University Fundraising Crisis: Governance Changes Blamed for Donation Collapse
In a stark revelation, Terence Kealey, former vice-chancellor of the University of Buckingham, has highlighted how shifts in university governance have drastically reduced philanthropic donations. Kealey points to a specific case where the University of Buckingham, once thriving under democratic staff-led management, now struggles so severely that the position of fundraiser has been eliminated entirely.
The Impact of Governance on Fundraising Success
Kealey argues that the traditional model of governance, where universities are run by councils of lay, external, non-executive trustees, may hinder fundraising efforts. He contrasts this with institutions like Oxford and Cambridge, which are governed unconventionally by their staff and alumni and consistently attract substantial donations. At Buckingham, under staff-led governance, the university secured significant gifts, including £5.5 million from Lord Vinson and multiple donations exceeding £1 million each from various donors and foundations.
However, after the council changed the royal charter in 2017 and 2019 to disempower academics and empower themselves, fundraising plummeted. Today, the university raises so little money that the fundraiser role has been made redundant, illustrating what Kealey terms a "governance effect" rather than a biblical "Matthew effect."
Call for Targeted Philanthropy to Address Inequalities
Amanda Broderick, vice-chancellor and president of the University of East London (UEL), echoes concerns about donation disparities. She notes that too often, philanthropic funds flow to already wealthy, exclusive institutions, reinforcing inequalities within the higher education sector. Broderick emphasizes that if donors are serious about impact, they should focus on where their contributions will make the greatest difference, rather than simply giving to prestigious names.
Financial pressures across UK universities are real, and some donors may hesitate, fearing their gifts will merely plug deficits. Yet, Broderick asserts that this is precisely when targeted philanthropy matters most. Universities remain among the UK's most trusted institutions, playing crucial roles in health, opportunity, and economic growth.
Examples of Inclusive Universities Making a Difference
Broderick highlights UEL as a prime example of an institution driving inclusive growth. As the most socially inclusive UK university, UEL contributes over £1.1 billion annually to the UK economy and is one of only ten debt-free universities. Its initiatives, such as the Neighbourhood Health Hub and other practice centres, provide free services to local communities that would otherwise go without.
When UEL ranks equally with Oxford and Cambridge for positive outcomes in the Graduate Outcomes Survey, it becomes clear that transformative giving opportunities exist beyond elite gates. Broderick calls for a shift in philanthropy from prestige to purpose, urging donors to support institutions where each pound can widen access, strengthen communities, and drive inclusive growth.
This debate underscores the urgent need for a reevaluation of university funding models and philanthropic strategies to ensure a level playing field for all institutions.
