Koch Giving

Charles Koch has been in the news recently for trying to fund two professorships for Florida State’s economics department. $1.5 million was pledged from the Charles B. Koch Charitable Foundation to the school. Koch wanted to be involved in the process however. In reviewing potential candidates for the professorships Koch rejected nearly 60% of the faculty’s recommendations. One thing people really don’t realize is that deans and any department chair’s real job is fundraising. Often times a dean of any school has to figure out how to get donations from individual donors, alumni, and corporations. Clearly, this is no easy task and requires connections, charisma, and knowing how to work parties.

What I don’t quite understand is why people are upset about how people to choose to use their money. People don’t seem to realize that even people that donate money are to some degree self interested. These people want to see the money go for a good cause, something that can benefit society, or whatever reason they can rationalize. This Koch case would make a great ethics case for business school. One thing to keep in mind is that these schools never have to accept the money. There are cases were schools do reject money even when billionaire Alfred Mann wanted to try to give $162 million to fund a bioengineering institute to UCLA they declined because he wanted too much control. The point is colleges never have to accept the money if they choose not to. Colleges also have reputations to maintain. If a college is known for accepting money to let students in, allow wealthy donors to cherry pick professors, or to have control of athletic teams it will be known.

Koch’s net worth in 2010 was $22 billion. He and his brother have given away more than $196 million already. The man should be free to choose what he does with his money or what organizations, charities, or schools he gives it to. One large benefactor of Koch’s charitable giving has been George Mason University. Over the past 20 years Koch has given $30 million to George Mason University. The school established the Mercatus Center which is a free market think tank. George Mason now has a top rate economics department.

I think even if someone wants to donate money to liberal causes they should be allowed to do so. I think it’s interesting that people believe they should decide how other people use and spend their money. Donation is voluntary and is a two way street.