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FloatingByWater t1_jch5lgn wrote

Reply to comment by demonfish in [OC] American College Acceptance Rate vs. Endowment. (My first attempt to visualize using R) by MasterDio64

Universities essentially have trust funds - it's the money that alumni and others have given over the years to the university. The university then invests that money to grow but also uses it to finance things like financial aid.

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jelhmb48 t1_jckcard wrote

Why do American alumni give so much money to the university they studied at? Especially considering the sky high tuition most paid already to that uni, it seems strange to me people willingly donate even more money to that institution. Is it a prestige thing?

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FloatingByWater t1_jckm0i8 wrote

I’m probably not the best to ask, as I’ve only donated small amounts to where I went to university. For me, it‘s mostly emotional, in that I have really good memories of both my undergrad and graduate universities. I’ve mostly chosen to do so when there’s a particular program/initiative that I care about raising funds.

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