2% of donors supply 89% of college giving — something is going to give

In 1638, John Harvard, a Puritan minister, donated his estate and books to establish America's oldest university, Harvard. This tradition of philanthropy continues, with higher education funding now covering about 10% of college budgets. However, a glaring disparity exists: 89% of college donations come from just 2% of donors. While philanthropy plays a crucial role, it is particularly vital during challenging times.

The Trump administration's recent policies have targeted colleges and universities with research funding cuts, student financial aid restrictions, and foreign student quotas. These measures have put university endowments in jeopardy, with new tax regulations proposed in 2026 threatening private schools' tax-exempt status. Meanwhile, enrollment trends show a decline in new students, exacerbated by a shrinking high school graduation rate due to a falling birth rate.

Despite increased financial aid, students and families continue to face affordability challenges. Some institutions are forced to close, such as Indiana's predominantly Black Martin University and Vermont's ecologically focused Sterling College. In 2025, $79 billion was donated to colleges and universities, a 4% increase in constant dollars from the previous year.

However, the majority of these donations are concentrated among a select few wealthy individuals. Philanthropy's importance is still vital, as seen in recent large gifts like Nike co-founder Phil Knight's $2 billion contribution to Oregon Health & Science University. Even smaller donations, like a $1.50 gift to Hampshire College, can make a difference when pooled together.

Donor engagement strategies include Giving Days, such as Oregon State University's Dam Proud Day 2026, which raised over $4.1 million from 12,400 gifts.