>First off, most of this funding will go to a building. The rest will go mostly to an endowment.
Academic institutions are also tax-exempt, therefore don't pay any tax on the profits of any endowment or real-estate investment gains. The rise of the ivy-league schools becoming glorified tax-free holding companies, with education side-gigs, corresponds with the bloat in academic administration.
> Stanford's vast holdings. Stanford, Silicon Valley's largest property owner, controls more than 5,000 acres in Palo Alto and unincorporated Santa Clara County. On that land are the university's sprawling campus, a shopping center, tech offices, apartment buildings and entire residential neighborhoods.
> The value of Stanford’s empire is larger than those of Google, Apple and Intel combined.
Why? For tax purposes.
Upon first hearing this I was shocked and disappointed. Over time I've lowered my hopes and expectations, and come to accept it for what it is:
Old, elite, uber-wealthy white men at the top, who want it to stay that way.
https://www.google.com/search?q=Stanford+president
https://en.m.wikipedia.org/wiki/File:Marc_Tessier-Lavigne_at...
References:
"The Stanford Empire", by Mercury News
> Stanford's vast holdings. Stanford, Silicon Valley's largest property owner, controls more than 5,000 acres in Palo Alto and unincorporated Santa Clara County. On that land are the university's sprawling campus, a shopping center, tech offices, apartment buildings and entire residential neighborhoods.
> The value of Stanford’s empire is larger than those of Google, Apple and Intel combined.
https://extras.mercurynews.com/whoowns/stanford.html
"How Stanford Came to Dominate the Landscape in Silicon Valley", by KQED
> The value of Stanford's real estate empire is greater than the holdings of Google, Apple and Cisco combined.
https://www.kqed.org/news/11781771/how-stanford-became-the-l...