12/15/06

Billionaire's Donation Saves German University

Klaus J. Jacobs, a German-born billionaire who lives in England and studied at Stanford, came back to his hometown here the other day to announce that he was donating more than $250 million to the International University Bremen.

The gift is the biggest private donation ever made to a German university - so big, in fact, that its only real parallel is the kind of mega-philanthropy that periodically swells the coffers of American universities.

That is precisely the point for Mr. Jacobs and for the newly appointed president of the university. "I hope that this sets a precedent," Mr. Jacobs, 69, said. "There is a lot of wealth in private and corporate hands in Germany. It certainly would be desirable to see more of it going to institutions."

Jacobs said he hoped his gesture would encourage more large-scale philanthropy in a land where it is largely unknown.

Private giving to German universities is limited by several factors, ranging from the lack of a philanthropic tradition to rules that limit the amount of tax-free donations. The biggest hurdle, however, is the state, which has historically been the main financier of higher education.

[Excerpt of an article by Mark Landler, The New York Times]

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