Education: Recession Bonus

While sending out bad news to the stockholders in recession year 1958, U.S. corporations voluntarily shouldered a heavier share than ever of the massive costs of U.S. higher education. In its biennial survey of 352 representative companies, the Council for Financial Aid to Education (chaired by Irving S. Olds, former board chairman of U.S. Steel) reported this week that last year’s corporate gifts to colleges were up 23.5% from 1956. Unrestricted gifts, the educators’ favorite type, led the list with 34% of the total, and even a few red-ink companies kicked in. But the council hopes that corporate giving is still in its infancy. Donations to education by the sample companies amounted to only .27% of net income before taxes, said the council, and total corporate gifts, an estimated $136.5 million, amounted to only one-sixth the aid from noncorporate donors such as foundations, churches and the loyal old alumni.