However, with the impact of democratic thought, contradictions emerged. Yale, which was established based upon Protestant creeds, could on no count accept the thought. The result was that in 1817，conflicts escalated. The Connecticut government made new policies, on the on hand to approve the establishment of new colleges to compete with Yale, and on the other hand, it ended federal funding to Yale. Again Yale was up a tree for lack of capital. Just then, Yale found an effective way to raise funds, that is, to turn to its alumni.

In 1827, Yale alumni association was set up and managed to raise funds. Then, in 1890, the Yale Alumni Fund was chartered by the Yale Corporation. The Fund has since become the vehicle for the most successful giving records. To meet the broad and varied interests and concerns of Yale alumni, the Yale Alumni Board was chartered in 1906. Its task was to create a central alumni group for an exchange of views between the University and her alumni. As alumni interests grew, so did the size of the Alumni Board, which diminished the Board's effectiveness. So the Association of Yale Alumni (AYA) was born. The AYA provides a channel for communication between the alumni or the University, oversees the direction of alumni organizations and programs, provides the means for examination of University policies and maintains the stature of Yale University. AYA Assembly happens semi-annually.