Consider the case of engineer and philanthropist Henry Rowan. Although he graduated from MIT, Rowan donated $100 million to Glassboro State College in 1992, an unheralded regional university. At the time, it was the largest-ever gift to a public college. The institution is now called Rowan University and has a top-20 engineering program. Are there schools besides your alma mater where you would be glad to make an impact—schools in the state where you established your business, schools that your top employees attended, or from which your children earned their degrees? Schools where you might find academic or extracurricular programs aligned with your values or interests?
Take your time, and truly understand whether the school you consider first is the right institution for your money.
Find Faculty ‘Guarantors’
Faculty can be powerful allies in preserving donor intent and helping donors craft programs that create new opportunities for students. After all, it is faculty who will determine a program’s intellectual content, organize the program’s events, and advertise them to the student community and beyond.
More than anyone, they will serve as the intellectual “guarantors” of a program.
Over 15 years ago, Gary Gerst, a Duke University alumnus, Chicago businessman and philanthropist, collaborated with a political science professor at Duke to conceive an initiative focused on American ideals and institutions. With the professor’s on-campus leadership and the Gerst’s support, the initiative has grown into a leading program at Duke.
Establish ‘Audit’ Procedures At The Outset
University donors often create their wealth through astute business dealings and negotiations. They ask for information rights when making minority investments and set key performance indicators to track progress against clear goals. Gift agreements should also include a transparent process for measuring and reporting on progress with a pre-set timetable. Prioritize the key outcomes that are important in accomplishing a donor’s intent and, where appropriate, leave sufficient flexibility in how the gift is implemented to accomplish the intended purpose.
When Herbert W. Vaughan, a prominent Boston attorney and philanthropist, funded the creation of a Harvard Law School lecture series, his gift agreement stipulated that a statement outlining his reasons for funding the series must be read prior to each lecture, one of several provisions designed to ensure effective oversight of the program after his death. A gift agreement may include key performance indicators and reporting requirements that measure the success of a donor-funded program.
Long-term and endowment gifts should include provisions for a donor representative to receive reports and oversee gift use after the death of the donor. For donors who are giving while living, terms that allow for active engagement, such as serving on advisory committees established in connection with programs being funded, or regular meetings with university representatives, can play a critical role in preserving donor intent by providing donors information they need to evaluate how the gift is being used.