In today's metaphyical lesson, we learn that money can be used to purchase services.
Yes, but you should not be able to purchase a seat at Harvard for $1 million and then claim it as a charitable contribution on your tax return. The receipts charities give for donations state that no services were rendered in return. Universities that accept donations, give such receipts, and factor donations into admissions decisions are committing tax fraud, as are the "donors".
Have just discussed this point with someone familiar with it.
It's more subtle than giving a million bucks in exchange for the admission. If my source is correct, you're donating the money because you think College X is so swell. This is totally irrelevant to the fact that Junior applied or got wait-listed, and anyway, even if it was, there's no guarantee that Junior will get in. It's a charitable donation, after all. Hello, plausible deniability.
Also, as for the alum children (and friends of alums) admissions, my understanding is that admissions are heavily influenced by parental schmoozing. For example, Mummy/Daddy and the admissions people belong to the same club and socialize occasionally. Daddy mentions that Junior applied to College X and that he really thinks
the world of it. And you love your alma mater so much, you're thinking of helping out with "development" efforts this year. But if you do, there's no guarantee that Junior will get in because of your actions!
Meh.
