The end of the government’s matched funding scheme has failed to damage overall fundraising growth in the university sector, which raised 14.4 per cent more in pledges in 2011/12 to a record £774m.

The sum raised in 2011/12 represents an increase of one third over 2009/10.

But this strong performance is not felt across the breadth of the university world, according to the annual Ross-Case Survey released today. The higher education fundraising market remains dominated by Oxbridge and 22 other universities, which combined form the ‘Russell Group’ and which accounted for 83 per cent of all new funds secured by universities over the most recent year on record.

While Cambridge and Oxford universities dominate the fundraising in higher education – accounting for nearly half (45 per cent) of all new funds raised – the 22 other universities in the Russell Group have made greater inroads into the market, now accounting for 38 per cent of money raised and pledged. Two years previous, these 22 universities accounted for a quarter of all new funds. Meanwhile, universities in other ‘groups’ have seen their market share remain flat or fall.

Oxford and Cambridge in particular have run exceptionally successful fundraising campaigns, with the former increasing its fundraising target from £1.25bn to £3bn last October.

The overall increase of 14 per cent indicates that some universities have managed to keep momentum from the matched funding scheme, which ran from 2008 to 2011. But the picture is more complex. More than a quarter of universities reported an increase in income of between 50 and 100 per cent, but a greater amount (29 per cent) reported a fall in fundraising income of more than 50 per cent. Overall two-fifths of universities had seen income grow year-on-year between 2010/11 and 2011/12, while the remainder experienced falls.

More donors giving to university

The number of people giving to universities has increased dramatically over the last few years. Last year’s Ross-Case Survey reported an increase of 20,000 donors to universities and this year’s report is a 12,000 increase on that to 213,000. In 2011/12 213,000 donors made gifts to universities. Across the board, the numbers of both alumni and non-alumni donors has increased, with the latter increasing by 11 per cent to 44,000.

While there has been an increase in the number of alumni on university databases, now 8.8m, again this is dominated by the Russell Group which, including Oxbridge, have nearly two-fifths of all addressable alumni in the UK. Even so the mean proportion of those alumni on record as giving remains low at just 1 per cent, although seven universities report participation rates of as high as 4 per cent. 

Kate Hunter, executive director of Case Europe said: "It’s fantastic news that we’re seeing continued growth in higher education philanthropy, despite wider economic pressures and the end of the government’s matched funding scheme. As giving to higher education grows, we need to ensure institutions are supported in developing this important stream of income. Analysis and sharing of best practice will be key to helping more and more universities reach their full fundraising potential.”