PAUL E. KLOPSTEG 



The institutions would have a strong ineentive to work harder 

 for funds for which they would be accountable only to their 

 own boards of direction. For the donor, the opportunity of 

 individual decision on amounts and objects of gifts would in- 

 crease his interest in higher education generally and sustain it 

 specifically in the institutions which he helps to support. 



Another substantial benefit inures to the taxpayer through 

 direct giving. It has been estimated that for each dollar going to 

 a university via government, the individual or corporation must 

 pay between two and three dollars in taxes. This means that the 

 tax dollar has one-half to two-thirds of its value worn away while 

 in the government pipelines. Direct giving therefore means a 

 substantial net saving to the taxpayer. 



It is impossible to predict with assurance to what extent 

 gifts to higher education would increase under the proposed 

 amendment. In the years following its adoption, the present 

 rate of giving might rise six, eight, perhaps ten times. Certainly 

 the fraction of adjusted gross income given would increase very 

 substantially. Effects of the suggested change could be learned 

 only by trial. It is an experiment very much worth trying. To 

 make the experiment possible, permissive legislation is needed. 



If the proposed plan is thought to be less than perfect — 

 and no plan can lay claim to perfection — its flaws must be 

 weighed against its positive and beneficial features. If the latter 

 heavily outweigh the former, adoption of the plan would not 

 only provide the benefits, but also present the opportunity of 

 making improvements prescribed by experience. Imperfections 

 should not be a bar to adoption, but rather should offer a chal- 

 lenge for devising such improvements as might be desirable. 

 A special challenge faces those who believe in the objective, 

 namely, to assure action without further delay for stimulating 

 and increasing private giving to higher education. If there is a 

 better plan, it should take the place of the one proposed. The 



200 



