A challenging economy and volatile equity markets have had a significant impact on donors to higher education. Contributions to Minnesota's colleges and universities have failed to match the levels they were at 10 years ago and have declined noticeably since 2008. Looking at contribution amounts adjusted for inflation, this picture holds true for both the University of Minnesota and members of the Minnesota Private College Council.

Still, the amount of private support for higher education remains impressive. Looking at data from the last decade for 11 of the Council's members, annual contributions have averaged almost $160 million. (The data source is the Voluntary Support of Education survey, compiled by the Council for Aid to Education.) This strong support comes from alumni, other individuals, corporations and foundations.

Giving to the University of Minnesota has averaged $260 million a year. While alumni from the private colleges outperform the U of M alumni in participation rates as donors, the U of M, as a national research university, is very effective at securing corporate and foundation grants for research and for its medical school.

When the amounts are not adjusted for inflation, the comparison of 2001 to 2010 is relatively flat. When inflation is taken into account, however, contributions dropped 13% at the U of M and 18% at the Council's members. 

These contribution totals include gifts for a broad range of purposes including financial aid scholarships, new program initiatives, building projects, endowment and operating support. In the last two years, most colleges and universities have made special efforts to find additional support for financial aid in order to meet the increased need that the recession produced for many students and families.

Giving patterns match national trends
Nationally giving to colleges and universities plunged by 11.9% in 2009 and only increased by 0.5% in 2010. (That is actually a decline of 0.6%, when adjusted for inflation.) Even though the economy has strengthened and equity markets have improved it remains unclear whether donor confidence has recovered.  According to Ann Kaplan, director of the Voluntary Support of Education survey, "We're still not out of the woods. Charitable contributions to education are recovering very slowly."

This trend matters; the issue is that it adds further challenges to how higher education institutions balance their books now and ensure the infrastructure needed for the future. The cost of providing a college education continues to increase. There are limits on how much tuition can be raised, even with increases in scholarships, and other forms of revenue, from endowment income to government support, have declined in the recession. So charitable contributions will only grow more important in the years ahead.

Yes, the requests for philanthropic support of higher education must compete with a variety of other causes, whether it is a family or a corporation making the decision. But higher education can make a persuasive case, one that speaks to the impact of a high quality college education for individual students — and for the economic health of our region as a whole.

So as the nation's economic confidence starts to lift, consider what more you can do for your own alma mater; whether it is public or private, that institution will welcome increased support. And if you are looking for an efficient way to make a donation to all 17 of the Council's member institutions, consider contacting the Minnesota Private College Fund.