Universities more reliant on major donors as alumni gifts decline

UK and Irish universities are struggling to convince their alumni to hand over cash, instead becoming increasingly reliant on trusts and foundations and major donors for philanthropic support, according to a new report.

The latest annual publication from the Council for Advancement and Support of Education (CASE) found that universities secured £1.55 billion in new philanthropic funds in 2024–25.

With 79 institutions now reporting, this was up slightly from the year before – but the report identifies a year-on-year dip among the 66 universities that have consistently supplied data for the past five years.

For those institutions, new funds committed fell from £1.5 billion to £1.4 billion and the report highlights a growing reliance on major gifts. The three largest donations accounted for nearly a third of average new funds committed.

However, the report highlights a “positive” long-term trend, with total new funds committed rising by more than 30 per cent since 2020–21 among those institutions. 

The CASE report warns that “donor participation continues to soften”, with alumni donor numbers falling again by 2 per cent. Over a five-year period, mean total donor numbers fell by 10 per cent.

On average, 35 per cent of new funds committed came from trusts and foundations, and just over a quarter from alumni.

Recent analysis by Times Higher Education revealed that donations to the Russell Group declined by 16 per cent last year. The membership body has called for more wealthy UK alumni to contribute towards university funding as institutions battle a financial crisis.

Writing in the report, Sue Cunningham, president and chief executive of CASE, says the need to reimagine donor engagement strategies is becoming increasingly critical.

“Involving alumni in an institution’s impact through communications, volunteering and other meaningful experiences helps to strengthen those relationships over time and can lead to increased generosity.”

In recent months, the University of Cambridge received a £190 million gift from a British investor – the largest donation of its kind in modern times.

Cunningham says the data shows that some institutions are not benefiting from the same levels of contribution as others – but she said this was part of a long-term global trend.

“Institutions in other CASE regions are also experiencing challenges due to budget constraints, economic issues, and funding policy changes.

“For example, some Canadian universities with less mature advancement programmes are seeing declines in philanthropic support.”

The report also highlighted that maintaining fundraising activities can be expensive in itself.

Participating institutions spent £236.4 million on advancement and employed a total of 2,895 staff on a full-time equivalent basis across fundraising, alumni relations and development services.

But, at a time of intense financial pressures, Cunningham says the data shows the benefits of investing in such activities.

“Institutions that have kept investing in their advancement function and carefully curating relationships, even when under pressure, raise more. And those that maintain advancement expertise are better able to navigate uncertainty through stronger relationships and reputation.”

patrick.jack@timeshighereducation.com