- Donations to higher education rose to an estimated $78.8 billion in fiscal 2025 – a 4% increase over the prior year, according to a new report from the Council for Advancement and Support of Education, or CASE. The report – based on a survey of 670 institutions of higher learning – states the change was “just enough to keep up with inflation” and reflects the “continued trust that donors place in educational institutions” to use their donations to make a difference.
- About 60% of institutions reported increases in donations, and 57% reported increases in new funds committed, the report states.
- While the total amount of money donated by alumni increased by 10.9% to $10.4 billion – and institutions are seeing larger gifts per donor – the actual number of donors is dwindling, especially among those who gave smaller gifts. “As a result, institutions are increasingly relying on a narrower, higher-capacity donor base to sustain their philanthropic revenues,” the report states. It notes that just 2% of donors were responsible for 89% of funds received in fiscal year 2025.
The bigger picture:
The increase in donations to institutions of higher education comes at a time when per-student spending is down one percent – from $12,205 per student in fiscal 2024 to $12,082 per student in fiscal 2025. That’s the first reduction in per student spending since 2012, according to an April report from the State Higher Education Executive Officers Association, or SHEEO. The reduction took place despite a record $130.7 billion in public higher education appropriations, the report states.
The boost in giving also comes at a time when the Pell Grant program – a federal program meant to help students of modest means cover the cost of college – is facing an $11 billion shortfall.
Among other things, the CASE report seeks to take a more granular look at where donors are seeking to make an impact – and how advancement teams can tap into donors’ interests. For instance, the report notes that both the share and total dollars donated for current operations increased, but giving dropped in gifts for property, buildings and equipment, as well as for restricted endowment.
A forthcoming CASE report will show that private institutions largely drove the shift toward giving to current operations, “suggesting donors’ preference for immediate impact over long-term investment,” the report states. It states further that Public institutions tended to focus more on restricted current operations, reflecting “continued donor alignment with institution-defined priorities, even as donors across the sector seek increased options for how and where their giving will make an impact.”
