Fundraising by NON-UK UNiversity charitable Trusts 2014-19
Our second annual survey into the scope and scale of UK charitable trusts set up by non-UK universities indicates that non-UK universities increasingly are turning charitable trusts in the UK in order to raise funds, and that 2019 was their most successful year yet by income.
Key findings
Between 2014-19 charitable trusts set up in the UK by international universities have received over £342.5m ($460m) from UK based philanthropic giving.
According to the study there are now 84 universities which have active charitable trusts for fundraising purposes in the UK.
2019 was the most successful year yet for non-UK university charitable trusts, collectively reporting 37% growth over 2018 income. Collectively 84 universities raised £78.6m compared to £57.5m in 2018.
55% of trusts reporting growth in 2019 donations over 2018.
Charitable trusts appear to be established primarily with the view of fostering giving among alumni and major donors based in the UK.
The evidence suggests that charitable trusts are long term investments, and do not afford a quick return. 76% of university charities were established over 10 years ago.
The 50% biggest income generating trusts were established before 2010 – with one exception the 2014-registered M.I.T. Foundation, which was a replacement to the MIT Development Trust established in 1984. It appears to reflect the long-term investment required in alumni and major donor giving.
The US, Israel and South Africa are the top destinations for UK outbound philanthropic funding via charitable trusts for universities. They are also some of the oldest such university charitable trusts.
US universities are the chief beneficiaries by volume of donations. 25 US institutions raised £162.4m between 2014-19. US universities raised £39.8m in 2019 compared to £18.6m in 2018, a rise of 114% year on year.
Israeli universities raised £150.9m from 2014-19, and £30.6m in 2019, an 82% rise since 2014.
The top five universities to benefit from UK giving through charitable trusts collectively raised £181m between 2014-19. They are:
Hebrew University (£45.8m)
University of Pennsylvania (£43.8m)
Weizmann Institute (£38.5m)
Tel Aviv University (£35.1m)
Princeton University (£17.7m)
Courtesy of Christian Delanoix
Commonwealth universities comprise 42% of non-UK charitable trusts identified in the research, reflecting the UK’s historical ties and a home to alumni from Commonwealth institutions.
The cohort of New Zealand universities were the biggest Commonwealth winners in 2019. Five universities received £1.44m, 60% of which was donated to Massey University.
76% of Australian, Canadian and New Zealand university trusts saw increase in giving in 2019, over 2018. However, only one South African university reported an increase in giving. The beginning of 2019 saw South African universities were buffeted by the Fees Must Fall student protests.
However, South Africa universities remain the third biggest country recipients. From 2014-19, seven universities received £9.1m. The University of Cape Town is the main South African recipient of UK giving, receiving £5.4m between 2014-19.
The success of a charitable trust is not only a reflection of the investment by a university in its UK fundraising efforts, but also an institution’s ability to mobilise its alumni.
A number of universities have closed their UK charitable trusts, suggesting it failed to deliver against expectation. Universities to do so include Tufts University (US), Makerere University (Uganda) and North West University (South Africa).