For the USNA, how are alumni donations dispersed if they are not designated?
The short answer is . . . it depends. If the donation is made to fund a class project (almost every class has one), then the funds are used for that project. If there is no designation at all by the donor, the money is put in the Naval Academy Fund. That fund, while mabye not glamorous, is critically important.
First, it funds the Naval Academy Foundation, which is the private, non-profit entity that raises money for USNA. If you know anything about raising money for charity, you know that it takes a certain amount of money to raise money. It pays the salary of the professional staff who work with (mostly large) donors, who process donations, etc. I believe that for every $1 given to the Fund, the Foundation is able to raise $7 for USNA. USNA is currently in the midst of a capital campaign to raise $400 million for USNA, all from private funds.
Second, it directly supports the Brigade. Each year, a significant amount of money from the Fund is transferred to the Superintendent. This allows him to "jump start" important programs while waiting for federal funding or to support programs that have no or insufficient federal funding. Examples include study abroad programs and capstone projects.
Third, it supports Alumni Association projects such as Shipmate, career conferences, etc.
As a general rule, unless you're making a large donation, choosing the NA Fund will make the greatest impact.
You asked.