Dive Brief:
- Donors gave $61.5 billion to U.S. colleges in the 2023-24 fiscal year, reflecting a 3% increase from the year before after accounting for inflation in the sector, according to an annual report from the Council for Advancement and Support of Education released Thursday.
- Foundations increased their giving the most, contributing $20.4 billion, a 10.1% year-over-year jump. Conversely, corporations pulled back their higher education donations to $7.6 billion overall, a 9.9% drop from the prior year.
- Charitable giving remains a stable source of income for the sector, according to the report, accounting for 10.2% of colleges’ educational and general expenditures in 2024. That’s roughly level with the rate seen a decade prior — 10.5%.
Dive Insight:
The findings, based on an annual survey of higher education institutions, suggest that charitable giving to higher education institutions did not slow in fiscal 2024. That’s despite sectorwide headwinds including painful cost increases, rising scrutiny from state and federal lawmakers, and questions about its value.
“At a time when higher education faces financial and political scrutiny, this sustained giving is a powerful vote of confidence,” Sue Cunningham, president and CEO of CASE, said in a statement.
Strong market conditions in fiscal 2024 likely helped boost charitable donations, as giving to colleges tends to rise when the economy does well, according to CASE’s report. In 2024, both the New York Stock Exchange and the U.S.’ gross domestic product saw increases.
“Voluntary support of higher education institutions in the U.S. expanded at a level between the two, illustrating that the level of giving is based on both economic factors,” the report said.
Foundations weren’t alone in increasing their charitable giving to the higher education sector in fiscal 2024.
Alumni gave $12.9 billion, up 4.4% from the year before, while non-alumni donated $8.9 billion, a 1.7% increase. Donor-advised funds — many of which are funded by alumni, according to CASE — gave $6.5 billion in fiscal 2024, representing an 8.9% jump from the prior year.
Among donor-restricted gifts to colleges’ endowments, 48.3% were designated for student financial aid in fiscal 2024. Roughly a quarter, 23%, went toward academic divisions, while another 15.9% went to employee compensation. The remainder was spread among research, athletics and student life.
Groups also donate to colleges’ current operations. Among those contributions, 43.6% went toward research in fiscal 2024, 28.1% went toward academic divisions and 12.8% went toward athletics. Financial aid, employee compensation and student life received the rest.
The results also indicate the number and value of gifts of securities, such as stocks, are rising. In fiscal 2024, 240 surveyed colleges said they received $2.4 billion in securities spread across nearly 28,200 gifts. That’s compared to $1.7 billion across around 24,400 gifts the previous year. The report also noted that gifts of securities are “worth more in a more robust market.”
