This statement explains the need for private financial support of state colleges and universities, and suggests that such support makes the difference between adequacy and excellence in higher education. Private support makes available scholarships and loans, increases the distinguished faculty through endowed chairs, builds special facilities, provides special academic opportunities, and broadens opportunities for minorities. Listed are efforts of public institutions that deserve extra support: manpower training, expanding knowledge through research, and broadening opportunities for minorities. The developing financial challenge to higher education institutions is described referring to the limits of federal funds, rising student costs, and the importance of private funds from a number of sources (corporations, foundations, alumni and individuals, and community and civic groups). Charts show the sources of support for public universities in 1975-76, where the public university's private support dollar comes from, and how that dollar is spent. Member institutions of the National Association of State Universities and Land-Grant Colleges and the American Association of State Colleges and Universities are listed. (MSE)