UK: Learning from the States

At last British universities are taking a leaf from their American cousins' book on the art of fund-raising. But UK universities have a long way to go before they catch up. Figures show that Harvard alone raised more than £310 million (US$609 million) in 2004-05, while Oxbridge raised £185 million - out of the estimated overall amount of £450 million of private giving to UK universities.

A report by the Sutton Trust in December 2006 said the gap in endowment levels between the UK and US remained stark. In 2002, the value of the 10 largest endowments held by American universities came in at around £54 billion, dwarfing that of UK institutions at £6.9 billion.

Only Cambridge and Oxford have endowments of more than £1 billion and would be placed seventh and eighth respectively in the US top 10, says the report. Cambridge is ahead of the game as it started a campaign in 2001 to raise £1 billion by 2012 from benefactors and former students. By last July, it was well on target having raised £663 million. Oxford has just launched a similar campaign with a target of £1.25 billion to enable it to compete with the American Ivy League.

The Labour government famously made education its priority when it came to power in 1997 and increased spending on higher education. In its latest settlement, England's funding council increased its grant to universities by 3.3 % to nearly £7.5 billion. Out of a total university income of £19.5 billion in the UK, 39% comes from funding council grants with 2% from endowments and investment income, according to the Higher Education Statistics Agency.

The government is keen to encourage private fund-raising along American lines. In 2003, ministers asked Professor Eric Thomas, vice-chancellor of Bristol University, to head a task force to see how universities could increase their endowments. His report led to the government last year setting up a £7.5 million matching funding scheme to help universities set up fund-raising offices and staff in the sector.

In April, the government announced another matching scheme that allows universities to win a share of £200 million if they receive private donations. Universities Secretary John Denham said institutions could spend the money in any way most beneficial to them and their students.

"I want to see more funding from private individuals, many of whom are successful and wealthy graduates who have benefited from a university education and want to give something back," Denham said.

However, the Sutton Trust report noted that the rapid expansion of fund-raising (development) offices had outstripped the supply of suitably qualified development professionals: "It is currently an employees market, with salaries rising significantly and universities having to recruit from the US and Canada," the report said. "In some universities this has had the unfortunate effect of fuelling further scepticism of the value of fund-raising among academics - many of whom are paid much less than senior development professionals."

Another concern is that very few senior figures, such as vice-chancellors, chancellors or principals, have a clear fund-raising remit, a key recommendation of the Thomas report. More senior level appointments are needed to inculcate the cultural change needed at the very top of universities.

"Only then is it likely that fund-raising will emerge as a central accepted activity in academic life in the UK," the Sutton Trust report declared.

diane.spencer@uw-news.com