Philanthropic Giving by Foundations to Higher Education Institutions: A State-Level Social Network Analysis

Abstract:Philanthropic foundations have played a prominent role in U.S. higher education, especially since the latter half of the 20th century. However, there is a scarcity of empirical research on the relationship between philanthropic foundations and higher education institutions. The purpose of this study was to examine philanthropic giving by foundations to higher education institutions in the state of North Carolina utilizing social network analysis. Consistent with social network theory, the paper argues that institutions' position in a network affords advantages with respect to competing for and securing foundation donations. Findings from the analysis suggest that highly selective and research-oriented institutions, such as Duke, Wake Forest, and the University of North Carolina-Chapel Hill, are centrally positioned in the network and, therefore, advantageously positioned to compete for and receive foundation donations. By contrast, baccalaureate institutions that serve larger numbers of students from marginalized racial and financial backgrounds are less advantageously positioned in the network.