Amy L. Wax is the Robert Mundheim Professor of Law at the University of Pennsylvania Law School.
These schools serve only a fraction of Americans, but they raise $44B a year through endowments and guzzle mightily from the federal trough.
https://www.theamericanconservative.com/articles/why-donors-must-abandon-their-ivy-league-alma-maters/?utm_source=ntnlreview&utm_medium=referral&utm_campaign=amconswap
Academia ought to be in crisis right now, as Americans increasingly doubt the value of a college education.
Pollsters at Gallup found that the percentage of persons regarding a college degree as “very important” has dropped from 71 percent in 2013 to 50 percent today. The National Association of Scholars issued a recent, damning report that presents universities as dominated by a progressive social justice agenda which distorts teaching and research and presents a one-sided picture of our national problems.
Critics have also faulted the academy for a dramatic increase in elaborate bureaucracies, expensive new buildings, and unproven programs. These developments have driven up costs, which in turn has burdened many students with heavy loans that contribute to economic distress and inequality. Yet universities continue to command generous public and private support. State and federal governments spend hundreds of billions of dollars a year on university programs, infrastructure, and subsidized student loans and grants. This money is not evenly distributed. In 2016, out of over 3,000 universities offering four-year degrees and about half as many two-year colleges nationwide, 20 institutions accounted for over 30 percent of federal spending, with 100 universities garnering 80 percent of the total. Various proposals have been floated to reduce the degree of public support for colleges and universities and thereby force higher education to be more accountable, responsive, and thrifty. These austerity arguments have so far had little effect.
Money from non-governmental sources is also a vital revenue stream. Selective colleges and universities (defined as those that turn away most of their applicants) are especially dependent on generous contributions from alumni and big donors to fund elaborate infrastructure, extensive programs, and lavish amenities. These features are in turn used to attract top student and faculty talent to their ranks. Universities, and especially elite ones, regularly receive large gifts and generous grants from alumni, foundations, and wealthy individuals.
Such support has increased steadily in recent years. In the fiscal year ending in June 2017, four-year colleges and universities raised $43.6 billion from personal, individual, and voluntary gifts, marking a 6.3 percent increase from the year before. Highly ranked and already well-endowed institutions take in the largest sums, with schools like California Institute of Technology, Columbia University, and Harvard University each receiving hundreds of millions annually. Wealthy individuals give the most. The top 10 percent of donors account for over 90 percent of the dollars raised, with the size of the average gift growing steadily since the 1980s.
