Despite a marked increase in private donations to overseas universities, Stanford still benefited from a record $603.9 million in gifts last year.
That figure, representing the fiscal year ending Aug. 31, 2005, constituted a rise of approximately 15 percent, or nearly $80 million over the previous year’s total.
“There have been more gifts to organizations outside the U.S.,” said John Ford, senior vice president for University resources. “There is no doubt about it.”
Still, Stanford outstripped any other school of higher education in the United States in terms of private donations, he added.
Though conceding that the University always faces stiff competition from other schools, Ford reported that, “We’ve done very well.”
Much of the overseas giving now comes from and goes to either the United Kingdom or Asia.
According to Ford, in the late 1980s, Cambridge and Oxford took notice of the success of American universities, particularly their ability to appeal to donors.
Consequently, he said those schools, “contacted and involved their alumni in a way looking a lot like the private universities in America.”
In addition, a number of high-profile, large-scale donations have gone to Oxford and Cambridge. Tom Tseng, associate director of development at the Office of Asian Relations, pointed out the publicity surrounding the Bill and Melinda Gates Foundation’s $210-million gift to Cambridge in 2000.
As part of the school’s 800th Anniversary Campaign, Cambridge has initiated a $1.78-billion goal for donations.
Ford also emphasized the shift in giving to and from universities in Hong Kong, Singapore and the People’s Republic of China.
“There are many wealthy people of Chinese ancestry making large gifts, feeling that since China is thriving, [they should promote] opportunities to help educate in that country,” Ford said.
He added that, “some of the universities are really trying to grow, particularly in the mainland. Some of the biggest gifts are being announced in that part of the world.”
Universities in Asia are also making an effort to mimic the successful American fundraising strategies. Tseng provided the example of a colleague who worked to fundraise for Princeton University and was lured to China by Tsinghua University in Beijing.
So, how has Stanford been able to counteract the appeal of overseas universities to its prospective donors?
Rebecca Smith-Vogel, director of marketing and communications at the Office of Development, credits Stanford being Stanford.
“As far as appealing to overseas donors,” Smith-Vogel said, “Stanford really is becoming an increasingly global university.”
Smith-Vogel attributes Stanford’s appeal in part to University President John Hennessy’s three initiatives on international affairs, environmental stability and human health.
“These initiatives,” explained Smith-Vogel, “have the potential to have tremendous impact on what have been considered intractable global problems.”
As Stanford provides donors with many reasons to invest in the University, more total donations worldwide will only result in more money funneling into Stanford’s coffers.
Ford and Tseng cite the proven qualities of Stanford academics and money-management history.
“We are the best in the industry,” Ford said. “Students are coming from all over the world to train here.”
Tseng also credited the Stanford name-brand and its ability to stand on its own.
“Stanford manages donors’ gifts carefully,” Tseng said. “We have a good track record of growing gifts. That’s what a donor wants to hear: that their money is going to good use.”
All the competition from other schools — both overseas and domestic — is healthy. And according to Ford, in the end, to the University’s advantage because, “Stanford offers good reason to invest in us.”
The issue is less about money simply being diverted from Stanford to various universities in China, but instead more about a general trend of increased giving from Asia, among other places.
“The pie for philanthropy is getting bigger,” Tseng explained.
Ford agreed.
“Our percent may not go up, but it is a percentage on a much larger amount being given away,” he said. “I think it is a situation where all boats can rise in this tide.”

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