Many parents pay full tuition.

Let’s say tuition at a school is $1,000 per student and there are 100 students in the school. Simple math would say that the school would be getting $100,000 in tuition income.

But taking a closer look at tuition. The parents of 70 students each pay $1,000, while the parents of the remaining 30 students are provided with needs-based scholarships. Thus, the school receives only $70,000 in tuition. Tuition at the school thus averages out to $700 per student. Shouldn’t the family paying $1,000 be billed for $700 tuition? Hopefully, understanding the school’s needs they will donate $300 to cover scholarships.

I’m not an accountant, but could it be tax advantageous to the parent to show a $300 donation?

And, yes, I’ve oft heard the argument that if the donation is voluntary, parents won’t donate.