Nike cofounder Phil Knight and his wife Penny’s $1bn donation to University of Oregon, to set up a new engineering college specialising in bioengineering and other “high-demand” disciplines, merits attention. It’s been described as the “largest gift ever made to a comprehensive public university”, but even in the wider world, it’s a lot. Startups that attain $1bn valuation are still feted as unicorns. The Knights’ $1bn donation is extra-special because it’s gone to a “public” university, where fees aren’t set with an eye on profits.That’s as it should be. For a country to progress, education can’t bebehind high paywalls. One way to achieve this is for govt to spend more on education. The other is for private parties to chip in. US is lucky it has a culture of philanthropy that serves educational institutions generously. Last year, Americans gave $78bn – 7.48L cr – to colleges and universities. Donors include not only the super-rich, like the Knights, but also ordinary alumni – the median alumni contribution is $1,895.That culture can be a game-changer for India. We have a shortage of good public educational institutions now. For example, there are only 64,121 seats in govt medical colleges for over 22L applicants. Most of these candidates can’t afford private colleges where fees can be up to 250x higher. That’s where our growing army of high-net-worth families – those worth over $30mn – can help. Recent estimates put their number at 26,000 by 2030. Plus, the number of Indian dollar billionaires, per one rich list, is approaching 400. Currently, private philanthropy for all causes in India adds up to about $16bn a year. Channelling more of it towards public educational institutions can address the funding problem.Of course, donors will expect accountability, so some oversight mechanism will be required. Also, to prevent most donations from going to select high-profile institutions, like the top IITs – IIT Madras alone raised 513cr in funding from donors in 2023-24 – govt could draw up a list of projects it wants to implement across states. New medical colleges with affordable fees and good faculty, for example. As Indian families grow wealthier, their philanthropic contributions will only grow. And because they place a premium on quality education, they will be happy to fund govt colleges and universities. Philanthropy can’t solve all of public education’s problems, but it can lighten govt’s burden, and help more students pursue their dreams.
Disclaimer: Views expressed above are the author’s own.