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For sure, you're correct about that. On the other hand, when they surveyed donors to the Longhorn Foundation, 65% of them were unaware that they were not contributing to the academic side. If you've ever been to these shakedown soirees, a lot of time you have an administrator literally having checks stuffed into his coat pocket by people. Another part of the donations, by the way, is in capital campaigns for facilities. Schools say the money was raised privately. But the money raised is counted as contribution revenue while the school itself bonds out the construction of facilities. Neat sleight of hand. In the Daily Texan, one of economists down there broke down all components of the athletic budget. It was very revealing.
Almost all my contact with my undergraduate school is non-athletics related--travel groups, shows, events, lectures, etc.
That seems pretty specific to UT. I know the UConn foundation is not a solely athletic fundraising department. To your last point, I'm sure many different people have different reasons for having connections to their alma mater, but athletics is a big one for a lot of people. And at least in UConn's case, it is a big draw for students. Myself and a bunch of my college friends all got into significantly better academic schools and were drawn here by the athletics program. Again, it's not that way for everyone, but for a pretty sizeable number.