Didn't give the school that much? This is a myth perpetuated by the fact that a $5,000 bond and bell doesn't sound like much and the assumption that the school changed its name in hopes of getting more (though I've never seen anything but speculation to that point). .
The reality is that it was a good gift for the times. His gift did help but more importantly his name and reputation backing the school were extremely valuable. Henry Rutgers was a great philanthropist and leader in the New York and New Jersey area. His name came with great credibility and recognition. So to say he didn't give the school that much is vastly understating his impact.
But I suggest the statue not just because of his gift/impact on Rutgers but because of his enormous impact on the entire region. He was a great American figure and merits such recognition. Not to mention it would become a place of pride and tradition for students and alumni.
And yes, of course, privately funded.