The reductions in state tax support for public universities that began around 1990 and continue today are progressively redefining relations between government and public higher education. The reasons for the drop in appropriations per student vary from state to state and include aging electorates, voter fervor for tax cuts, and mandated restrictions on public spending. In response, some public universities have moved away from dependence on tax support and toward reliance on other sources of funds. Higher tuition charges have in fact become the most common source of new revenues for public institutions. In a handful of instances, public institutions have focused instead on intensifying their fund-raising efforts, starting up major capital campaigns that have yielded philanthropic dollars to support core academic activities. Raising philanthropic funds is not for every public university, but in the right places at the right times, it can work. This article will describe how the University of Virginia was able to raise such funds and the lessons it learned that might be of interest to other public institutions.