Boom in non-UK university charitable trusts tapping into British philanthropy

© Jorge Fernandez

Globalisation of university fundraising leads to steep climb in non-UK universities setting up charitable trusts in the UK

Israeli universities lead international field in attracting giving through trusts

19 November 2019, London --- The extent to which non-UK higher education institutions are turning to the UK for funding is revealed in a survey of British charitable trusts that have been set up to channel philanthropy to non-UK universities. The study published by UniversityPhilanthropy.com and the Cape Partnership, a London-based public affairs and policy firm, reveals that 79 non-UK universities have established charitable trusts in Britain collectively raising £262m ($338m) over the past five years.

According to the research Israeli universities have been at the vanguard of using UK charitable trusts for fundraising purposes – and for many decades. The top three largest charitable trusts by revenues relate to Israeli institutions – the Hebrew University of Jerusalem, Tel Aviv University and the Weizmann Institute – raising nearly £100m through their British charitable trusts over the past five years.

There are 24 US universities which have UK trusts collectively raising over £120m in the past five years. The University of Pennsylvania’s UK foundation is the largest having raised nearly £26m in donations since 2014. Commonwealth countries feature strongly with 28 dedicated university trusts.

There are large variations in the way universities use their charitable trust. Some universities use it as the principle vehicle in channelling giving in the UK. Others use it solely to channel giving from the alumni. Some major donors such as large foundations and trusts choose not to donate via a charitable trust, preferring to give directly to the university in country.

Commenting on the research Andrew Wigley, director of The Cape Partnership, said:

“A UK charitable trust is now a key part of the fundraising infrastructure that overseas universities invest in to benefit from UK philanthropic funding sources.

“Having a trust in the UK carries some advantages. Fundraising through a UK charity can provide reassurance to prospective donors. Moreover, many UK charitable foundations and trusts will only give to registered charities. Establishing a UK charitable trust allows a non-British university to bypass such restrictions. UK charities can make use of the government’s Gift Aid system which enables it to increase the value of donations made by UK taxpayers.

“Israeli universities are the exemplars in highly sophisticated university fundraising, having established the trend for dedicated charitable trust. The first such trust was established seventy years ago, in 1950, by the Weizmann Institute. Six out of the eight oldest university trusts relate to Israeli universities. It speaks to decades of experience and knowledge in university fundraising and philanthropy.

“Two thirds of trusts have been established in the past 20 years alone. This appears to reflect two trends. First the massive expansion in philanthropy globally which universities are increasingly trying to access; and second the greater prominence of alumni-targeted fundraising.

More information about the research is available at UniversityPhilanthropy.com.

ENDS

Notes to editors:

• The research identifies non-UK universities that are either responsible for setting up a charitable trust in the UK for fundraising purposes or are the beneficiary of a charitable trust set up for the sole purpose of fundraising for a given university.

• 79 university and business schools were identified and are included in this research. All financial data reflects the income that charitable trusts received, as reported to the Charity Commission.

• We excluded 13 university trusts from the research. These are trusts set up by universities, primarily American, with the purpose of supporting UK-based campuses or study programmes for students. In other words, the trusts are not designed to support non-UK higher education.

• The financial data reported does not reflect all outbound UK giving to international universities. Not all UK-based alumni, foundations and philanthropists will always give to a university’s UK-based charitable trust. They may have means and preferences to make donations in alternative ways.

• Data about non-UK university-related charitable trusts is available at the website of the charity regulator, the Charity Commission for England and Wales, and the Office of the Scottish Charity Regulator.

• The desk research was conducted in September 2019.

• It was augmented and corroborated by a number of one-on-one conversations with university administrators involved in fundraising in the UK.