On top of these direct compensations, there are a couple of others to consider: 4) When you go to a school such as Harvard, your experience is being subsidised by the Alumni. Once you too are an alumni, you would have to be a poor person indeed to not feel at least a little obligated to do the same for the next generation, if your circumstances permit it. 5) If you do have money that you want to donate, I for one can think of few rational choices that are better for society than a university. However the university uses that money, it will help them to obtain the best researchers (either directly or indirectly), and help those researchers get access to the funds they need to improve the state of human knowledge.