Charitable Donations to American Universities Boosted by 3% in Previous Year
Philanthropic Gifts Soar, Breaking Records
In the recent fiscal year 2024, philanthropic contributions to American universities and colleges skyrocketed to a staggering $61.5 billion, as perthe latest annual report from the Council for Advancement and Support of Education's (CASE) Voluntary Support of Education (VSE) survey. This figure represents a 3% inflation-adjusted increase over the previous year, and it's worth noting that the VSE survey is generally recognized as the go-to source for information regarding philanthropic support for nonprofit and public higher education institutions in the States.
The report from CASE suggests that giving had increased for 59.4% of the 675 institutions reporting in both 2023 and 2024, while a mere 40.6% reported a decrease. This ratio, described as "common" in the report, illustrates the ongoing vitality of philanthropy in shaping the future of education.
Sue Cunningham, CASE President and CEO, elaborated in the report, "Philanthropy continues to serve as a catalyst for expanding opportunities for students, propelling research, and fortifying the overall educational experience." Cunningham emphasized the collective faith in education's transformative power, which underpins the steadfast generosity of donors.
Donations Across Sources
An analysis of the sources of these donations reveals both individuals and organizations have contributed significantly to the philanthropic surge in fiscal year 2024. Alumni giving soared by 7.5%, whilst non-alumni individuals increased their contributions by 4.7%. Donations from organizations saw a more substantial increase, rising 14.6%. Donor-advised funds climbed by 12.1%, but corporate giving observed a noticeable decline of 7.3%. Giving from "other organizations" dipped by 5.5%.
Foundations claimed the lion's share of the philanthropic pie (33.2%), followed closely by alumni (21%) and non-alumni individuals (14.5%).
Donations By Activity
The majority of philanthropic support went towards current operations (58%), with 42% allocated for capital purposes. Notably, gifts earmarked for current operations grew by 2.3%, and those directed towards capital purposes experienced an impressive 11.7% rise.
Endowments were the most popular category of capital gifts, although they also included property, buildings, equipment, charitable gift annuities, charitable remainder trusts, and remainder interest in property. Approximately half of all endowment gifts were designated for student financial aid, marking the single largest category in endowment giving. Including gifts tagged for academic divisions and faculty and staff positions bumps this percentage to a staggering 87.2%. Private giving to athletics accounted for only 2.4% of endowment gifts.
Similar to endowment gifts, donors often specify the purposes for which their gifts for current operations may be utilized. In 2024, research constituted the largest category of support for current operations (43.6%), followed by academic divisions (28.1%) and athletics (12.8%).
A Positive Outlook for Higher Education
Despite the media's focus on influential donors withholding contributions over campus protests or contentious issues, overall philanthropic support continued to strengthen higher education in fiscal year 2024, upholding a recent trend. The report attributed this growth to an expanding stock market and a robust overall economy in 2024, suggesting that the level of giving is influenced by both economic factors.
- The growth in philanthropic support for higher education in the United States in fiscal year 2024 is partly attributed to the increase in private giving, particularly from foundations, alumni, and non-alumni individuals, as illustrated in the Council for Advancement and Support of Education's (CASE) Voluntary Support of Education (VSE) survey.
- Interestingly, while the media often focuses on influential donors withholding contributions due to campus protests or contentious issues, the CASE's VSE survey shows that philanthropic giving for higher education continues to maintain a positive percentage, suggesting that overall, donors continue to have faith in education's transformative power.
- The report also warns that although philanthropic support for higher education continues to show a positive trend, it is essential to monitor the percentage of donations from different sources and purposes, such as organizations, capital purposes, and endowments, to ensure the sustainability of private giving in shaping the future of colleges and universities.
