Donors with demands

Our editorial page editor, Prameet Kumar, brought this interesting article from Bloomberg to my attention today: It's about big-time donors at schools around the country who expect some level of involvement in the allocation of their funding. For example the chairman of BB&T has been funding programs at schools that teach Ayn Rand's Atlas Shrugged as an avenue to understanding capitalism.

Of course, my mind turned quickly to athletics, as did the article:

Many donors today insist on more than a marquee. Robert Burton, who runs his own investment firm in Greenwich, Connecticut, said he gave more than $7 million to the University of Connecticut with the understanding that he would have a say in the football program. In January, he asked for his gift back, saying the school hired a football coach without consulting him first. A month later, the university announced that it and Burton had reconciled their differences.
“Donors want something back, and in many cases they want a say-so in what’s happening,” Siegel says. “When their money isn’t used the way they want it to, they are unhappy.”

On the other hand, these donors are philanthropists making charitable contributions — how much say can they expect to have over a donation? Further, shouldn't the athletic department administration have the final say when it comes to important decisions such as coaching hires?

It must be incredibly tough for athletic departments to balance their own concerns with the promise of millions in valuable fundraising.