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How billionaires (legally) inject millions of dollars into their children's schools




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es Wexner, the billionaire who controls Victoria's Secret, did not go to Harvard. He graduated from Ohio State University in 1959. But he started donating to Harvard. in 1989 and gave the the nation ranked university $ 1.5 to $ 2.1 million a year from 2003 to 2012.

In 2013, The Wexner Charitable Foundation has significantly increased its donation by donating $ 8.5 million to the university as part of a long-standing building project. It was also the year when the first of his four children started as a freshman at Harvard.

The donation continued. Its foundation awarded $ 26 million to Harvard in 2014, $ 7 million in 2015 and $ 14.5 million in 2016. The other three children of Wexner have enrolled at the university in 2014, 2015 and 2017. His children are not left behind: one is a rower of the second team, an Ivy League, another pursues graduate studies in education (at Harvard) and another. the Kennedy School of Government of the University.

The WexnerStephen Webster AK

But in the ultra-competitive environment of the Ivy League, where even the most qualified students can be rejected, bearing the surname "Wexner" at the university where your father has regularly donated. surely not bad.

Wexner's cash transfers embody common billionaire behavior. Unlike those taken in the Admissions to FBI universities sting This week, American billionaires do not have to break the law to help their children enroll in the best universities: they can and often use their inheritance and money instead. And they have been doing it for generations. & nbsp; & nbsp; & nbsp;

A member of the president is perhaps one of the best known examples of a billionaire family donating to a school before attending their child. Donald Trump's family. In 1998, real estate magnate Charles Kushner, a graduate of New York University, reportedly promised $ 2.5 million to Harvard before his son. Jared Kushner, who is now senior advisor to his father-in-law, President Trump, was admitted to the university. The Kushner episode was reported for the first time by a journalist Daniel Golden, who wrote the book "Price of Admission" on how the rich "buy" their children in the most prestigious academic institutions in the country. The Kushners have long denied l & # 39; allegation.

"College admissions systems, which favor candidates and legacy donors, are: legal and legal; more polished version of what has been exposed in the & lsqb; admissions & rsqb; scandal, "says Richard Kahlenberg, a member of the Century Foundation's Senior Foundation, which studies inequalities in higher education.

It is unclear to what extent the wealth and generosity of billionaires helped their children or grandchildren to receive letters of acceptance, but it is certainly a factor. There are many examples of billionaire children attending the same elite schools as their parents and even their grandparents. & nbsp; billionaire hedge fund Stephen Mandel has almost centenarian connections going back to his alma mater, Dartmouth College. His grandfather went there in the 1920s, his father in the 1950s. A graduate of Dartmouth in 1978, he chaired the board of directors and was co-chair of the $ 1.3 billion campaign for the company. 39, Dartmouth experience. He even named his investment company, Lone Pine Capital, after a pine tree that, according to legend, survived an 1887 lightning strike on the university campus. It is therefore not surprising that two of her three children went there. Silat Valley real estate magnate John Arrillaga Graduated from Stanford University in 1960. He then sent his daughter, graduate in 1992, followed by a gift of 100 million dollars. in 2006 and an additional promise of $ 151 million in 2013.

"College admissions systems, which favor candidates and donors, are the most [legal and] more polished version of what was exposed in the [admissions] scandal."

Real estate developer Rick Caruso had links of several decades the University of Southern California long before his children attended. When the scandal erupted on Tuesday, it was reported that Olivia Jade, whose father and mother were accused of corruption as part of the admission program, was on Caruso's yacht with Caruso's daughter, Gianna. , also a freshman at USC.

Hank Caruso, Rick's father and founder of Dollar Rent-A-Car, went to USC but retired to serve in the Navy during the Second World War. In 1980, Rick graduated with a degree in Commerce. The university and its four children attended or attend university and the name Caruso features on at least two buildings: the USC Caruso Catholic Center and the USC Tina and Rick Caruso Otolaryngology Department.

Rick CarusoEthan Pines AK

According to public documents, Caruso began making donations to USC in 1992 with a donation of $ 2,500. In 2006, he donated $ 1 million to the USC Catholic community and in 2015 he committed to $ 25 million. In 2018, he became the same year President member of the board of directors of the University of Southern California, he donated about $ 2 million. That same year, Gianna, her youngest son, started at the university. In total, the Caruso Foundation donated $ 15.8 million to the university and announced an additional contribution of $ 26 million. & nbsp;

In a statement to ForbesUSC says it "depends on generous donations from its donors for student support, but the admissions office does not consider family donations when considering a candidate." & Legacy, on the other hand, goes very far for the candidates. "We are proud to educate several generations of Trojans, and every year admissions for inheritance account for between 13% and 19% of each incoming class," said the spokesman.

Ray PerelmanNathaniel Welch / Redux

the Clan Perelman is deeply connected to the University of Pennsylvania, both in staffing and enrollment. The late investor Ray Perelman donated at least $ 250 million to the university, including $ 225 million to the faculty of medicine in 2011. Many of Ray's children and grandchildren went on to study at Penn, including his son. Ron Perelmanvalued at $ 9.1 billion, for whom the school's newly opened political and economic science building is called.

The late Jon Huntsman, one of the oldest benefactors of the Wharton School of Business, is another former billionaire Penn. Wharton Huntsman Hall is one of Penn's largest campus buildings, and the International Studies & amp; The double degree program in business administration is called Huntsman, which has donated more than $ 10 million in 1997 to launch the program. His son Jon Jr. (the current US Ambassador to Russia) graduated from Penn's College of Arts and Sciences in 1987 and his son David from the same college in 1992. Another son, Paul, completed the Wharton Graduate Program in 2000. Huntsman Sr. was a member of the Wharton Supervisory Board. In addition to three of her nine children, two in-laws and at least three grandchildren attended Penn.

Schools like Harvard, which boasts former billionaires as the former CEO of Microsoft Steve Ballmer and co-founder Airbnb Nathan Blecharczyk, admit that former students and children of wealthy donors, among others, have an edge over the rest of the population. According to a Harvard statement, the athletes recruited, the children of Harvard graduates, the candidates on the list of the Dean or Director (which may include candidates whose parents are donors) and the children of professors and staff represent 29% admitted students.

"Schools need money, but they may not need your money […] They do not sell seats to the highest bidder. "

But to what extent donations – or the potential for donations – make it more likely that a student will be admitted? According to Mandee Heller Adler, who founded the International College Counselors and who consulted billionaires and millionaires on how their kids can enter the university, wealth is one of many factors even if he is influential.

"It's a big component. A less competitive bid can become an "acceptance" if it comes from a target group, and donors are part of it, "says Adler.

However, not all standards are rejected by windows when a school reads a request from a billionaire's child. Adler says she has worked with wealthy families whose children were rejected because of low test scores or low grades. She disputes the claim that wealthy families can buy their children in elite schools.

"Schools need money, but they may not need it your money, "she says. "They do not sell seats to the highest bidder."

In October 2018, Harvard defended itself in federal court against accusations that the university would discriminate against American candidates of Asian origin by claiming that the institution used racial quotas to create a diverse class. the trial, which was filed in 2014 by Students for Fair Admissions, has helped to better understand the often elusive secrets about how Harvard decides who will enter or not. (A decision is expected this summer.)

One of the most revealing aspects of the case concerns e-mails exchanged between David Ellwood, Director of the Harvard Kennedy School of Government and Dean of Admissions William Fitzsimmons.

In a 2013 emailEllwood wrote to Fitzsimmons that he had "done wonders" by admitting a student – whose name was redacted – because his parents "were already engaged in a building". Two other students were admitted to Harvard. had "committed significant funds for scholarships before you decide".

Emails clearly show a quid pro quo between Harvard and legacy candidates and mega-donors.

"The pure and simple corruption we have seen is reflected in the indictments of Tuesday & rsqb; is a harsher version of what happens every day in selective colleges, "says Kahlenberg, of the Century Foundation, who also served as an expert witness at the 2018 trial." Universities use the fact that " they have a scarce resource, of value that people want, to get donors to donate money to access this resource. "

Samantha Sharf contributed to the writing of this article.

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The

Wexner, the billionaire who controls Victoria's Secret, did not go to Harvard. He graduated from Ohio State University in 1959. But he started donating to Harvard in 1989 and the nation first university of $ 1.5 to $ 2.1 million a year from 2003 to 2012.

In 2013, The Wexner Charitable Foundation has significantly increased its donation by donating $ 8.5 million to the university as part of a long-standing building project. It was also the year when the first of his four children started as a freshman at Harvard.

The donation continued. His foundation awarded $ 26 million to Harvard in 2014, $ 7 million in 2015 and $ 14.5 million in 2016. The other three Wexner children enrolled in the university in 2014, 2015, and 2017. His children are not in rest – one is a second Ivy League rowing team, another is pursuing graduate studies in education (at Harvard) and another is attending the Kennedy School of Government at the university.

The WexnerStephen Webster AK

But in the ultra-competitive environment of the Ivy League, where even the most qualified students can be rejected, bearing the surname "Wexner" at the university where your father has regularly donated. surely not bad.

Wexner's cash transfers embody common billionaire behavior. American billionaires do not have to break the law to help their children enter the best universities. They can and often use their inheritance and their money. And they have been doing it for generations.

A family member of President Donald Trump may be one of the best-known examples of billionaire families who donated to a school before going to school. In 1998, real estate magnate Charles Kushner, a graduate of the University of New York, reportedly announced a $ 2.5 million contribution to Harvard before his son Jared Kushner, currently senior adviser to his Father-in-law, President Trump, is not admitted to the university. The episode of Kushner was first reported by journalist Daniel Golden, who wrote the book "Price of Admission" on the price to pay for the rich "buy" their children in the most prestigious academic institutions of the country. The Kushners have long denied this allegation.

"College admissions systems, which favor candidates and donors, are the most [legal and] more polished version of what was exposed in the [admissions] scandal, "says Richard Kahlenberg, a member of the Century Foundation's Senior Foundation, which studies inequalities in higher education.

It is unclear to what extent the wealth and generosity of billionaires helped their children or grandchildren to receive letters of acceptance, but it is certainly a factor. There are many examples of billionaire children attending the same elite schools as their parents and even their grandparents. Hedge fund billionaire Stephen Mandel has almost 100-year-old connections to his alma mater, Dartmouth College. His grandfather went there in the 1920s, his father in the 1950s. A graduate of Dartmouth in 1978, he chaired the board of directors and was co-chair of the $ 1.3 billion campaign for the company. 39, Dartmouth experience. He even named his investment company, Lone Pine Capital, after a pine tree that, according to legend, survived an 1887 lightning strike on the university campus. It is therefore not surprising that two of her three children went there. Silicon Valley real estate mogul, John Arrillaga, graduated from Stanford University in 1960. He then sent his daughter, graduate of 1992, followed by a gift from $ 100 million in 2006 and an additional promise of $ 151 million in 2013.

"College admissions systems, which favor candidates and donors, are the most [legal and] more polished version of what was exposed in the [admissions] scandal."

Real estate developer Rick Caruso has had links with the University of Southern California for decades, long before his children attended. When the scandal erupted on Tuesday, it was reported that Olivia Jade, whose father and mother were accused of corruption as part of the admission program, was on Caruso's yacht with Caruso's daughter, Gianna. , also a freshman at USC.

Hank Caruso, Rick's father and founder of Dollar Rent-A-Car, went to USC but retired to serve in the Navy during the Second World War. In 1980, Rick graduated with a degree in Commerce. The university and its four children attended or attend university and the name Caruso features on at least two buildings: the USC Caruso Catholic Center and the USC Tina and Rick Caruso Otolaryngology Department.

Rick CarusoEthan Pines AK

According to public documents, Caruso began making donations to USC in 1992 with a donation of $ 2,500. In 2006, he donated $ 1 million to the USC Catholic community and in 2015 he pledged $ 25 million. In 2018, the same year, he became chairman of the board of directors of the University of Southern California. He gave about $ 2 million. The same year, Gianna, his youngest son, entered the university. In total, the Caruso Foundation donated $ 15.8 million to the university and announced an additional contribution of $ 26 million.

In a statement to ForbesUSC says it "depends on generous donations from its donors for student support, but the Admissions Office does not consider family donations when considering a candidate." In contrast, the legacy goes a long way for the candidates. "We are proud to educate several generations of Trojans, and every year admissions for inheritance account for between 13% and 19% of each incoming class," said the spokesman.

Ray PerelmanNathaniel Welch / Redux

The Perelman clan is deeply linked to the University of Pennsylvania, both in staffing and enrollment. The late investor Ray Perelman donated at least $ 250 million to the university, including $ 225 million to the faculty of medicine in 2011. Many of Ray's children and grandchildren then attended Penn, including his son Ron Perelman, of a current value of $ 9.1 billion. the recently opened political and economic science building of the school bears his name.

The late Jon Huntsman, one of the oldest benefactors of the Wharton School of Business, is another former billionaire Penn. The Huntsman Hall in Wharton is one of the largest buildings on Penn's campus. The double degree program in international studies and business is called Huntsman, which gave more than $ 10 million in 1997 to launch the program. His son Jon Jr. (the current US Ambassador to Russia) graduated from Penn's College of Arts and Sciences in 1987 and his son David from the same college in 1992. Another son, Paul, completed the Wharton Graduate Program in 2000. Huntsman Sr. was a member of the Wharton Supervisory Board. In addition to three of her nine children, two in-laws and at least three grandchildren attended Penn.

Schools like Harvard, which brings together former billionaires, such as former Microsoft president, Steve Ballmer, and Airbnb co-founder, Nathan Blecharczyk, admit that budding students and children of wealthy donors, among others, have an advantage over the rest of the population. According to a Harvard statement, the athletes recruited, the children of Harvard graduates, the candidates on the list of the Dean or Director (which may include candidates whose parents are donors) and the children of professors and staff represent 29% admitted students.

"Schools need money, but they may not need your money […] They do not sell seats to the highest bidder. "

But to what extent donations – or the potential for donations – make it more likely that a student will be admitted? According to Mandee Heller Adler, who founded the International College Counselors and who consulted billionaires and millionaires on how their kids can enter the university, wealth is one of many factors even if he is influential.

"It's a big component. A less competitive bid can become an "acceptance" if it comes from a target group, and donors are part of it, "says Adler.

However, not all standards are rejected by windows when a school reads a request from a billionaire's child. Adler says she has worked with wealthy families whose children were rejected because of low test scores or low grades. She disputes the claim that wealthy families can buy their children in elite schools.

"Schools need money, but they may not need it your money, "she says. "They do not sell seats to the highest bidder."

In October 2018, Harvard defended itself in federal court against accusations that the university would discriminate against American candidates of Asian origin by claiming that the institution used racial quotas to create a diverse class. The lawsuit, which was filed in 2014 by Students for Fair Admissions, a nonprofit, has helped to better understand the often elusive secrets of how Harvard decides who will come in and who is not. (A decision is expected this summer.)

One of the most revealing aspects of the case concerns e-mails exchanged between David Ellwood, Director of the Harvard Kennedy School of Government and Dean of Admissions William Fitzsimmons.

In a 2013 email titled "My Hero", Ellwood wrote to Fitzsimmons that he had "done wonders" in admitting a student – whose name had been redacted – because his parents "had already been engaged in a building ". Students admitted to Harvard had "committed large sums for scholarships before your decision was made."

Emails clearly show a quid pro quo between Harvard and legacy candidates and mega-donors.

"The pure and simple corruption we have seen emerge from the indictments [on Tuesday] is a harsher version of what happens every day in selective colleges, "says Kahlenberg, of the Century Foundation, who also served as an expert witness at the 2018 trial." Universities use the fact that " they have a scarce resource, of value that people want, to get donors to donate money to access this resource. "

Samantha Sharf contributed to the writing of this article.


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