In a year marked by unprecedented financial pressures on higher education institutions across the United Kingdom, universities and colleges in the UK and Ireland collectively secured a record £1.55 billion in new philanthropic funds committed during the 2024–25 academic year. This figure, revealed in the latest CASE Insights on Philanthropy report, represents a slight increase from the previous year and marks the second consecutive year that commitments have surpassed the £1.5 billion threshold. Despite this headline success, the data paints a more nuanced picture: a growing dependence on a handful of major donors and trusts, coupled with a noticeable decline in alumni gifts, which signals potential long-term challenges for sustainable fundraising.
The Council for Advancement and Support of Education (CASE), a global authority on philanthropy in education, compiles this annual survey—formerly known as the Ross-CASE survey—to track gift revenue, donor numbers, fundraising costs, and staffing. With data from 79 participating institutions, the report underscores philanthropy’s vital role in bridging funding gaps amid government cuts, rising operational costs, and international student visa uncertainties.
Breaking Down the £1.55 Billion Milestone
Delving deeper into the numbers, the £1.55 billion encompasses new pledges and gifts designated for various purposes, with 58.7 percent allocated to restricted current uses such as research projects and student financial aid programs. Trusts and foundations emerged as the largest single source, contributing 35.1 percent of the total, while alumni made up nearly two-thirds of donors by count but only about a quarter of the funds by value. This disparity highlights how smaller, frequent gifts from former students are being overshadowed by blockbuster contributions from high-net-worth individuals and organizations.
Institutions that provided consistent data over the past five years showed a robust long-term trajectory, with new funds committed rising more than 30 percent since 2020–21. However, year-on-year figures among 66 steady reporters dipped slightly from £1.5 billion to £1.4 billion, suggesting volatility masked by a few mega-gifts. The three largest donations alone accounted for 31.6 percent of the mean new funds committed, illustrating the 'lumpy' nature of modern philanthropy.
Fundraising efforts demanded significant investment: £236.4 million spent on advancement activities, supported by 2,895 full-time equivalent staff across fundraising, alumni relations, and development services. CASE President and CEO Sue Cunningham emphasized, “Institutions that have kept investing in their advancement function and carefully curating relationships, even when under pressure, raise more.”
The Rise of Major Donors and Institutional Giving
Major gifts have become the lifeline for many universities. For instance, the University of Cambridge received a transformative £190 million from British investor Chris Rokos to establish the Rokos School of Government—the largest single donation to a UK university in modern history. Such gifts not only provide immediate capital but also endow professorships, scholarships, and research centers, perpetuating impact for generations.
Trusts and foundations, including charitable organizations like the Wellcome Trust and Leverhulme Trust, funneled substantial sums into priority areas such as medical research and climate studies. This shift reflects donors' preference for targeted, high-impact projects over unrestricted support, which universities increasingly need for day-to-day operations amid a £9 billion projected cost increase by 2030, according to Universities UK.
Non-alumni individual donors and corporations also played key roles, though their contributions remain smaller in aggregate. Pamela Agar, CASE Europe Co-Executive Director, noted the sector's resilience: “The resilience evident in this year's figures is a reminder of what philanthropy, and the people behind it, can deliver for higher education, even under complex conditions.”
Alumni Gifts: Participation Plummets Below 1 Percent
While alumni represent the majority of donors numerically, their overall participation rate languished below 1 percent of all alumni in 2024–25—a stark indicator of disengagement. Donor numbers dropped 2 percent year-on-year, with a mean 10 percent decline over five years across consistent reporters. Average alumni gifts, though comprising over a quarter of funds, are insufficient to offset broader trends.
- Alumni donor participation: <1% of total alumni base.
- Year-on-year donor drop: 2%.
- Five-year mean decline: 10% in total donors.
This contrasts sharply with US counterparts, where alumni cultures foster habitual giving. In the UK, mass higher education is relatively recent, lacking the deep-rooted traditions of Ivy League institutions.
Unraveling the Reasons Behind Alumni Decline
Several factors contribute to waning alumni support. Economic headwinds, including inflation and cost-of-living crises, have squeezed disposable incomes, particularly among younger graduates entering a tough job market. Universities' negative publicity—over international recruitment, vice-chancellor pay, and campus protests—has eroded trust, with some donors questioning value for money.
CASE attributes part of the issue to immature engagement strategies. Sue Cunningham advised, “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.” Many alumni feel disconnected post-graduation, lacking personalized stewardship or compelling narratives about institutional impact.
Policy shifts, like dependent visa restrictions, have indirectly affected perceptions, while fewer tax incentives compared to the US hinder giving. For details on the full report, see the CASE Insights summary.
Financial Strain and Philanthropy's Lifeline
UK universities face a perfect storm: £3.7 billion in lost funding from policy decisions, per Universities UK, alongside stagnant tuition fees and declining domestic numbers. Philanthropy now constitutes about 2 percent of income (down from 2.5 percent), yet it's irreplaceable for innovation.
Smaller institutions, often post-1992 universities, invest heavily in fundraising to compete, yielding growth in some cases. However, elite Russell Group members saw donations fall 16 percent to £546.3 million—the lowest in three years—despite pushes for US-style alumni culture by former chief Tim Bradshaw.
Spotlight on Standout Campaigns and Gifts
Cambridge's £190 million Rokos gift exemplifies strategic philanthropy, funding interdisciplinary governance research. Imperial College London doubled donations to £74.6 million, including £25 million for business school initiatives. Oxford, despite a dip to £150.5 million, maintains a strong pipeline from global alumni networks.
Younger universities like Manchester (£17.7 million wider philanthropy) and post-92s are ramping up campaigns, focusing on regional impact and scholarships to attract local donors. Durham exceeded alumni targets, proving targeted engagement works.
Read more on elite trends in this Times Higher Education analysis.
Strategies to Reinvigorate Alumni Engagement
To counter the decline, experts recommend:
- Personalized digital campaigns showcasing real impact, like graduate success stories.
- Alumni volunteering programs to foster lifelong ties.
- Loyalty incentives, such as exclusive events or matching gifts.
- Tax-effective giving vehicles, advocating for better incentives.
- Data-driven segmentation to target high-potential donors early.
Institutions investing in advancement staff see higher returns, per CASE data. Reimagining engagement as a two-way street—offering value beyond asks—is key.
Elite vs. Emerging Institutions: Widening Gaps?
Russell Group dominates, with Oxford and Cambridge alone capturing nearly half of sector donations historically. London’s top four unis hit £158.3 million, up 19 percent. Yet, non-elites like Cardiff (0.2 percent income from donations) struggle, highlighting inequities. Post-92s show promise through agile, community-focused fundraising.
Philanthropy's Broader Impact on UK Higher Education
Beyond cash, gifts enable equity: scholarships for underrepresented students, cutting-edge labs, and societal solutions like AI ethics or net-zero research. Amid £122 billion public education spend, philanthropy fills innovation gaps.
Outlook: Navigating Uncertainty with Optimism
A £5.5 trillion intergenerational wealth transfer looms, offering opportunities if universities professionalize. CASE plans a streamlined survey for better participation. With strategic alumni focus and major donor cultivation, UK HE can sustain momentum. As Cunningham concludes, philanthropy transforms lives—ensuring it thrives requires innovation and investment.
