Research identifies ‘culture shift’ towards university philanthropy

By: 

Cheryl Chapman

Managing Editor, Philanthropy UK

UK universities are proving a big draw for philanthropists with latest figures showing a 25% increase in the number of donations to them since 2007-2008, according to the annual Ross-CASE survey, which maps higher education philanthropic income in the UK.

UK universities received £506m in philanthropic cash income in 2009-10, down from £526m in 2008-9 (£57m), with 11% received from legacies.

Joanna Motion, vice president for International Operations at the Council for Advancement and Support of Education (CASE), says the findings point to three key trends: an increase in number of donors, an increase in legacies and importantly a 9% increase in pledges to give, that she says shows a confidence and commitment to giving that was not apparent in the last survey.

The just-published findings shows more than 185,000 people and organisations donated to UK universities, colleges and higher education institutions in the period 2009–10, supporting research, student bursaries and new building projects.

The number of alumni giving to their former university or college also increased by 10% during this period, with over 147,000 individuals making gifts, contra to US figures from Council for Aid to Education’s survey which reported a decline in alumni giving for 2010.

The findings show philanthropy continues to become more established as a significant and secure income stream for the sector as a whole, providing funds equivalent to a mean of around 2% of universities’ total institutional expenditure.

Motion says increases are the result of a ‘swiss army knife’ of reasons including external factors, such as a significant investment in fundraising that has led to its professionalisation and the £200m government matched fund launched in 2008 that comes to an end this year. She also points to generous donors willing to act as role models and talk about their funding.

Philanthropist Rory Brooks, co-founder of the international private equity group MML Capital Partners, who has been instrumental in encouraging a culture of giving to higher education and is principal benefactor of Manchester University’s newly-created Brooks World Poverty Institute (www.bwpi.manchester.ac.uk), agrees that the investment in fundraising has been a key factor in raising the number of donations. “It’s a simple equation - the more effort you put into fundraising the more you get out.”

He says university funding ticks all the boxes for major funders providing "focussed, high impact, transformational philanthropy". “Donors really get it,” he says.

Brooks, a graduate of Manchester University, was inspired to re-engage with the institute to which he says he owes his own success as a businessman, having witnessed the close relationship US alumni maintain with their universities when he worked in the States in his twenties. “In the US, higher education organisations remain a vital part of graduates’ social capital; in the UK we tend to walk away.”

In total, UK universities had just over 8.4 million addressable alumni in 2009-10, of whom 147,012 made a gift for any purpose - a mean proportion of  1.22% - though nine universities had greater than 4% of alumni making a gift.

"There is plenty of scope to engage more alumni," says Brooks.

Brooks is passionate too about what university research can achieve. “Business is a narrow occupation but the breadth and depth of research that takes place in universities is inspiring and is the means through which we can solve today’s problems.

“Supporting research provides two shots for one, furthering the aims of the university and providing solutions for mankind,” in his own case finding new ways to alleviate poverty.

The Ross-CASE survey shows the distribution of income remains highly skewed with 48% received by Oxford and Cambridge, and a further 23% by the remaining members of the Russell Group of Universities.

Motion says while this has much to do with their strong brands, established systems, ‘great address books’ and strong alumni relations, other universities should not feel they cannot achieve similar results.

“Oxford and Cambridge have created tremendously impressive campaigns and they show it can be done. But smaller universities that communicate their offer well, perhaps drawing on their regionality or their specialist research programmes, can find a unique space that connects with donors’ positions. Many smaller universities are punching above their weight by doing so.”

The survey concludes that established fundraising programmes, which characteristically have a large number of donors, a large proportion of alumni givers and receive many large gifts, are most successful on every measure.

“These qualities allow the programme to have a strong ‘pipeline’ to build on,” it says.  

Motion says: “Such a significant increase in the number of people and organisations giving to universities reveals the early signs of a culture shift toward higher education philanthropy. Continued professionalisation of university fundraising combined with the impact that donors can see from their donations are making a real difference. It’s tremendously exciting and a testament to the institutions’ efforts in this area.”

The report is available for download at www.rosscasesurvey.org.uk.