In the past, major college donors used to expect certain perks like having their name on a building or receiving special favors from the admissions office. They would often donate money towards the end of their lives as a way to cap off their successful careers. If they wanted to influence school policy, they would typically work behind the scenes. However, recent events at the University of Pennsylvania and Harvard show that there is a new playbook for how wealthy Americans exert their influence in higher education.
Now, there is a new class of donors who are typically in the prime of their careers, having made fortunes in finance or technology. These donors are more vocal about their political beliefs and are willing to use social media to effect change. They employ pressure campaigns similar to Wall Street investment strategies, threatening to withdraw their donations from schools that don’t align with their interests.
In the past, influential donors may have threatened to withhold donations over issues like a losing sports team or a controversial professor. However, today’s big donors are increasingly expecting a broader role in university life. According to academics, former college presidents, and philanthropy experts, they want to have a say in various aspects of the university, beyond just financial contributions.
Private donations to U.S. colleges and universities have significantly increased over the years, totaling $59.5 billion last year. The majority of these donations, about 80 percent, came from just 1 percent of the donors. This demonstrates the growing influence of a small group of wealthy individuals in shaping the direction of higher education.
What sets this new trend apart is the public nature of the pushback from these donors. Benjamin Soskis, a senior research associate at the Urban Institute’s Center on Nonprofits and Philanthropy, notes that the donor class is now using social media campaigns and activism to a degree that hasn’t been seen before.
The recent turmoil at the University of Pennsylvania and Harvard exemplifies this shift. Marc Rowan, CEO of Apollo Global Management and chair of the advisory board at Wharton, publicly called for fellow alumni to donate only $1 unless the university’s president was ousted. While the president eventually resigned, Rowan continued to pressure the school to change its culture and governance. Similar conflicts have emerged at other institutions as well.
These tensions between big donors and universities have been brewing for some time. Many older alumni, who tend to be major donors, often hold different political views than the faculty and students at elite schools. With universities becoming more politically progressive, there is a growing disconnect between these donors and the institutions they support.
It is important to note that while large gifts from major donors can have positive impacts on universities, there is a concern about the appropriate level of influence these donors should have. College presidents find themselves in a challenging position, constantly having to balance fundraising efforts, public scrutiny, and pressure from donors to address certain issues.
Overall, the landscape of higher education philanthropy is evolving, and the involvement of big donors is becoming more complex. There is a need for universities to navigate this new terrain carefully, ensuring that academic decisions remain within the purview of faculty and maintaining the integrity and autonomy of higher education institutions.
Major college donors are increasingly exerting their influence in higher education through pressure campaigns and public activism, according to a New York Times report. Traditionally, donors expected their name on a building or a favor with the admissions office in return for their contributions, but a new class of donors, often from finance or tech backgrounds, are more outspoken about politics and willing to wage war on social media to effect change. They are engaging with expectations of a wider role in university life and are willing to threaten to withdraw their donations from schools that do not align with their views. Last year, private donations to US colleges and universities totaled $59.5bn, up from $14.8bn in 1980-81, with over 80% of donations coming from just 1% of donors.
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