). I have no problem donating 1-2% of my after-tax income to need-based aid now that I can afford to do so. Also donate to local charities - a food bank and the local Catholic charities cluster - in similar amounts.

I wouldn't feel as great donating for just building new buildings on campus (besides maybe additional dormitories) - campus is beautiful but to my knowledge there's not a pressing need to expand further.

LeRainDrop

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Re: Donating $$ to your alma mater
« Reply #40 on: September 12, 2016, 02:17:20 PM »
Quote
big factor in college/university rankings

Can you cite a source on this?

US News and World report weights "alumni giving" at 5%. That's the smallest weight in their methodology so I wouldn't call it a "big factor". It has some impact but I don't know that +/- 1% is making or breaking anyone's ranking.

Okay, I should not have said "big."  You had said that Marble_Faun's argument "really only applies to major donors."  I was pointing out that the percentage is one of the factors considered, not just the amount of each donation, as a matter of fact, not to argue for or against donations.  Just, it is what it is :-)
« Last Edit: September 12, 2016, 02:20:43 PM by LeRainDrop »

Gondolin

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Re: Donating $$ to your alma mater
« Reply #41 on: September 12, 2016, 02:22:39 PM »
Ah, ok - I didn't know about this criteria at all until I looked it up an hour ago so I was just curious if there was another methodology / ranking you were looking at. :)

marble_faun

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Re: Donating $$ to your alma mater
« Reply #42 on: September 12, 2016, 09:51:28 PM »
Well so what? I got my degree and a job. At this point it doesn't really matter much to my success how prestigious my school is/remain/become. I don't care how good it is for others.

It might not matter to you, but it would mater if you were a person that cared about prestigious status symbols and/or who benefitted from being part of an elite alumni network.


For the record, I do donate small sums of money to my alma mater.  I loved the place, learned a lot, and have derived a huge benefit throughout my adult life from having gone there.  They're trying to create more scholarships (in the interest of reducing students' loan burden), and though my measly $10 or $20 annual contribution is going into a huge pot, I like to support that effort in a small way.  If I were much wealthier I would definitely consider endowing scholarships.  (This is the less cynical version!)

marble_faun

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Re: Donating $$ to your alma mater
« Reply #43 on: September 12, 2016, 10:02:02 PM »
Marble_Faun - Your argument is correct in the abstract. However, I would argue that it really only applies to major donors. The NYU case is relatively unique since NY is one of the * few* places that has a bunch of billionaires who could conspire to "purchase" prestige for their school.

For example, my Fancy U pays $100-200M annually for hedge funds to manage their multi billion endowment AND has 20 dedicated staff members in the investment office. The school's 2015 budget was $3.7 Billion.... Only $170M of which came from gifts.

The odds that this juggernaut is going to go under because they don't get a $100 check from me every year seems slim.

Hmm.  But I imagine the endowment is so huge in part because of giving by alumni, including lots of small gifts that all added up over the generations?    If one person withdrew support, it wouldn't matter.  But if everyone had declined to give, the Fancy U wouldn't be so big, powerful, and bursting with prestige-value now.  And it could get even bigger in the future.

nobodyspecial

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Re: Donating $$ to your alma mater
« Reply #44 on: September 12, 2016, 10:09:05 PM »
I don't get begging letters from the place I did my PhD but my wife was an undergrad there and does get the magazine and letters.
I met somebody who works in the Alumni office who said they don't bother begging from PhDs because they are unlikely to have any money.

I don't think they advertise this fact in the grad school recruitment.


Villanelle

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Re: Donating $$ to your alma mater
« Reply #45 on: September 12, 2016, 10:46:43 PM »
I donated enough during my years as a student via the tuition.
I agree with that wholeheartedly.  I consider it a business transaction, and that transaction is complete. 

Getting them to leave me alone was difficult.  They don't take "no" for an answer, and even after moving they somehow tracked me down.  I finally got myself added to the "inactive alumni" list, which caused the mailings and calls to stop for long enough to move again and for the address change record to expire.

I would *love* to know how to do that.  I graduated more than 15 years ago.  I lived at my parent's home when I graduated, so that was the last address the school had on file.  My poor sister bought my parents home, and she still gets mail for me from my university, begging for scraps.  Since I occasionally have stuff delivered to her address, my name is on file with the post office, so they continue to deliver the university mail, too.  I can't seem to get them to stop.  The money they've spent on glossy magazines and mailers is ridiculous.  You'd think that some sort of cost benefit analysis would tell them that if someone hasn't given in 15 years, another mailer is unlikely to tip the scales.  Or at least cut that type of person down to  once a year begging, or something.  They should hire some grad student to do an analysis of the money spent on people who have been long term non-givers, and the ROI on that spending.  Hmmm, maybe I could donate and stipulate that it go to that...

CanuckExpat

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Re: Donating $$ to your alma mater
« Reply #46 on: September 13, 2016, 01:42:29 AM »
During my undergraduate degree, I was the recipient of academic and needs based scholarships funded from alumni donations. The amounts seem small now, but at the time I thought it was quite generous, and it played a big part in me both not worrying about finances at the time, enjoying college, and graduating with a maintainable student loan balance.

I'd have no problem donating to my alma mater, and would probably specify that it goes scholarships/bursaries. I would also consider creating named scholarships in memorium of deceased loved ones. I did receive at least one scholarship of such, and I do remember a nice letter being enclosed about the person it was named after and why they decided to create a scholarship in their name (though I forget the details).

Other then small amounts, I haven't donated much (yet?) to my alma mater because there always seemed other causes that were more direct and needy. However, the other side of the coin is, I am sure the alumni who donated before me could have donated somewhere with more benefit, but if they had, I wouldn't have received the support that I did.

I think in the future I will look into the tax advantaged planned/estate giving that universities seem particularly good at encouraging.

Greystache

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Re: Donating $$ to your alma mater
« Reply #47 on: September 13, 2016, 07:17:10 AM »
I went to a public university in Iowa in the late 70s and early 80s. I received Pell grants and scholarships that where funded mostly by state and federal tax payers.  The tax payers of Iowa heavily subsidized my tuition costs.  After I got my degree, I took a high paying job out of state.  The tax payers of Iowa never got a return on their investment in my education.  I always felt a little guilty about taking their money and running.  So yes, I have made small contributions over the last 30 years or so.

Lagom

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Re: Donating $$ to your alma mater
« Reply #48 on: September 13, 2016, 07:50:17 AM »
I think in the future I will look into the tax advantaged planned/estate giving that universities seem particularly good at encouraging.

Planned giving is a great way to give to a university and often lets you have a much larger impact/leave a legacy (e.g. an endowed scholarship) than you would feel comfortable doing when preservation of capital is a concern.

And for those spouting the "I paid my tuition so why should I respond to them begging for handouts," you are missing the point entirely. People often have a very warped view of what giving to a university entails, but it can be just as impactful and rewarding as giving to a nonprofit. Donating to a university is not about repaying some sort of debt you owe them, it's about building a powerful engine for social and/or scientific good, helping the next generation have equal or better educational opportunities than you did, and creating a network upon which thousands of individuals can help find connections that will further their careers (or even FIRE aspirations!). If you prefer to prioritize a cause your university doesn't champion, that's totally cool, of course, but money donated to higher education is very far from money wasted, as long as you inform yourself of the options and are thoughtful in your giving, just as with any other philanthropic endeavor.

mskyle

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Re: Donating $$ to your alma mater
« Reply #49 on: September 13, 2016, 10:37:09 AM »
I don't donate to my college; it was very good to me and it's actually a very well-run, cost-efficient place overall, frequently ending up one those "best value in higher ed" lists. But I think that donations to prestigious colleges and universities ultimately end up consolidating wealth and privilege. I'd rather give my money to organizations that help people who are significantly worse off than me and my college classmates.