U.K. Government to Match University Fundraising
Prime Minister Tony Blair recently announced the implementation of a matching gifts program that would effectively double private donations to universities in England.
By matching donations to universities in England with public funds, the prime minister envisions greater involvement in higher education funding by university alumni and other philanthropists.
Joanna Motion, CASE’s vice president for international operations, says an injection of new money on this scale will be “invigorating.”
“It could double the current level of fundraising by universities within three years,” Motion says in a news release. “Through this imaginative proposal, the government is giving a timely boost to the international competitiveness of universities in England.”
Blair’s announcement was influenced by a recent CASE report on matched funding programs around the world. The report, commissioned by the Sutton Trust, shows that “challenge funding” can galvanize the readiness of donors to give to universities and increase the effectiveness of the institutions in asking for support.
“By launching this program, the U.K. government has made a strong and clear commitment to the principle that both public and private resources are essential to ensuring educational quality, access and affordability,” says John Lippincott, president of CASE. “Other nations will undoubtedly take note of this bold and strategic effort.”
£600 MILLION BOOST TO BE GENERATED FOR HIGHER EDUCATION FUNDRAISING
15 February 2007
The Prime Minister and Minister for Higher Education Bill Rammell today announced a substantial boost to help increase voluntary giving to English Higher Education providers, making them more financially independent.
The government is to provide £200 million over three years for a matched-funding scheme to support English universities in their fundraising efforts. The scheme 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.
The scheme will aim to generate increases in donations for the majority of universities, not just those with a tradition of fund-raising. It will also assist other Higher Education providers in England to increase their capacity to raise funds. The scheme will run for three years, starting in 2008 and will match-fund donations on a 2:1 private to public basis with the aim of promoting a culture of individual giving to higher education similar to that of in the US, which will outlast the scheme.
PM Tony Blair said:
"We recognise that universities need the funding to compete and to improve participation. Variable tuition fees from 2006 - and fees in 1998 - gave universities substantially more money, and we have greatly improved investment in world-class
"Our critics said tuition fees would harm participation. But the figures yesterday showed that student applications are not only rising again, but they are at their highest ever level. However, it is important that our universities have every opportunity to raise the resources they need.
"That's why this fundraising plan is so important. It will incentivise all universities to raise more charitable and private funding. Increasing voluntary giving is a vital step in enabling institutions to build up substantial endowments over the longer term, so that they can improve infrastructure, teaching and student bursaries."
Bill Rammell said;
“The announcement we are making today is great news for the Higher Education Sector - Increasing voluntary giving is key to giving universities greater financial independence and can help institutions to broaden their funding base.”
“Income raised through fund-raising provides the sector with an additional source of income on top of the extra resources we are already making available through increased government grant and variable fees. And it seems that fees are not putting our young people off University as figures released by UCAS yesterday show that the numbers of people applying to enter Higher Education in 2007 are the highest ever at this point in the application cycle”
This press notice relates to 'England'
1. The Voluntary Giving task force was commissioned in July 2003 by the Department for Education and Skills with a
remit to advise the Government on how to promote increased giving to higher education. The task force was chaired by
Professor Eric Thomas, Vice-Chancellor, University of Bristol. The report of the task force was published in May 2004.
It recommended that the Government should give consideration to a matched-funding scheme.
2. The Government response to the Voluntary Giving Task Force report can be found at
3. The Government will not finalise the details of the scheme until it has consulted the sector later this year. But, broadly
speaking, it will aim to help
(i) the majority of publicly-funded English higher education institutions to achieve a step change in fund-raising.
(ii) our most successful fund-raisers to compete globally by offering an additional grant for those who raise the highest
amounts in donations. These grants will be on a 3:1 Private to public ratio.
(iii) other publicly-funded HE providers in England to increase their fund-raising capacity.
4. There will be caps on grant contributions for individual institutions to ensure that the money is not concentrated in just
a few institutions. We will consult the HE sector on the level of the caps and other details before the scheme is
5. Only two English universities currently have endowments worth £100m compared to 207 in the US - not just
“Ivy League” institutions but ordinary state universities as well. The endowments of many US public universities have
grown rapidly over the last 20 years from a virtually zero base, stimulated by the existence of matched-funding
schemes at the state level.
6. Institutions will be generally free to decide for themselves (subject to the wishes of donors) how to spend the extra
resources we are making available but we will issue joint guidance later this year with Universities UK and CASE on
international best practice. We will expect them to strike a reasonable balance between spending extra resources on
things like bursaries and scholarships, for example and on innovative sustainable buildings or other assets.
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Britse regering stimuleert fondsenwerving
U.K. Government to Match University Fundraising