You neglected to mention which Midwestern university was held as an example, but here's a motivation for giving to your august institute: Football/Basketball priority ticket sales. If giving to a university fund also counts as priority points in sports ticket sales, it puts the altruistic motivations of many of your university's contributors into question. Give to the scholarship fund and as a "reward" the contributor gets the opportunity to order some seats in the stadium for the upcoming season. The more you give, the better the seats. Don't give enough, you may not even get in the stadium.
". . . but to suggest that people are ponying up big dough so that their kids or grandkids can go to a state university...well, that's an absurd joke. People out here on the prairie give to their university because they see it as a positive force in the community, and they believe in giving back to the system that provided them with the building blocks of their own careers." Sorry to be so cynical, but "aircap," I find your statement to be absolutely hilarious.