Yes. A lot of donations to schools are earmarked for specific things like libraries and sports complexes bearing the donor’s name. The university is then forced to hire all kinds of staff to run and maintain these buildings, lest they ruin their reputation by allowing the fancy buildings to fall into disrepair.
Donations that are earmarked to help students are in the form of scholarships and bursaries. To be honest, there aren’t nearly enough of those to go around.
>The university is then forced to hire all kinds of staff to run and maintain these buildings, lest they ruin their reputation by allowing the fancy buildings to fall into disrepair.
I talked with one of my professors at Iowa State about this topic. He said back in the day, donors only needed to pay the cost of the building and then the university would get hit with tons of maintenance and utility expenses.
For some time now, they have to donate the cost of the building and money for an endowment for expected maintenance costs and operating costs.
Fancy buildings are a marketing tool for schools, even if they're unneeded. Schools would rather raise tuition and compete for ever-wealthier students than refuse a shiny new building.
Donations that are earmarked to help students are in the form of scholarships and bursaries. To be honest, there aren’t nearly enough of those to go around.