Massachusetts Institute of Technology and Jacobs University Bremen
by Howard L. Resnikoff
Chairman, Jacobs University Foundation of America
Chairman, Jacobs University Foundation of America
Today, MIT is a world famous private university with the 6th largest endowment ($11 billion) in the United States. It wasn’t always so.
In 1859 William Barton Rogers submitted a proposal to the legislature of the State of Massachusetts for a new private institution of higher learning that would be housed on publicly owned lands in Boston. Two years later, on April 10, 1861 the governor of Massachusetts signed a charter that granted land for a new private institution of higher education, the “Massachusetts Institute of Technology and Boston Society of Natural History”. Two days later the American Civil War began.
Because of the war, Rogers, who had been appointed President, had great difficulty raising funds for the new institution. Nevertheless, after the war ended, in May, 1865, MIT’s first classes were held in rented space in Boston, and in 1866 its first building was built. The war was not the only reason it was difficult to raise funds. Most people failed to see a need for, or to understand, the new style of education that MIT represented.
MIT survived for eight years, in a constant state of financial crisis. Then, the Panic of 1873, a severe economic collapse, hit North America and Europe. The subsequent Long Depression lasted 6 years. Enrollments at MIT decreased sharply after 1875 and the financial situation, never easy, became grim. By 1878 – its thirteenth year – MIT had abolished three professorships; reduced faculty salaries; and the Board of Trustees considered closing the institution. Under these circumstances, the second president retired. The trustees were unable to find a successor. They asked Rogers, who was then 75 years of age, to return as interim President.
President Rogers succeeded in finding a young but distinguished successor who assumed the Presidency in 1881 – the 16th year of operation. One reason it was difficult for MIT to build a stable financial foundation in this period was the existence of the Lawrence Scientific School at Harvard – the oldest university in the United States – and potential benefactors were at best indifferent and often hostile to the young institution.
The new President and the Trustees lobbied the Massachusetts Legislature for a $200,000 grant (More than $4 million today). Although MIT was private, they successfully argued that these public monies would aid the industrial development of Massachusetts. The Legislature approved a grant of $300,000 to be paid over two years. In the following years, the State continued to provide grants amounting to more than $1.6 million (Probably more than $40 million today) until the practice was ended in 1921.
Between 1881 and 1897, enrollment quadrupled from 302 to 1,198 students, faculty appointments grew from 38 to 156, and the endowment grew from $137,000 (About $2.8 million today) to $1,798,000 (About $43 million).
One hundred and forty years after the proposal for founding MIT was submitted to the State of
In 1859 William Barton Rogers submitted a proposal to the legislature of the State of Massachusetts for a new private institution of higher learning that would be housed on publicly owned lands in Boston. Two years later, on April 10, 1861 the governor of Massachusetts signed a charter that granted land for a new private institution of higher education, the “Massachusetts Institute of Technology and Boston Society of Natural History”. Two days later the American Civil War began.
Because of the war, Rogers, who had been appointed President, had great difficulty raising funds for the new institution. Nevertheless, after the war ended, in May, 1865, MIT’s first classes were held in rented space in Boston, and in 1866 its first building was built. The war was not the only reason it was difficult to raise funds. Most people failed to see a need for, or to understand, the new style of education that MIT represented.
MIT survived for eight years, in a constant state of financial crisis. Then, the Panic of 1873, a severe economic collapse, hit North America and Europe. The subsequent Long Depression lasted 6 years. Enrollments at MIT decreased sharply after 1875 and the financial situation, never easy, became grim. By 1878 – its thirteenth year – MIT had abolished three professorships; reduced faculty salaries; and the Board of Trustees considered closing the institution. Under these circumstances, the second president retired. The trustees were unable to find a successor. They asked Rogers, who was then 75 years of age, to return as interim President.
President Rogers succeeded in finding a young but distinguished successor who assumed the Presidency in 1881 – the 16th year of operation. One reason it was difficult for MIT to build a stable financial foundation in this period was the existence of the Lawrence Scientific School at Harvard – the oldest university in the United States – and potential benefactors were at best indifferent and often hostile to the young institution.
The new President and the Trustees lobbied the Massachusetts Legislature for a $200,000 grant (More than $4 million today). Although MIT was private, they successfully argued that these public monies would aid the industrial development of Massachusetts. The Legislature approved a grant of $300,000 to be paid over two years. In the following years, the State continued to provide grants amounting to more than $1.6 million (Probably more than $40 million today) until the practice was ended in 1921.
Between 1881 and 1897, enrollment quadrupled from 302 to 1,198 students, faculty appointments grew from 38 to 156, and the endowment grew from $137,000 (About $2.8 million today) to $1,798,000 (About $43 million).
One hundred and forty years after the proposal for founding MIT was submitted to the State of
Massachusetts, a plan was proposed to the City-State of Bremen to create a private university of higher learning with a style of education new to Germany. The City-State approved the plan and contributed seed monies, and the new university obtained the land and buildings of a decommissioned military base for use as a campus.
Two years later, in September 2001, Jacobs University – then called International University Bremen – opened, just days after the 9/11 attack in America. The e ects of 9/11 created great uncertainty that lasted for many years in Europe as well as in the United States.
The uncertainty made it difficult to get the attention of potential benefactors. It was a difficult time to be raising money, no matter how promising the hopes for the new university might be. In America, which has a tradition of educational and international philanthropy, all eyes were turned inward and wallets were closed.
In Bremen, which had no tradition of private philanthropy for education, many potential benefactors and the general public were hostile to the new institution which they saw as elitist and in potential competition with the older, established, University of Bremen. Although the people of Bremen relied on and rewarded elitism in their football team, they objected to it in education. Others failed to see the need for the new style of education that Jacobs represented, or saw its internationalism as a threat.
The new university became the first private university in Germany to be accredited and, in 2004, graduated its first class. During this initial period of academic success, e orts to raise endowment funds were less successful. The University developed for five years in a constant state of financial crisis. Then, in 2006, it received what was at the time the largest donation for education in European history when the Jacobs family committed €200 million. To honor their confidence in its future, the University changed its name to Jacobs University Bremen.
Almost immediately, in 2007, a severe global economic collapse hit North America and Europe. The subsequent Long, or Great, Recession had already lasted 6 years. The financial situation of the University, never easy, was grim.
The President and the Trustees successfully lobbied the City-State for supplemental monies based on the tax revenues brought in by its activities. Although Jacobs was private, it successfully argued that the requested public monies would aid the industrial development of the City-State. The City-State approved a grant against a background of political controversy and continued to provide grants with the understanding that the practice would soon be ended.
By 2014 – its thirteenth year – Jacobs had secured its budget through 2017 but was still struggling to raise sufficient funds to cover the impending budget shortfall after that time. Under these circumstances, the third president, who had served less than one year, left the university.
In the meantime, the growing number of alumni of Jacobs University have gone on to prestigious graduate schools and to significant positions in corporations; the faculty have succeeded in winning an ever-growing number of research contracts and grants; and students from more than 100 countries rate Jacobs University highly and testify to the effectiveness of its educational programs.
In similar circumstances, the MIT Trustees were unable to find a successor and asked President Rogers, who was then 75 years of age, to return as interim President. It remains to be seen how the Jacobs Trustees will proceed. Although the MIT Trustees considered closing the institution, that turned out to have been the wrong path to consider.
Building a great university is not the work of one year, or of one decade. Building a great university is not for the faint of heart. Success neither comes, nor can it be judged, in the heat of the moment.
Two years later, in September 2001, Jacobs University – then called International University Bremen – opened, just days after the 9/11 attack in America. The e ects of 9/11 created great uncertainty that lasted for many years in Europe as well as in the United States.
The uncertainty made it difficult to get the attention of potential benefactors. It was a difficult time to be raising money, no matter how promising the hopes for the new university might be. In America, which has a tradition of educational and international philanthropy, all eyes were turned inward and wallets were closed.
In Bremen, which had no tradition of private philanthropy for education, many potential benefactors and the general public were hostile to the new institution which they saw as elitist and in potential competition with the older, established, University of Bremen. Although the people of Bremen relied on and rewarded elitism in their football team, they objected to it in education. Others failed to see the need for the new style of education that Jacobs represented, or saw its internationalism as a threat.
The new university became the first private university in Germany to be accredited and, in 2004, graduated its first class. During this initial period of academic success, e orts to raise endowment funds were less successful. The University developed for five years in a constant state of financial crisis. Then, in 2006, it received what was at the time the largest donation for education in European history when the Jacobs family committed €200 million. To honor their confidence in its future, the University changed its name to Jacobs University Bremen.
Almost immediately, in 2007, a severe global economic collapse hit North America and Europe. The subsequent Long, or Great, Recession had already lasted 6 years. The financial situation of the University, never easy, was grim.
The President and the Trustees successfully lobbied the City-State for supplemental monies based on the tax revenues brought in by its activities. Although Jacobs was private, it successfully argued that the requested public monies would aid the industrial development of the City-State. The City-State approved a grant against a background of political controversy and continued to provide grants with the understanding that the practice would soon be ended.
By 2014 – its thirteenth year – Jacobs had secured its budget through 2017 but was still struggling to raise sufficient funds to cover the impending budget shortfall after that time. Under these circumstances, the third president, who had served less than one year, left the university.
In the meantime, the growing number of alumni of Jacobs University have gone on to prestigious graduate schools and to significant positions in corporations; the faculty have succeeded in winning an ever-growing number of research contracts and grants; and students from more than 100 countries rate Jacobs University highly and testify to the effectiveness of its educational programs.
In similar circumstances, the MIT Trustees were unable to find a successor and asked President Rogers, who was then 75 years of age, to return as interim President. It remains to be seen how the Jacobs Trustees will proceed. Although the MIT Trustees considered closing the institution, that turned out to have been the wrong path to consider.
Building a great university is not the work of one year, or of one decade. Building a great university is not for the faint of heart. Success neither comes, nor can it be judged, in the heat of the moment.
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