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Both higher education and philanthropy, developed during the nascent origins of America, have exerted significant influence on the development of American society. Universities pursue multiple goals under the umbrella of one core mission to educate. Similarly, the multifaceted nature of foundations produce many initiatives that work toward the core public good. Thus, an argument for relational ties between the two entities is merited. This paper focuses on philanthropy’s partnership with American higher education. By focusing on the historic influences of the Carnegie Foundation for the Advancement of Teaching and General Education Board, the reader is shown how a partnership between philanthropy and post-secondary education aided in America’s social stratification.