In fact, from a financial perspective, State institutions could more accurately be called State assisted institutions. The margin of excellence lies in private giving. Most State support of public institutions is in the form of annual appropriations for operations or multi-year funds for specific capital projects. Private support, on the other hand, can take the form of an endowment, which provides a dependable, continuous stream of income, allowing institutions to plan and grow. Endowed chairs and other financial incentives help institutions compete for world-renowned faculty, while scholarships and fellowships attract the brightest undergraduate and graduate students.
Private support can also accelerate the modernization of facilities and equipment.
However, the philanthropic world is changing just as rapidly as other components of higher education, and institutions must respond quickly. In addition, the rapid success of technology companies is significantly reducing the age of both private and corporate donors that our institutions need to cultivate. In other cases, institutions themselves will be investors, becoming part owners of promising companies by underwriting their start-up costs. These entrepreneurial partnerships are already developing in a variety of forms, and will be even more prevalent due to increased competition for corporate and foundation dollars. Develop more for-profit, joint ventures with the private sector.