An Overdue Donor Revolution

American colleges and universities have long relied on generous philanthropists to steward their missions, balance institutional budgets, fund scholarships and provide opportunities for students who might not otherwise benefit from a university education. 

The scale of that support is enormous. According to the Council for Advancement and Support of Education, donors contributed $78 billion in fiscal year 2025. Private giving now accounts for roughly 10% of higher education expenditures nationally. Some of the country’s most storied institutions simply cannot operate at their current scale without philanthropic support. 

But what happens when the capital inflow begins to slow? 

Universities should be deeply concerned that the next generation of graduates may be both less willing and less able to support their alma maters. The strong headwinds now facing higher education could imperil the long-standing philanthropic tradition that universities have depended upon for generations. 

The average price of college now exceeds $38,000 per student per year, with private institutions often costing far more. Meanwhile, Americans collectively carry more than $1.8 trillion in student loan debt. Increasingly, graduates entering middle age are still paying for degrees earned decades earlier. 

That reality has consequences far beyond monthly loan payments. Heavy student debt delays home ownership, discourages entrepreneurship, postpones family formation and weakens long-term savings. Younger Americans are being asked to finance rising tuition costs while simultaneously navigating soaring housing, insurance and living expenses. 

In speaking with millennials, including my own five grandchildren, I sense a growing disregard for alma mater, attributed to the high cost of a degree for their generation along with its lack of relevance. Many do not associate their university primarily with opportunity or gratitude, but with debt and financial pressure. 

This does not mean younger generations are less charitable. In many respects, they are highly philanthropic. But their giving priorities are different. Their dollars often flow toward causes they perceive as more urgent, more accountable and more effective than institutions sitting atop multibillion-dollar endowments. 

Universities have also weakened some of the very traditions that historically cultivated lifelong alumni loyalty. Fraternity and sorority life has always been one of the strongest drivers of alumni engagement and donor participation. Yet many institutions increasingly move to eliminate Greek life altogether. The result is further erosion of alumni attachment to campus life and institutional identity. 

Despite these very real threats to alumni giving, universities continue to operate under increasingly obsolete business models. Administrative expansion continues while tuition rises faster than inflation. Too often, institutional success is measured by enrollment numbers and graduation rates rather than intellectual rigor, educational quality, or genuine student outcomes. 

Eventually, donors notice. 

And those that continue to give must become much more sophisticated in their philanthropy. 

As a proud alumni supporter, our family foundation continues to support universities. But our giving now comes with clear expectations attached. Institutions seeking our support must demonstrate accountability and a serious commitment to educational excellence. 

Among our requirements are adherence to the Chicago Principles on free expression, institutional neutrality, meaningful curricular standards such as a minimum “B” rating from the American Council of Trustees and Alumni’s “What Will They Learn?” initiative, annual third-party compliance reporting and meaningful matching commitments to ensure institutions have real “skin in the game.” 

In short: accountability now matters as much as affinity. 

The largest intergenerational wealth transfer in American history is about to unfold. If universities continue raising tuition while graduates struggle with debt into their 50s and 60s, philanthropic support for higher education may begin to resemble the declining life cycle of the internal combustion engine. 

The risk to the academy is not just the loss of a handful of major gifts. It is the erosion of a culture of alumni giving that universities have long taken for granted. In my own community around Lake Tahoe, I increasingly hear philanthropists discuss transferring their charitable investments elsewhere—to organizations perceived as more efficient, more transparent and more aligned with donor intent. 

Higher education remains enormously important to the future of this country. But institutions that wish to preserve the philanthropic support on which they depend must recognize that the donor landscape is changing rapidly. Nostalgia alone is no longer enough. Universities that embrace accountability, affordability, intellectual seriousness and reform will continue to earn support. Those that do not may discover that donor patience, like donor capital, is finite. 

Caveat dator—let the donor beware! 

This piece was originally published by Philanthropy Roundtable on June 18, 2026.