Higher education institutions are increasingly popular among high-end donors, now accounting for a quarter of all donations worth more than £1m, as a report finds major philanthropy regaining its pre-financial crash strength.

Universities and other higher education institutions in 2012 received £570m from generous individuals, foundations and corporations – equivalent to 42 per cent of the total value of all £1m-plus gifts.

Traditionally trusts and foundations have been the most popular destination of gifts of this magnitude, but this year’s Coutts Million Pound Donors report found that higher education has now pipped foundations, which account for one-fifth of the total value of gifts worth above £1m.

Recovery in major philanthropy

The annual report, released this morning, found that donations in the £1m-or-more category have increased to approach pre-recession levels for the first time. In 2011/2012 96 individuals or institutions made 197 donations of more than £1m to reach a total value of £1.35bn – up by 9 per cent on the previous year. The average donation has also increased from £5.3m to £6.9m within a year.

What has decreased, however, is the variety of recipients of £1m-plus gifts. In 2010/11 there were 191 recipients of such donations, whereas last year it decreased to 156.

The vast majority of donations (71 per cent) were made by institutions, with just under a quarter given by individuals. Corporations accounted for 7 per cent of all £1m gifts.

The Coutts report, authored by Dr Beth Breeze, has been running since 2007, but this year expanded to include £1m-equivalent donations from around the globe. The United States topped the chart, with 889 donors making $14bn worth of high-end gifts.