Use College Donations (and more) To Shape a Better Future.

Graphic source -- http://www.eclectica-am.com: Harvard's endowment plan accepts rapper 50 cent and his bargain - big bets on high risk. Next year's probable lament: "It's not our fault, everyone was doing it."



First decide if you want to invest in the status quo or if you want to fund educational change. Still undecided? Here are three helps to lend direction.

1) The size of the college you are giving to may influence your school donation. If you want the gift to be appropriate - size is important. A multi-million dollar donation to a new or small college may overwhelm them while a more manageable donation can relieve pressures from recurring expenses and sustain a small school's entrepreneurial spirit. Monthly or annual gifts may be particularly appropriate.

Large annual gifts to a long established college may be dropped into the general fund and disappear. You might get your name on a pillar of a Greek temple, but there may be fifty names on each pillar. A million dollar gift is a major gift to a growing college, a minor achievement to an already well endowed institution.

Opportunities for capital build outs with deca-million dollar donations may be why they are calling you. If you are not the lead giver - your contributions may be marginalized. A smaller gift could disappear into a maw of over-subscription.

Check your college's endowments and make sure they are not chasing yield in poorly understood investments. You do not want your college donation dissipated by investment managers compelled to follow the herd. Extraordinary delusions haunt generally accepted investment advice; brilliance and education are not replacements for discernment.

An excuse heard too often is "it would have continued to produce excellent results if not for unforeseen circumstances." There will always be unforeseen circumstances, or they would be called easily-avoided-errors. Annual gifts are less likely to be destroyed by ill-advised risk avoidance.

2) The philosophy of learning at a college or an endowment university may influence your desire to donate to that particular institution.

This is something to review occasionally. No matter what reasoning was used when the college was founded, educational direction tends to drift away over time. Harvard was started as a school to train preachers. When you contribute to a school you also fund their current social, political, and (anti) religious agendas. Make donation choices that reflect your values.

Too many graduates are receiving degrees that reflect bureaucracy survival rather than adaptive learning. It would be wise to consider if you most value certificates or understanding in your fellow alumni. Whatever is financed will flourish.

"In a time of drastic change it is the learners who inherit the future. The learned usually find themselves equipped to live in a world that no longer exists." - Eric Hoffer

3) The college you attended, or where you plan for your children to attend, may deserve preference in your gifting decision. For many their alumni status, combined with persistent follow up from their college foundation, can be the primary consideration.

Others want more benefits than satisfying what they consider a rah-rah spirit on which to base their gifting decision. However, funding a named chair, department, or building to honor or memorialize someone very special may be just what you wanted.

As in all areas, do not be led by others opinions or sales talk. Take your time, invest your thoughts first, make your own conscious decision of how, when, and where you wish to make your college donations.