5 ms·

A bit tangential, but don't donate to Ivy Leagues. I get that you might feel a sense of pride in having graduated from the school, but with a 11 digit endowment

by huac 11y ago

A bit tangential, but don't donate to Ivy Leagues. I get that you might feel a sense of pride in having graduated from the school, but with a 11 digit endowment, you can rest assured that the school will be there for future students in perpetuity. Rather, give to state schools or community colleges or really, any other school. Help them serve students of all economic backgrounds, not just the elite. The most important consideration for spending money is generally its marginal benefit (obviously equal amounts are worth more to poorer institutions) but we could also think about this in terms of marginal students - how many more students can attend/graduate with less debt because of our donation?

spectre256 11y ago
But then you don't get invited to Ivy League donor parties
- JetSpiegel 11y ago
  In which you can make more money to donate to the fund. It's turtles all the way down
nostromo 11y ago
I agree with you, but many people see that as a plus when donating. If I give $x to an organization that desperately needs it, it will be spent immediately. If I give $x to an endowment, it will sit there in perpetuity, providing investment income to the organization for decades or centuries. Ben Franklin understood this and left a small amount of money (1,000 pounds) to the cities of Boston and Philadelphia in his will, instructing that the funds not be used for 200 years. http://eddiethompson.org/2012/09/30/franklin_endowment/ http://eddiethompson.org/2012/09/30/franklin_endowment/
- Cacti 11y ago
  Not to be flippant, but, it's a good thing Ben Franklin wasn't born in Zimbabwe!
  - Houshalter 11y ago
    Back then money was based on precious metals, not monopoly money. Although Early America did have problems with hyperinflation from war debts. Anyway the point is the money is invested, so it's not literally just cash sitting in a vault, but is earning itself interest.
    - justincormack 11y ago
      The point is that interest does not always cover inflation. The fact that money was gold or paper back then makes no difference. Invested money can be lost.
      - Houshalter 11y ago
        With a currency backed on gold there is no such thing as inflation. And in fact money tends to increase value over time, as the economy grows. Of course invested money can be lost, but on average it grows. The expected value of investing is almost always positive.
- tanderson92 11y ago
  Another good story and an excellent piece of reading on long-term trust funds (Methusaleh Trusts) was in Lapham's: http://laphamsquarterly.org/future/trust-issues http://laphamsquarterly.org/future/trust-issues
jacquesm 11y ago
And don't limit your search for schools to donate to to your country of residence.
sirkneeland 11y ago
There is a (very slight) incentive for an Ivy Leaguer to donate to his/her school: the accursed rankings often factor the % of alumni who donate into their ranking formula. I donate an insignificant amount to my alma mater for this reason. Then there's the potentially bigger incentive for an Ivy Leaguer to donate: to help their kids get in.

by huac 11y ago

spectre256 11y ago

But then you don't get invited to Ivy League donor parties

JetSpiegel 11y ago
In which you can make more money to donate to the fund. It's turtles all the way down

nostromo 11y ago

I agree with you, but many people see that as a plus when donating. If I give $x to an organization that desperately needs it, it will be spent immediately. If I give $x to an endowment, it will sit there in perpetuity, providing investment income to the organization for decades or centuries. Ben Franklin understood this and left a small amount of money (1,000 pounds) to the cities of Boston and Philadelphia in his will, instructing that the funds not be used for 200 years. http://eddiethompson.org/2012/09/30/franklin_endowment/ http://eddiethompson.org/2012/09/30/franklin_endowment/

Cacti 11y ago
Not to be flippant, but, it's a good thing Ben Franklin wasn't born in Zimbabwe!
- Houshalter 11y ago
  Back then money was based on precious metals, not monopoly money. Although Early America did have problems with hyperinflation from war debts. Anyway the point is the money is invested, so it's not literally just cash sitting in a vault, but is earning itself interest.
  - justincormack 11y ago
    The point is that interest does not always cover inflation. The fact that money was gold or paper back then makes no difference. Invested money can be lost.
    - Houshalter 11y ago
      With a currency backed on gold there is no such thing as inflation. And in fact money tends to increase value over time, as the economy grows. Of course invested money can be lost, but on average it grows. The expected value of investing is almost always positive.
tanderson92 11y ago
Another good story and an excellent piece of reading on long-term trust funds (Methusaleh Trusts) was in Lapham's: http://laphamsquarterly.org/future/trust-issues http://laphamsquarterly.org/future/trust-issues

jacquesm 11y ago

And don't limit your search for schools to donate to to your country of residence.

sirkneeland 11y ago

There is a (very slight) incentive for an Ivy Leaguer to donate to his/her school: the accursed rankings often factor the % of alumni who donate into their ranking formula. I donate an insignificant amount to my alma mater for this reason. Then there's the potentially bigger incentive for an Ivy Leaguer to donate: to help their kids get in.