How Giving to the University Works

Many graduates choose to support the university that shaped them. This page explains how university giving works—the main types of gift, how endowments and planned gifts operate, and national giving trends. It is an explainer only, and this guide accepts no gifts.

Why Universities Seek Gifts

Public universities face ongoing funding challenges. While state support remains important, it covers a decreasing percentage of operating costs. Tuition increases are carefully constrained to maintain access for Tennessee families. The gap is filled by philanthropic support from people who understand UT's value because they experienced it themselves.

Alumni giving makes a measurable difference:

• Scholarships reduce student debt and enable talented students to attend UT regardless of financial circumstances
• Endowed professorships attract and retain world-class faculty who drive breakthrough research
• Facility improvements create modern learning environments that prepare students for 21st-century careers
• Program support funds experiential learning, internships, study abroad, and research opportunities
• Annual fund contributions provide flexible resources that university leaders can deploy where they're needed most

According to the Council for Advancement and Support of Education (CASE), alumni participation in giving—regardless of gift size—signals institutional health and attracts additional funding from corporations and foundations.

National Giving Trends

The Council for Advancement and Support of Education (CASE) estimated voluntary support to U.S. higher education at $78.8 billion in fiscal year 2025, up 4% from the prior year. Its 2025 national giving findings describe a fourth consecutive decline in alumni donor numbers alongside rising giving per donor. Median alumni giving per donor reached $1,895. A median marks the middle of the distribution, so it should not be read as the amount contributed by every donor.

The report also found that 89% of funds received came from 2% of donors. Rising dollar totals and falling participation therefore describe different aspects of support. Revenue can grow even as the number of people contributing falls. These national patterns do not establish the giving totals or participation rate of an individual university.

Among survey respondents, 81% of donations were earmarked for specific purposes, especially student success, financial aid and research. Bequests accounted for 23.7% of personal giving in 2025. Reading the purpose of contributions, the number of donors and the amount received together gives a fuller picture of higher education philanthropy than any one headline total.

Common Types of Gift

University gifts generally fall into a few types:

Annual Fund

Unrestricted annual gifts provide immediate support for the university's most pressing needs. These flexible funds allow deans and department chairs to respond to unexpected opportunities, assist students facing emergencies, and invest in emerging priorities.

Scholarship Support

Student debt is one of the greatest challenges facing today's graduates. Scholarship gifts directly reduce this burden:

• Need-Based Scholarships: Support for talented students from low-income families
• Merit Scholarships: Support to attract top students who might otherwise attend competing universities
• Program-Specific Scholarships: Support for students in a particular major or college
• Named Endowed Scholarships: Permanent funds established in a donor's name or in honor of a beloved professor

Endowed scholarships generate annual scholarship awards in perpetuity, and minimum amounts are set by each institution. One gift can impact hundreds of students across generations.

Academic Program Enhancement

Program gifts can:

• Fund cutting-edge laboratory equipment and research facilities
• Support study abroad scholarships and international experiences
• Sponsor student research grants and creative projects
• Endow lecture series bringing distinguished speakers to campus
• Create innovation labs and makerspaces for experiential learning

Faculty Support

Great universities are defined by great faculty. Faculty gifts can:

• Establish endowed chairs and professorships
• Fund junior faculty research grants
• Support faculty development and professional enrichment
• Provide resources for innovative teaching methods and course development

Facility and Capital Projects

Modern facilities enhance learning and research:

• Classroom renovations with updated technology
• Recreation and wellness facilities
• Library improvements and digital resources
• Athletic facilities and training centers
• Student union and gathering spaces

Very large capital gifts sometimes carry naming recognition.

Donor Recognition

Universities and their foundations commonly recognize donors through giving societies and published honor rolls. Levels and benefits vary and are set by each institution, so this guide lists none.

Planned Giving and Legacy Gifts

Planned gifts are arranged as part of estate and financial planning:

• Bequest Gifts: A bequest to a university in a will or trust
• Charitable Gift Annuities: Gifts that pay the donor income for life
• Retirement Account Gifts: A university named as beneficiary of IRA or 401(k) accounts
• Life Insurance Gifts: Paid-up policies or a university named as beneficiary
• Real Estate Gifts: Gifts of property to fund scholarships or programs

Universities typically have gift-planning staff, and a donor's own attorney or financial adviser can explain the tax effects.

Matching Gifts

Many employers match charitable contributions dollar-for-dollar (or more). Check with your human resources department to see if your company participates in matching gift programs. You can often double or triple your impact simply by completing a form.

Volunteer Your Time and Talent

Giving back isn't only about money. Your time and expertise are equally valuable:

• Mentor current students exploring your career path
• Serve on alumni chapter boards or advisory committees
• Speak in classes or at career panels
• Host internships or job shadowing experiences
• Participate in admissions recruitment events
• Volunteer at alumni service projects

Student Emergency Fund

Student emergency funds, which many universities run, provide rapid assistance to students facing unexpected financial crises that threaten their ability to stay enrolled:

• Medical emergencies and unexpected health costs
• Family emergencies requiring travel
• Housing instability or eviction prevention
• Technology needs for remote learning
• Food insecurity and basic needs support

These small grants—often just a few hundred dollars—can make the difference between a student completing their degree or dropping out.

Where Gifts Go

Gifts reach students and programs in many ways, supporting:

• First-generation students who become the first in their families to earn college degrees
• Researchers making breakthroughs that improve healthcare and solve global challenges
• Student organizations creating inclusive communities and developing future leaders
• Athletes competing at the highest levels while earning meaningful degrees
• Artists and musicians sharing their gifts with campus and community

Universities commonly publish impact reports showing how gifts are used.

Tax Benefits of Giving

Gifts to a public university, or to a 501(c)(3) foundation that supports it, are generally tax-deductible to the extent allowed by law. Benefits may include:

• Income tax deductions for cash and appreciated asset gifts
• Capital gains tax savings on donated stock or real estate
• Estate tax reductions through planned gifts
• State tax credits for certain types of gifts (check Tennessee tax laws)

Consult your financial advisor or tax professional to understand how charitable giving fits into your overall financial plan.

Before You Give

This guide is independent and accepts no gifts; it cannot process, receipt or direct a contribution. Anyone who decides to give should use the university's own giving channels and confirm the recipient before sending anything.