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Universities benefit from rise in philanthropy

Fundraising | Kirsty Weakley | 12 Sep 2012

There is a growing culture of donating to universities,  but there is still more to be done, according to a new report.

Review of Philanthropy in UK Higher Education Institutes looked at philanthropy in the UK over the last 10 years. It found that for the last five years the total amount and number of donors to universities has increased.

For the financial year 2006-2007 131 UK institutions reported they had raised a total of £513m from 132,000 donors. Five years later this had risen to 152 institutions reporting £693m from 204,000 donors.

In 2010-2011 donors included trusts and foundations, corporate entitites, individuals (alumni and non-alumni) with gifts ranging from 50p to £50m.

Improve the student experience to increase donations

Depite the rise in income the report - commissioned by the Higher Education Funding Council for England (HEFCE) and conducted by fundraising consultancy More Partnership - found that just 1.2 per cent of alumni give to universities. It states that there is “potential improvement for universities in engaging their supporters and conveying the understanding of the charitable impact universities deliver”.

Further, if alumni participation increased to five per cent by 2022 philanthropic income would reach £2bn, it claims. To do this the report reminds universities that they must ensure students have a positive student experience, especially in light of the recent increase in tuition fees.

Professor Shirley Pearce, chair of the Review Group, said: "There has been a step-change in philanthropic giving to higher education over recent years. Successful institutions can be found right across the sector.”

She added: “Increasingly the UK is developing a body of good practice in fundraising and is developing the people it will need for the future. There is a real sense of momentum and this must be maintained. If the current trajectory continues, UK higher education institutions can expect to receive up to £2bn per annum from some 630,000 donors by 2022.”

According to the report a government matched funding initiative for England worth £200m between 2008 and 2011, and a similar scheme in Wales, have had a significant impact through capacity building in higher education institutions.

It concludes: “It is clear that the leverage generated by the idea of matched funding is very attractive to donors at all levels. It acts as an incentive and a stopwatch; it gives the donor a significant sense of value for money.”

Fundraising professionals are described as “mission critical” by the report but in short supply. The report recommends that workplace development should be made a priority.

Recommendations

The report makes several further recommendations, including the following:

• Universities should develop advancement plans for fundraising and alumni relations
• Universities need to engage with external supporters and build business-like relationships with major donors
• Government should introduce a new match funding scheme
• HEFCE should launch a public information campaign
• HEFCE should fund a review of workforce and training issues to develop a set of recommendations