Don’t give to Harvard and Ivy League schools. A superior alternative already identified by MacKenzie Scott

(SeaPRwire) –   In the previous year, philanthropist MacKenzie Scott initiated a major charitable campaign, donating $740 million to 16 Historically Black Colleges and Universities. This provides a significant lift for schools that have historically functioned with insufficient funding, yet it does not indicate a widespread change in donation patterns.

Donations of this magnitude to financially strained colleges are still uncommon, whereas elite universities persistently attract much larger amounts annually. Institutions like Harvard and Yale no longer require financial support, but they consistently receive it.

The collective endowment of the eight Ivy League schools exceeds $200 billion. This figure alone dwarfs the assets of entire educational sectors that serve a far greater number of students. The more than 100 HBCUs collectively have endowments totaling only $4 to $5 billion.

Approximately 1,000 community colleges in the U.S. possess roughly $655 million in endowment assets. Around 400 regional public universities hold between $30 billion and $50 billion. Even combined, these sums are insignificant next to the wealth of the Ivy League. However, when the public is seeking greater value, the most substantial outcomes are generated by these very institutions.

Scott seems to grasp a concept that many contributors have not fully embraced: the most astute investment is not necessarily in universities with vast endowments and extensive resources, but in colleges that have managed for generations to achieve significant results with minimal means.

HBCUs have a proven history of promoting economic advancement for marginalized communities. Community colleges and regional public universities provide accessible education to millions annually, creating affordable routes to careers and degrees that can alter family futures for generations, all while operating on very tight budgets.

Consider the potential impact if more donors chose to support institutions that deliver the most value per dollar, rather than automatically giving to their alma maters. HBCUs and other financially constrained colleges provide the highest philanthropic return in higher education. A $1 million donation to Princeton has a negligible effect on the earnings from its $34 billion endowment.

That same $1 million could significantly increase scholarship funds at an HBCU, overhaul a community college’s job training initiative, or update obsolete laboratories for STEM education.

The United States is approaching the most significant transfer of wealth between generations in its history. Baby boomers and older generations are expected to pass on approximately $84 trillion to heirs and charities by 2045. Although families will receive the bulk of this capital, trillions will be allocated to various organizations.

Educational institutions are frequent beneficiaries when wealth is transferred. However, most donors instinctively contribute to their alma maters or well-known names. Gifts to the richest universities have minimal impact, comparable to adding a single snowflake to an avalanche.

In contrast, HBCUs, community colleges, and other underfunded institutions function with much smaller budgets but yield exceptional results. Although HBCUs constitute only 3% of the nation’s colleges, they award a disproportionately high percentage of degrees to Black graduates, including nearly 25% of all Black STEM degrees. Their graduates often emerge as community leaders, helping to narrow racial wealth disparities and promote intergenerational mobility.

Community colleges serve over 10 million students, many of whom are first-generation, employed, or adult learners. These schools are powerful catalysts for opportunity, operating with remarkably limited resources. Despite their proven effectiveness, they rarely attract large philanthropic investments.

The landscape is beginning to shift. In the fall of 2025, Scott announced a transformative $70 million gift to UNCF, the largest private scholarship organization for minority students in the country, where the author holds the position of senior vice president. This contribution will enhance educational access for future students and strengthen a shared endowment for its 37 member institutions. Separately, Huston-Tillotson University, an HBCU in Austin, Texas, recently received a record $150 million donation from the Moody Foundation.

It is ironic that many donors navigating this unprecedented wealth transfer, who built their fortunes through careful investing, often distribute their final charitable gifts with far less diligence. Donors concerned with their legacy should apply the same strategic consideration to their philanthropy as they do to their financial portfolios.

If the objective of philanthropy is to create opportunity, the highest incremental benefit is achieved by investing where funding is most needed. For these institutions, every additional donation can profoundly improve student success and community welfare in a way that further funding for wealthy, elite schools cannot.

The return on investment for human potential is greatest where each dollar creates a noticeable impact, rather than being absorbed into an already immense pool. Legacy donations are most effective when directed toward areas where they will have the greatest effect. The conclusion is evident: intelligent giving prioritizes tangible impact over prestige or sentiment.