Princeton University is currently preparing to defend itself against what could be a staggeringly painful loss to its endowment.
The college stands to lose $880 million if the heirs to a donation made to the school in 1961 persuade the court that the university used the money for a purpose other than that which was originally intended.
While this particular case asks for what may seem to be a preposterous settlement, universities must be held accountable for honoring their donors’ intents.
Such a policy would hold universities to a greater level of transparency and responsibility in spending, ensuring that alumni and donors wishing to create change in a university can rest assured that their money will be well-managed.
In 1961, Charles and Marie Robertson donated $35 million to Princeton’s Woodrow Wilson School of Public and International Affairs ““ ostensibly to help the school churn out diplomats and employees of the federal government. The Robertsons’ heirs now allege that the university mismanaged that money, which has now inflated to the $880 million the three heirs wish to revoke.
According to The New York Times, Princeton is not the only university suffering from such mismanagement and its consequences.
Yale recently forked over $20 million to an alumnus who said the courses he wished to be added to the curriculum had not been created.
To avoid such mistakes, colleges should pay greater heed to the wishes of those who donate to their funds and foundations.
They should also not take money from those who may have requests that are in discord with the desires of the university.
Admittedly, such a policy of personal power would place a great deal of academic power in the hands of a select, rich community of Ivy League graduates.
And yet, it is this distinction that sets private schools apart from those that are more publicly funded.
With private money comes the stain of private interests. Elite, private colleges thrive on the notion of selectivity, and they should pay equal attention to the requests of those who fund their programs.
Princeton’s total endowment is $15.8 billion ““ for 4,790 undergraduates and 2,010 graduate students. The $880 million, while certainly quite a difficult sum for the college to part with, constitute less than 6 percent of its funds.
According to The Wall Street Journal, both sides have spent about $20 million on their legal fees and attorney’s wages.
Furthermore, neither the Yale case nor the present Princeton problem require or ask for any particular ideology to be taught. They only ask that certain courses and opportunities be created in order to fill what the donor sees as a void ““ either in the university or in society at large.
The judge in the case has not ruled in favor of either side. Judge Neil Shuster of the New Jersey Superior Court has only allowed the case to go to trial, adding that it would take very serious violations of the gift’s purpose to have it revoked.
This does, however, set a precedent offering donors a path to voicing their disappointment with the way universities have handled their funds.
It even allows for said donors to take legal action against the schools, making real the threat of the funds being rescinded, even if none of this action takes place until 40 years after much of it has been spent.
Thus, while the Robertsons bear a heavy burden of providing justification for the return of their donated funds, they have already accomplished a great deal in terms of providing incentives for other privately funded schools around the country.
They have shown college administrators that it is necessary to take heed not only in spending donated money but also in accepting money from those who may have interests contrary to the university’s own goals.
In all likelihood, Princeton would ultimately be able to sustain a loss of $880 million, even though it is improbable that they will end up having to pay the money back to the donors.
What will not survive is the mentality that private institutions of higher education somehow operate in a world of blank checks from alumni and unlimited expenditures and profits.
When private schools accept gargantuan donations, they should not be so foolish as to think that such money comes without expectations and consequences.
Really just upset that a school with less than 5,000 students has so much green? E-mail Makarechi at kmakarechi@media.ucla.edu.
General comments should be sent to viewpoint@media.ucla.edu.