Why do Alumni's pay Universities?

I'm trying to figure out, why do Alumni's give EXTRA money back to their Universities?

I'm not talking about your student payments, but after you Graduate, you get calls from.the school, trying to see if you're interested in giving Alumni payments (free money) to help fund other students education, when most of the Universities (at least the Universities in America) are making record profits.

I just don't understand, why pay? What are they getting out of it? The University is making a record profit and spending it on stupid stuff... and making it harder for volunteers of their community projects to be volunteers ans keep the money they raised for their own project...

I mean, you forced me to pay my way through education, and now you the school, want my money for free? Especially when you are already making record profits?

I can understand why the school ask... whom doesn't like free money?

But I can't figure out why do some people actually pay money to the school? Especially when they're clearly not struggling...

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Northwest · M

most of the Universities (at least the Universities in America) are making record profits.

No. Not when it comes to well established, accredited universities. These are non-profit institutions for a reason. As in to separate them from the "Trump University" type schools, and for-profit coding bootcamps, or so-called business schools.

Most students, in accredited universities, pay, after scholarships and grants, less than the actual cost of their education.

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Northwest · M

@Viper What you're showing is endowments, NOT profit. These endowments pay for research, facilities, equipment, scholarships, etc. For instance, Harvard's operating expenses were about $5.5B last year. The endowment contributed $2.1B toward those expenses.

An endowment is NOT profit.

DrWatson · 70-79, M

@Northwest And without those endowments, tuition would have to increase.

Viper · M

@Northwest Endowments are saved profits... even if we ignore this...

The profits at the major schools were doing pretty well, I was talking about the major schools

But y'all are absolutely correct, the non-major ones are struggling right now.

SunshineGirl · 36-40, F

I donate money to my old college to help them run summer schools and other support to encourage girls to study STEM subjects at university level.

DrWatson · 70-79, M

@SunshineGirl As a math professor in a school that is trying to encourage more women to enter STEM fields, I appreciate what you are doing!

deadgerbil · 26-30

Most likely for the simple reason of being charitable

exexec · 61-69, C

I donate because the money is put to good use. My alma mater provides a detailed financial report each year to all alumni, so we can see where the money goes. It isn't a mega university, although it is a top engineering school. It also has a large number of minority students who would not be able to attend if it were not for donations.

DrWatson · 70-79, M

People donate to scholarship funds, for example, in order to help current and future students with their tuition.

Viper · M

@DrWatson but I would argue that the universe should be doing that, with their record profits.

Not me, an individual who's not making record profits...

DrWatson · 70-79, M

@Viper Then don't donate. You asked why someone would do so, and I gave one reason why someone might.

By the way, I teach at a small college, and enrollments are plummeting due to the sharp drop in the size of the younger population. We are not making record profits by any means. And many small colleges have had to shut down permanently in recent years. It is forecast that many more will in the near future.

Viper · M

@DrWatson And now, in your situation it would make more sense to me, to help a college in that situation.

Yeah, I've been sitting on this question for a number of years, and you're right, enrollment is down NOW... but still the MEGA universities are doing well with billions in the bank.

But I can understand helping a good school that's struggling! And I rather help one of them (even if I didn't go to it) then one that's doing extremely well for themselves that I did go t

MethDozer · M

They're suckered into the college cult where they beleieve universities aren't making bank and the administration living rich.
The amount of money universities bring in is insane.

Some also use donations to write off on their taxes.

Others are led to believe they will always owe their university something.

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