The argument for corporations to make donations to colleges suggests that corporate support of education has failed to keep pace with the increase in educational costs, the level of corporate profits, and the rate of inflation. For example, corporate support of education in 1969 was at a level of 0.45 percent of corporate pre-tax net income. In 1976 it had declined to a level of 0.35 percent of corporate pre-tax net income even though giving in actual dollars increased in 1976 over 1975 by 22 percent. Giving had not kept pace with the increase in corporate profits. If corporations had been giving at the same percent of pre-tax net income in 1976 as in the late 1960s, their contribution to higher education would have amounted to roughly $700 million. The amount actually provided was about $550 million--21 percent less. Suggested goals for giving are based on the following calculations: (1) nationally, corporations devote 40 percent of their total contributions budget to higher education; (2) an annual goal might be based on the number of college-trained graduates hired during the year, or in 1976 about $1,100 per college graduate entering business employment; (3) in order to reach the same share of educational support as in the 1950s, corporations could increase giving 7 percent each year, plus the inflation factor; (4) 1 percent of profits before taxes is a goal that has been modified appropriately for certain situations, such as insurance, banking, and extractive industries; and (5) 2 percent of profits before taxes for all giving is a goal recommended by the Commission on Private Philanthropy and Public Needs. (CC)