Traditional Research Funding Mechanisms and Philanthropic Fundraising Partnering for Success

1. Traditional Research Funding Mechanisms and Philanthropic FundraisingPartnering for Success Dan Nordquist and Simon Kerridge INORMS Congress, Washington DC 13 April 2014

2. UK Context Chair ARMA The Association of Research Managers and Administrators Dr Simon Kerridge Director ofResearch Services University of Kent

3. University of Kent • 50th Anniversary • 20,000 students • 3,440 staff (1,432) • £200m turnover • £15m research income • Canterbury, Medway, Tonbridge, Brussels • Paris, Athens, Rome • Top 20 UK University (Guardian) • Queen’s Anniverary prize for Tizard Centre • Top 80 under 50 (THE)

4. University of Kent Canterbury Medway Tonbridge Brussels Paris Athens Rome

5. UK Philanthropy “the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes” [Thomas 2004] “Some institutions have started, over the past decade, to set up and expand their professional fundraising capacity. This has drawn on expertise from the USA where many public universities started serious development activities in the 1970s and 1980s.” “A survey of 17 UK universities active in fundraising showed they had an average income of £6 million in philanthropic gifts in 2001-02. The amounts raised ranged from £29,000 to £69 million.” “The key to increasing giving is for institution to ask, in a professional and systematic manner, for donations.”

6. UK v US giving Increasing voluntary giving to higher education, Thomas 2004 1Generosity versus altruism: philanthropy and charity in the US and UK, Wright, LSE 2002

7. UK Philanthropy • Is an emerging area • 2000 Few (large, old) HEIs have philanthropic income • 2004 Thomas Report1 “Many, particularly alumni, are very willing to support their institutions especially if the university has created an environment where giving is regarded positively by both the donor and the recipient.” “success lies in doing the well-known job of fundraising well” “Recommendation 11: There should be a matched funding scheme…” 1http://www.bis.gov.uk/assets/biscore/corporate/migratedd/publications/i/increasingvoluntarygivingreport.pdf

8. UK Philanthropy • 2012 Review of Philanthropy in UK Higher Education2 “At the end of financial year 2006-7, 131 institutions reported £513 million in total funds raised from 132,000 donors. Five years later, 152 institutions reported £693 million from more than 204,000 donors. That means 16% more institutions, reporting an overall rise of 35% in funds raised, and 54% more donors.” “Fundraising performance correlates closely with investment.” “Giving to UK higher education has even grown since the recession in 2008, when it decreased in North America and when giving to other UK charities also declined.” • Philanthropy is not all about money or new buildings 2http://www.hefce.ac.uk/pubs/rereports/year/2012/philanthropyreview/

9. UK Philanthropy • Donors give to universities that solve problems, rather than to ones that have problems • Focusing on donor motivation unlocks the biggest gifts • Gift acceptance issues should be considered alongside other areas of risk that vice-chancellors need to manage in the business of running the university (such as the ethics governing research and knowledge transfer) • Matched funding has worked for universities in England and Wales and should remain in the repertoire.

10. UK Matched Funding Scheme • 2008-2011 • Tier 1 institutions received £1 of matched funding for every £1 of eligible donations claimed, up to a cap of £200,000. • Tier 2 institutions received £1 of matched funding for every £2 of eligible donations claimed, up to a cap of £1,350,000. • Tier 3 institutions received £1 of matched funding for every £3 of eligible donations claimed, up to a cap of £2,750,000 http://www.hefce.ac.uk/whatwedo/invest/funds/volgiving/

11. Kent Matched Fund • 2008-2011 • Tier 3 institutions received £1 of matched funding for every £3 of eligible donations claimed, up to a cap of £2,750,000 • 7,365 gifts • Humanities: +366% • Sciences: -1% [fluctuations] • Social Sciences: +389% • NB in Humanities and extra 1/3rd makes a big difference – a project can become viable because of the extra • Whereas in Sciences this is less often the case

12. UK Development Offices Comparison of Origin of Development Directors in 20 Older Development Offices 2006-2012 Length of Current Service of Development Directors in 20 Older Development Offices 2006-2012

13. Philanthropic Income as a% of Total Expenditure

14. What can you do? • When people think about “giving to charity”, universities may not be the first causes that come to mind. Yet, as evidenced by the Coutts Million Pound Donor Report (University of Kent)3, universities already attract the largest gifts made to any kind of good cause and have a long and honourable tradition of philanthropy • A prerequisite for attracting the interest of donors is clarity over what the institution is and what it stands for. “It’s tough to raise money effectively if you don’t know who you are, what you’re seeking to achieve, which projects will help you get there and who the supporters are who might be interested in your achievement.” 3Dr Beth Breeze, Centre for Philanthropy, University of Kent “higher education accounts for more £1 million+ gifts than any other sector”

15. What can you do? • The Thomas Report identified three key elements to the creation of a successful asking institution: • institutional leadership; • lay leadership; • and a professional development operation. http://www.hefce.ac.uk/whatwedo/invest/funds/volgiving/

16. Summary… • Donors are not like any other funder • They need wooing • Many take an active interest in the project • It is a personal relationship… don’t use standard emails! • Who should handle the relationship • Research Office? • Development Office? • Vice-Chancellor’s Office? • Matched funding schemes add complication • Where is the income reported? • Can the academic access the funds easily • But worth the hassle - can sway a donor to give… more!

17. Thank you for listening – any questions?