The wealthy continuing to give to wealthy universities and colleges

Gregg Easterbrook, ESPN’s Tuesday Morning Quarterback, continues to highlight a pattern: wealthy donors giving to already wealthy universities and colleges:

Don’t Give to Harvard! A running TMQ cause is that rich people give money to schools such as Harvard, Yale and Stanford, places already possessing gargantuan endowments, rather than to schools where money is needed. The rich underwrite elite schools for ego reasons — at cocktail parties they can say, “I just donated $10 million to Harvard, now a shower stall will be named after me.” At colleges and universities that serve average people, donations can change lives. If you’ve got money, donate to noble Berea College, which accepts only poor students and charges no tuition, or to gallant Bethune-Cookman, a historically black school that mainly serves the underprivileged. Alumnus Charles Johnson just gave $250 million to Yale — which is already sitting on a $19 billion endowment. At a place like Berea College, $250 million would have been a transformative event in the lives of the deserving. At Yale, it’s a rounding error in the lives of the privileged.

Reader Jon Miller of Beaumont, Texas, notes that despite having a world’s-best endowment of $32 billion — nearly double the GDP of Honduras — Harvard just kicked off a capital campaign, asking for another $6.5 billion. Rich people, show a little class: Don’t give to Harvard. Or Yale, Princeton or Stanford. Make your donation count.

This gets back to an old question: do elite universities perpetuate social inequalities? If giving patterns changed as Easterbrook suggests, perhaps there might be a shift…

Burr Ridge seeking donations from public to meet city’s needs

In an era of declining revenue, a few communities are trying a new tactic: ask residents to donate money for needed city purchases.

The leaders of west suburban Burr Ridge have a list of dozens of items they want for the community, including a new patrol vehicle, a portable Breathalyzer and even a cordless saw.

But because they didn’t make it into the budget, they have put them on a wish list and are asking residents for help…

Stricker said village officials came up with the idea last year after learning that west suburban Riverside has a similar program. He said the village is still establishing a tax-exempt 501(c)(3) program, but added that residents have already given funds.

In 2011, Burr Ridge resident Alan Rose, the CEO of Rose Paving Co. in Bridgeview, donated $5,800 to the Police Department for new Taser devices, according to village documents. Resident Joyce Walsh also donated $5,000 to the Police Department in 2011 for its efforts in protecting the village.

As the article notes, Burr Ridge is pretty wealthy. The village of just over 10,500 residents, the median value of owner-occupied housing units is over $706,000, the homeownership rate is just over 95%, and the household median income is over $143,000, and 2.4% of the residents live in poverty. Perhaps in this sort of setting a donation program could work.

But, I can’t picture this as a viable long-term strategy for most communities. Could a local government wait for benevolent citizens? Could residents or businesses make donations and expect something in return like policies or decisions that benefit them? Public-private partnerships and cooperation in places like Chicago are one thing but relying on the public for donated money seems bound to lead to more trouble.

I wonder if this also could raise significant questions about what local communities really do need to purchase: if an item doesn’t make it into the budget, is it really necessary in the first place? Take the Burr Ridge items mentioned above: how worse off will the community be if the government doesn’t have a cordless saw or portable Breathalyzer?