I had missed this great quote from the director of the school, Sir Howard Davies, made in the Times of London last Monday to defend the donation (quoted in Just Journalism):
Sir Howard defended the LSE’s new Middle East Centre, half of whose board support an academic boycott of Israel. “The biggest donor to the School in the past year is George Soros, who of course is of Jewish origin. We operate, I believe, a very balanced view.”’We love taking money from both Jewish and Arab haters of Israel! How much more balanced can one be?
(Davis has just resigned over accepting the Libya donation.)