The conventional thinking: Legacy students increase alumni giving. But new research shines a different light on the subject.
Almost ¾ of elite colleges grant legacy preferences in admissions. But research from the non-profit Century Foundation suggests it doesn’t result in major alumni giving. What’s more, legacy preferences may hurt the schools in the eyes of the public, the law and the IRS.
Among the findings:
- The public is against the practice – 75% of Americans polled were opposed to legacy preferences.
- Legacies don’t translate into funding – Researchers found the schools with preferences for children of alumni did have higher annual giving ($317 versus $201), but this was because alumni in schools with legacy preferences were wealthier. In other words, there was no real evidence that legacy policies affect giving behavior.
- Dropping legacy policies can increase giving – Looking at institutions that dropped legacy preferences, researchers found no short-term reduction in giving as a result of dropping the policy. In fact, after a small donation hit, Texas A&M’s giving actually increased.
- There are legal concerns – The practice of legacy preferences could be challenged under the Fourteenth Amendment’s Equal Protection Clause, which prohibits states from granting titles of nobility, and the 1866 Civil Rights Act (since legacy preferences disproportionately hurt minority student admissions).
- The IRS could get involved, too – If alumni donations result in legacy preferences, then the IRS argues they “enrich the giver,” in which case the donations shouldn’t be tax deductible. But if a school claims the donations aren’t linked to preferential treatment, then the rationale for legacy admissions is flawed.
What’s your opinion on legacy admissions? Share your thoughts in the comments section.