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.

DrWatson · 70-79, M

@Northwest I agree. I think some people confuse endowments with profits.

Viper · M

@Northwest I'm certainly not talking about all schools... but I believe some schools like Penn State claim to be both, non-profit at times when it's beneficial and other times they seem to claim profit.

But you're right, I'm not talking about all schools, but the a lot of the major ones are doing extremely well for themselves.

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.