The law of diminishing returns, a simple but powerful concept that is widely known by everyone with a rudimentary understanding of economics, is often flagrantly disregarded by many -- including the richest among us. The law states that there comes a time when additional infusion of a factor of production no longer leads to an increase in productivity. In fact, an increase in a factor of production may lead to negative productivity. Thus, bigger is not always better, and more is not always wiser. This simple but important economic concept is generally observed religiously by investors who wish to maximize their returns. Investors search ardently for opportunities that will bring them the most returns and diversify their investments by redirecting funds to other ventures promising better yields. Although governments often indulge in endless and mindless expenditures on projects of dubious value, no business becomes successful by violating the principle of diminishing returns. Why, then, then the writer asks, do private donors -- some of them entrepreneurs who should know better -- engage in apparent mindless donations of their money? Michael discusses donors who in the past 10 years have parted with vast sums of money in donations to colleges and universities already endowed with billions of dollars in endowment. "Donations to mega-rich universities do not," states the writer, "directly improve the academic experience of their professors and students, or result in any qualitative improvement in student learning." However, there are institutions where noticeable changes can be brought about by small donations -- where classrooms can be upgraded, libraries renovated and expanded, and the burden of cost on students alleviated. Making a concrete difference in the lives of students and faculty members, Michael advocates, should be the basis for giving to higher education.