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Boost for University fundraising as Denham announces details of £200Million match funding scheme

03 April 2008

Universities and colleges working to secure cash donations and extra financial support will choose from one of three funding tiers to win a share of a £200million match funding scheme, the details of which were announced today by John Denham.

The 'Voluntary Giving' initiative is designed to encourage more universities of all shapes and sizes to boost their fundraising efforts and stimulate further investment in higher education from individuals and private investors, many of whom have benefited from a university education.

Following a consultation with the higher education sector, the scheme will operate on a three tier basis designed to allow institutions to set their own fundraising aspirations.

The top tier, the most challenging but potentially rewarding, will be funded on a 3:1 private to public funding ratio, the second 2:1 and the third on a 1:1 basis. This would mean, for example, that a university in the second tier which raises £4million would receive an extra £2million from the Government. Once universities have indicated which tier they wish to join each tier will be capped to ensure the scheme is able to respond to the needs or participating institutions.

John Denham, Secretary of State for Innovation, Universities and Skills, said:

"The Government has already committed more than £10billion to higher education and our children’s futures this year alone. The Voluntary Giving scheme should generate a potential £600million additional funding over the next three years for universities and colleges to spend in any way most beneficial to them and their students.

"There has been an increase in individual donations to institutions, with more than £200 million given every year by those who can afford to do so. 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. That is why the Government will match fund donations in the way we have outlined today aimed at benefiting universities and colleges of all shapes and sizes.”

Joanna Motion, Vice President for International Operations for CASE (Council for Advancement and Support of Education) said:

"This initiative puts a new and effective lever into the hands of everyone who wants to strengthen our universities. Alumni and donors, Vice-Chancellors and fundraising practitioners, will share the challenge of harnessing the power of philanthropy to help universities tackle society’s pressing needs. We expect real momentum in giving to education in England over the next three years, thanks to this welcome opportunity. As the provider of specialist training and resources in educational fundraising around the world, CASE looks forward to helping universities meet the challenge professionally."

Chairman of Jaeger Co Ltd and the British Fashion Council and London College of Fashion alumnus Harold Tillman recently made a £1million donation to his former college and commented:

"I believe passionately in the need to support future generations of students and am already contributing philanthropically to where I studied - London College of Fashion.

"I applaud this important initiative by the Government and believe that it will help advance fundraising for the higher education sector by increasing donor involvement and overall contributions. I very much hope other alumni will come forward and support their former institutions"

Notes to Editors

  1. The Voluntary Giving scheme was announced by the former Prime Minister Tony Blair and Minister of State for Higher Education, Bill Rammell last year and will see the Government provide £200 million over three years. The initiative is intended to stimulate additional private cash donations to the sector of over £400 million - meaning £600 million in total could be generated for Higher Education.
  2. In July 2003 the Voluntary Giving task force was commissioned by the Department for Education and Skills to advise the Government on how to promote increased giving to higher education and recommended the Government should give consideration to a matched-funding scheme.
  3. The Government response to the Voluntary Giving Task Force report can be found at http://www.dfes.gov.uk/highereducation
  4. The final scheme has been designed to be institution and donor friendly.
    The rules are:

    • The Scheme’s Structure

      • There will be three tiers and institutions will largely be able to self-select the tier they wish to join based on their own aspirations.
      • The three tiers will be match funded at 3:1, 2:1 and 1:1 private to public.
      • The tiers will each have a different cap level, with the 3:1 tier having the highest cap. The actual cap amounts will not be confirmed until institutions have indicated their preferences for the tier they wish to join.

    • Eligible Donations for Matched Funding

      The following will be eligible for matched funding:
      1. actual gifts of cash (not pledges);
      2. shares, with their cash value fixed as the value of the share when it arrives in the brokerage account of the institution;
      3. small and medium sized charitable trusts and foundations, i.e. those who donate over £60 million a year will be excluded;
      4. HEIs own non-consolidated trusts;
      5. corporate giving where it fits within the above categories;
      6. overseas giving where it fits within the above categories;
      7. Gift aid.

      Legacies and gifts in kind will not be eligible for matched funding

  5. The latest date from the Ross Group survey suggests that levels of giving are now over £200 million a year with more than 50 HEIs active in fundraising. Whereas is 2001-02 over £100 million was being raised but concentrated in only about 20 HEIs.