In March 2012, Reed was awarded the prestigious TIAA-CREF Hesburgh Award for Leadership Excellence, which is named in honor of the Rev. Theodore M. Hesburgh, C.S.C., president emeritus of the University of Notre Dame. In deciding the award, the judges cited Reed’s commitment to students as chancellor of the CSU, where he has successfully steered the system’s 23 campuses through state budget cuts while simultaneously meeting the complex demands of increasing enrollment. In addition, they highlighted Reed's efforts to build collaborative partnerships and award-winning outreach programs – particularly those dedicated to students from underserved backgrounds – that have received national acclaim. They also acknowledged his support of a number of multi-campus initiatives to improve research and instruction, and benefit local businesses and communities. Reed pledged the $20,000 prize from the Hesburgh Award to the William Randolph Hearst CSU Trustee’s Scholarship fund. He and his wife Cathy have donated almost $90,000 to the scholarship fund since 1998.