Oxford and Cambridge extend UK sector fundraising dominance

UK universities raised about £800 million in donations last year, but other institutions fell behind the dominance of the universities of Oxford and Cambridge, new figures show.

Times Higher Education analysis of financial accounts found that Universities UK members received £792 million in donations and endowments in 2023-24 – up from £764 million the year before.

The same 119 institutions and their subsidiaries in the analysis raised £574 million in 2021-22 and £523 million in 2020-21.

Nik Miller, partner at the international fundraising consultancy More Partnership, told THE that the importance of philanthropic support for UK higher education has never been greater.

“For many universities, philanthropy is no longer just icing on the cake – it’s a strategic necessity,” he said.

His research has shown that philanthropic income represents an average of 10 per cent of turnover among the highest-performing institutions.

The highest income from donations was at the University of Oxford. Its £227 million, which included £32.8 million from the Uehiro Foundation, was a 24 per cent increase on 2022-23.

The University of Cambridge’s donations and endowments grew to £150 million in 2023-24 as a result of significant increases in the value of new gifts and an equipment donation from the Dell Corporation for the Dawn AI supercomputer.

Joanna Motion, associate partner at More Partnership, cautioned that financial accounts can be inconsistent, with universities often treating philanthropic giving as “apples and oranges and avocados”. Some major gifts to STEM organisations may be listed under research rather than donations and endowments, she added.

Together, Oxford and Cambridge raised almost half (48 per cent) of the sector’s total – up from 41 per cent the year before. These figures do not include donations received by the independent colleges of both institutions.

At £415 million, the total philanthropic income among the rest of the sector fell to its lowest level since 2020-21.

Miller said it was important that all institutions “benefit from this rising tide”, rather than philanthropy widening existing gaps between institutions.

There is a strong correlation between the number of fundraising staff and the philanthropic funds committed, he added.

“The potential for further growth is clear if the sector can match demand with talent, and leaders are sufficiently committed to fostering a philanthropic culture at their institutions – rather than simply being an institution that raises money,” Miller said.

“The habit of giving to universities, and the positive impact that donors enable, is a well-kept secret that needs to be broadcast more loudly. Despite philanthropy’s increasing sophistication and impact, public awareness of the impact of philanthropy remains worryingly low.”

Behind Oxbridge, universities in the capital raised the most donations in the latest financial year – including the London School of Economics (£49.3 million), Imperial College London (£35.5 million), UCL (£25 million), King’s College London (£23.7 million) and London Business School (£9.9 million).

Rounding out the rest of the top 10 were the University of Edinburgh (£30.1 million), the University of Sheffield (£12.5 million) and Durham University (£11.9 million).

While Oxford and Cambridge are “record-breakers” in the philanthropic field for good reason, Motion expected a dozen institutions to launch their most ambitious philanthropic campaigns to date in the coming years.

But with formidable distractions for university leadership, she cautioned that not every university will “seize the moment”.

“What we should collectively strive to avoid is the serial start-up, where resources and goodwill are wasted by go-stop-go-stop investment,” she said.

“Institutions that can maintain consistency in their relationship with supporters will see the long-term benefits.”

Research by the Council for Advancement and Support of Education has previously found that organisations such as trusts and foundations, companies and lotteries are the primary sources of philanthropic support for higher education.

Motion added that the value of donations increases in tougher times – a financial gift from a far-sighted donor can help an institution innovate and take risks in a risk-averse environment.

“When other sources of income are so constrained, philanthropy is one of the few areas where the university can be active rather than reactive.”

patrick.jack@timeshighereducation.com