November 2, 2025, By Dean Hoke — When Sweet Briar College’s trustees voted to close in 2015, they framed the decision as a financial necessity. Alumnae mounted an extraordinary campaign—raising $28.5 million in 110 days—and, through a state-brokered settlement, the college reopened under new governance. By 2023, donors had contributed well over $133 million since … Continue reading "From Silent Stakeholders to Strategic Partners: Donor Engagement in College Mergers"
November 2, 2025, By Dean Hoke — When Sweet Briar College’s trustees voted to close in 2015, they framed the decision as a financial necessity. Alumnae mounted an extraordinary campaign—raising $28.5 million in 110 days—and, through a state-brokered settlement, the college reopened under new governance. By 2023, donors had contributed well over $133 million since the crisis. What looked like an inevitable failure became one of higher education’s most remarkable turnarounds.
Sweet Briar is not only a story of crisis response; it exposes a recurring miscalculation in today’s merger conversations: the assumption that boardroom consensus equals donor legitimacy. Trustees speak for donors in a fiduciary sense—they hold legal responsibility for institutional assets—but not in the communal sense that captures sentiment, legacy, and trust. When colleges announce merger talks, headlines dwell on enrollment curves and debt ratios. Yet behind every deal stands a quieter, decisive constituency: major donors, family foundations, and planned-giving benefactors whose confidence (or loss of it) can determine whether the combined institution thrives—or limps forward under the weight of broken relationships.
This article reframes mergers as philanthropic integration projects. The legal mechanics matter, but durable success is won in the design phase: early engagement with philanthropic stakeholders, explicit safeguards for identity and donor intent, transparent transition planning, and a mission-first case that invites continued—and new—investment. When leaders bring donors and alumni into the architecture of the merger rather than the press release, they convert anxiety into commitment and preserve the institutional DNA that constituents care about most.
We’ll see this principle in contrasting cases: mission-advancing acquisitions that attracted significant philanthropic support, integrations that prioritized identity and donor intent from the outset, and lessons from failed or contested processes. The throughline is simple: treat philanthropy as a core workstream—not an afterthought—and the odds of a credible, sustainable merger rise dramatically.
Why Donor Engagement Matters More Than Ever
The stakes have never been higher. Survey data from Ruffalo Noel Levitz’s 2025 National Alumni Survey, which surveyed more than 50,000 alumni, reveals that donor relationships with higher education are already strained. While 81% of alumni report that being philanthropic is important to them personally and 77% make charitable donations, their connection to their alma mater has weakened dramatically. Only 31% of alumni who donate to any charity gave to their alma mater last year, dropping to just 19% among Millennials and 10% among Gen Z graduates.
Even more troubling: 59% of alumni who never donate to their alma mater actively support other causes, as do 83% of lapsed donors. They have not stopped giving—they have simply redirected their philanthropy elsewhere. This suggests that alumni disengagement reflects institutional failure rather than generational selfishness.
Satisfaction drives everything. Alumni who report being ‘very satisfied’ with their student experience are 18 times more likely to donate than neutral respondents and 73 times more likely than dissatisfied graduates. Yet only 42% of Gen Z alumni report feeling ‘very satisfied’ with their experience, compared to 72% of Silent Generation graduates.
Mergers test already-fragile relationships. When institutions announce consolidation, donors who felt lukewarm about their undergraduate experience see confirmation that their alma mater is failing. A merger framed solely as a financial necessity will not inspire them. But a merger presented as advancing mission-driven impact—expanding access, strengthening programs that address social challenges, or preserving an educational model under threat—can mobilize support from the very alumni who have drifted away.
What History Already Taught Us (and We Often Forget)
As Millett (1976) noted, successful integrations often ‘show structure, not just sentiment’—for example, Case Western Reserve kept a distinct Case Institute identity, and Carnegie Mellon created a Carnegie Institute of Engineering and a Mellon Institute of Science to carry legacies forward.
A half-century ago, John D. Millett’s 1976 analysis of U.S. college mergers examined a range of cases—from research institutes to liberal arts colleges—and distilled lessons that remain strikingly current. Four observations deserve renewed attention today:
1. Endowments transfer; relationships do not. In many mergers, endowments and restricted funds move to successor institutions through standard legal pathways. The mechanics are manageable. The harder work is relational: ensuring donors can see how their original intent will be honored in the new configuration, and that the program or ethos they loved will not be erased.
2. Alumni skepticism is predictable—and manageable. Leaders should not assume alumni approval, especially when the smaller institution is absorbed. Visible steps to cultivate and retain legacy alumni—keeping familiar staff contacts for a transitional period, acknowledging a distinct identity, and offering tangible ways to shape the merged future—go a long way.
3. Governance approval is not donor legitimacy. Even when boards vote, state bodies concur, and presidents sign, philanthropic legitimacy remains a separate test. Communities expect to be consulted; they often oppose mergers if they learn about them too late. Participation must be planned early, not added later.
4. Language and structure matter more than sentiment. Labels and explanations—federation versus absorption, mission expansion versus rescue—shape how alumni and donors interpret the outcome. Leaders who explain clear educational benefits and who visibly protect identity through formal structures earn trust faster.
Historical Examples: Structure, Not Just Sentiment
After the Case Institute of Technology and Western Reserve University merger, the successor Case Western Reserve University continued the designation of Case Institute of Technology as an organizational component. At Carnegie Mellon University, leaders created a Carnegie Institute of Engineering and a Mellon Institute of Science—formal structures that carried legacy identities forward within the new entity.
The Bellarmine-Ursuline (Louisville) merger (1968-1971) offers another instructive example. The combined institution briefly used the Bellarmine-Ursuline name before reverting to Bellarmine College in 1971, but Bellarmine has continued to honor Ursuline identity through durable structures—explicitly including Ursuline alumnae in alumni awards and honors and recognizing the Ursuline legacy through commemorations and alumni programming. These are structural signals that preserve identity even when the combined name does not persist.
Millett also notes that successor institutions often made special effort to cultivate and retain alumni of the absorbed college, including keeping an alumni-relations officer from the legacy institution and providing a special alumni designation or status—practical ways to keep traditions and community intact during transition.
Three Models Leaders Use—and Which One Works
Crisis-Reactive: What Not to Do
Planning is done privately, the announcement is abrupt, and donors are asked to accept a fait accompli. Mills College’s merger with Northeastern University proceeded despite alumni resistance, prompting legal challenges over donor intent. The Alumnae Association spent hundreds of thousands in legal fees opposing the merger, and a class action lawsuit resulted in a $1.25 million settlement. The litigation divided alumnae and consumed resources that could have been invested in the merged institution’s success.
Even when the legal mechanics are sound, the community verdict is that identity has been erased. The result: backlash, donor-intent disputes, and years of costly trust repair.
Compliance-Only: Necessary but Insufficient
Teams carefully inventory restricted funds, ensure transfers align with donor intent, and communicate the basics. This prevents disasters but rarely generates enthusiasm or new investment. Survey data reveals that 70% of alumni need to believe their gift amount matters, and 66% rate the ability to see how their gift is used as critical. When a college merges, donors worry their legacy has been erased—regardless of legal assurances that funds will be protected.
The compliance model maintains existing donors but does not mobilize new support for the merged institution’s expanded mission. The message is ‘We will comply,’ not ‘Here is a better future you can help build.’
Strategic Partnership: The Target State
Donors and foundations are treated as co-creators from Day 0. Leaders conduct quiet briefings with major benefactors pre-announcement, frame the merger as mission expansion, and embed structural commitments to legacy preservation. This model doesn’t eliminate hard feelings, but it channels energy toward shared outcomes.
Delaware State University–Wesley College (2020–21). DSU—an HBCU—acquired Wesley and framed the move as mission advancement, launching the Wesley College of Health & Behavioral Sciences to expand pathways in nursing and allied health for underserved students. Financing combined philanthropy and prudence: a $20M unrestricted gift from MacKenzie Scott (with a portion—reported as roughly one-third of the $15M total—applied to transition costs) and a $1M Longwood Foundation grant for the acquisition. The case shows how a mission-first narrative can catalyze major-donor and foundation support.
By tying dollars to a new health‑workforce pipeline—rather than balance‑sheet triage—leaders converted donor anxiety into visible, restricted impact.
Ursuline College–Gannon University (ongoing). From the outset, both institutions engaged stakeholders publicly and affirmed philanthropy principles: “Honoring donor intent is important to Gannon University,” and donors will be able to designate gifts to the Pepper Pike campus. Ursuline will retain its identity as the Ursuline College Campus of Gannon University after the transition, and the Ursuline Sisters of Cleveland have voiced support for the merger—signals aimed at preserving community trust and legacy while the integration proceeds through 2026. These commitments, paired with the HLC’s Change-of-Control approval, frame the merger as continuity-minded rather than absorptive.
University of Tennessee Southern (formerly Martin Methodist College).
University of Tennessee Southern (formerly Martin Methodist College)
When Martin Methodist joined the University of Tennessee System in 2021, leaders prioritized transparent, compassionate communication—“a liminal space” requiring a strong plan, as President Mark La Branche put it. They also set aside portions of the legacy endowment (via the Martin Methodist College Foundation) to protect signature programs, showing that integration need not erase institutional identity.
Public commitments to donor intent and the campus naming convention did early legitimacy work that legal filings can’t.
Engaging the Acquiring Institution’s Donors
When a stronger institution absorbs a struggling one, leaders often assume donor concerns belong primarily to the acquired institution. This is a strategic error. The acquiring institution’s donors also have a stake in the outcome—and their continued support is essential to merger success.
Major donors to the acquiring institution may question why resources should be directed toward absorbing another college. They may worry that the acquired institution’s struggles will tarnish their alma mater’s reputation, or that merger costs will compete with planned campus improvements. These concerns are legitimate and require proactive engagement.
Frame the Merger as a Strategic Opportunity
The narrative for acquiring institution donors must emphasize strategic opportunity rather than charitable rescue. Several frames can be effective:
Geographic expansion: The merger creates a presence in a new market, expanding the institution’s reach and visibility.
Program complementarity: The acquired institution brings academic strengths that fill gaps in the acquiring institution’s portfolio.
Mission advancement: The merger expands capacity to serve students and fulfill the educational mission on a greater scale.
Competitive positioning: In an era of consolidation, the merger strengthens the institution’s competitive position and long-term sustainability.
Rather than waiting for resistance to emerge, acquiring institution leaders should brief major donors before public announcement. These confidential conversations acknowledge donors’ legitimate interest in institutional strategy, allow leaders to address concerns directly, and create opportunities for donors to become merger advocates.
Legal clarity: When restricted funds cannot be used as originally intended post‑merger, pursue a cy‑près modification early—advancement and counsel should partner on donor communication before any filing to preserve trust.
You can brief a small set of major donors pre‑announcement under strict NDAs without privileging them over faculty governance or regulators. Use a defined rubric for who is briefed (e.g., top 10% of lifetime commitments and active pledgors), disclose no nonpublic counterparties’ terms, and limit to mission rationale, identity safeguards, and timeline. Record each briefing in counsel’s log.
A Practical Playbook for Philanthropic Integration
Before Announcement (Day 0 Work)
Philanthropic due diligence—parallel to financial. Inventory endowed and restricted funds, bequests in the pipeline, and active foundation grants. Identify potential cy-près risks and draft stewardship language now. Treat this as a distinct workstream with advancement, finance, and counsel at the table from the start.
Quiet briefings with top donors and foundations on both sides. Under confidentiality, preview the rationale, surface donor-intent questions, and invite advice. Ask for early champions willing to speak publicly when the time comes.
Identity protections by design, not promise. Prepare a naming plan (e.g., ‘[Legacy] College at [Acquirer]’), preserve scholarship and reporting lines, and keep alumni-relations continuity for 12-24 months. Publish a short ‘Identity & Intent’ brief on day one that shows, in plain language, how donor purposes are carried forward.
At Announcement
Mission-driven case for support. Lead with the educational value only possible together: new academic pathways, access expansions, regional partnerships, research synergies. Avoid rescue framing. Make the case specific and concrete, tied to programs and outcomes donors care about.
Dedicated ‘Legacy to Impact’ funds with challenge matches. Create visible vehicles that convert anxiety into investment—restricted funds for scholarships, program launches, and student success tied to the integrated entity.
Community-benefit specificity. Spell out local benefits and stakeholder wins (clinics, teacher pipelines, innovation hubs). When people can ‘see’ the upside, they are likelier to invest in it.
First 12-24 Months
Quarterly transparency. Report enrollment in merged programs, first scholarship cohorts, renewed or new foundation grants, and capital milestones. Transparency reduces rumors and builds credibility.
Recognition symmetry. Offer parity for legacy and acquirer donors—naming walls, digital honor rolls, endowed-fund dashboards, and joint stewardship events.
Two-sided cultivation. Brief the acquirer’s major donors so they see strategic growth rather than a charitable drain. Ask two or three to seed a matching pool restricted to merger priorities; matches signal confidence and reduce perceived risk.
Measuring Success Beyond the Closing Date
Because reliable analytics on donor behavior in mergers are sparse, leaders should build their own lightweight evidence base. For each merger, track three years pre- and post-integration for: total private support; alumni participation (where available); number of $1M+ gifts; and the mix of restricted versus unrestricted giving.
Pair quantitative metrics with a qualitative log: Was identity preserved in naming? Did a Legacy Alumni structure exist? Were there donor-intent disputes? Did the acquirer launch dedicated legacy funds? How soon were KPIs reported?
Even a simple dashboard, updated quarterly, changes the conversation with trustees and donors. It shows momentum (or lack thereof), prompts targeted stewardship, and gives leaders permission to make mid-course corrections. It also validates the core claim of this article: philanthropy works best when it is built into planning, not bolted on after the fact.
Conclusion: From Stakeholders to Strategic Partners
The most fundamental error in merger planning is treating donors as communications targets rather than strategic partners. Donors are not merely sources of revenue to be managed; they are partners whose investments reflect belief in institutional mission and values.
Mergers that succeed treat donors, foundations, and alumni as planning inputs, not a downstream audience for PR. Millett’s 1976 study reminds us that while the legal mechanics of endowment transfers are straightforward, the human mechanics are not. Alumni skepticism is predictable; identity needs visible protection through formal structures, not just promises; language and framing carry unusual weight.
When leaders internalize those lessons—and create structures that honor donor intent, invite co-creation, and make the mission upside measurable—legacy becomes leverage rather than liability. Higher education’s financial pressures are real, but so is the reservoir of goodwill that donors and alumni hold for institutions that respect them.
The Sweet Briar alumnae who raised $133 million did not do so because they were told the college would comply with donor intent. They did so because they were invited to co-create a future worth investing in. That is the lesson for every merger: bring philanthropic stakeholders into the room early, build identity protections into the design, launch vehicles that convert anxiety into investment, and report steadily and transparently on what their support makes possible.
That is how two proud legacies become one stronger future—and how the ‘silent stakeholders’ find their voice in shaping it.
Sources (selected): institutional FAQs and press releases (Ursuline–Gannon; DSU–Wesley; UT Southern), RNL Alumni Giving Data 2025 (for participation/attitudes), and Millett, J.D. (1976) ED134105 on college mergers.
Dean Hoke is Managing Partner of Edu Alliance Group, a higher education consultancy. He formerly served as President/CEO of the American Association of University Administrators (AAUA). Dean has worked with higher education institutions worldwide. With decades of experience in higher education leadership, consulting, and institutional strategy, he brings a wealth of knowledge on colleges’ challenges and opportunities. Dean is the Executive Producer and co-host for the podcast series Small College America.
