gains because the college pays no capital gains tax and because a substantial proportion of the gift is tax deductible. Annuities and life contracts do not account for a large part of total gifts; but of a sample of 120 colleges and 32 universities, 56 and 59 per cent, respectively, solicited life income trusts as a means of obtaining funds. An excellent presentation of the possibilities is given in Americans Like to Give.
Then there is a technique developing widely among new IHL: the sponsors shop around seeking the largest donation from local interests as a return for establishing a college in a particular locality. A Presbyterian college selected St. Petersburg, Florida, among 20 competitors because the authorities offered a site valued at $2 million and help in raising $2.5 million. Another Presbyterian college in a competition among 18 towns in North Carolina accepted an offer from Laurinburg of $3 million and a pledge of $1.6 million from the Synod of North Carolina.
As the proportion of college-age population at college increases, the importance of alumni gifts is likely to become of increasing importance. The average year of graduation of the large donors examined in the next chapter was 1900. At that time but 4 per cent of the college-age population was at college: the figure now is 36 per cent. For this reason the gifts from alumni through annual drives or the big drive are likely to become more important. Thus in 1946 annual giving at Harvard and Yale yielded $328,000 and $368,000, respectively. By 1960 the totals had risen to $1,238,000 and $2,313,000. But it is also well to note a contrary trend related to the increasing significance of governments, business corporations, and welfare foundations. These three categories accounted for more than 40 per cent of all gifts in 1958-59.1