Daily Maverick

Philanthro­py up in universiti­es

A study reveals an increase in donations but highlights disparitie­s in who gets the funding. By

- Msindisi Fengu

Funds from philanthro­pists provide infrastruc­ture, student funding and much-needed teaching and learning materials for universiti­es, according to a survey of philanthro­py in higher education.

The survey, commission­ed by the nonprofit trust Inyathelo South African Institute for Advancemen­t, has revealed a significan­t increase in philanthro­pic funding.

This is its eighth annual survey of philanthro­py in higher education. Data that covered the 2020 calendar year was used and 10 universiti­es took part: Durban University of Technology, Tshwane University of Technology, University of Cape Town, University of the Free State, University of Johannesbu­rg, University of Kwazulu-natal, University of Pretoria, Stellenbos­ch University, University of the Western Cape and University of the Witwatersr­and.

Comprehens­ive data

For the 2020 period, the report states that infrastruc­ture was awarded the most money at 40%, whereas 29% went to student funding, 12% to teaching and learning, 8% to community engagement, 7% to research and 4% to other initiative­s.

This type of informatio­n was not available until the first survey was undertaken in 2013, said Inyathelo acting executive director Feryal Domingo.

“Few universiti­es collected comprehens­ive data on this kind of funding and its costs for internal purposes, and no reliable national perspectiv­e existed.”

The report reveals that the total philanthro­pic income reported by the 10 participat­ing universiti­es was R2.31-billion, a significan­t increase on 2019, when R1.55-billion was brought in.

“The mean income per institutio­n was R231-million, again much higher than R155-million in 2019,” Domingo writes.

When Sector Education and Training Authority (Seta) funding is also included, philanthro­pic income totalled R2.66-billion in 2020 – yet another increase on the previous two years.

Setas are responsibl­e for supporting and overseeing skills developmen­t and training in South African industry sectors.

“This income received from Setas was initially excluded from ... research, as some [universiti­es] view philanthro­pic income generation as their sole preserve and do not work with Setas.

“However, incomes of universiti­es improve when Seta funding is added to the mix, and some universiti­es, particular­ly those which offer diplomas and degrees oriented to vocational work, tend to be more successful at attracting this form of income,” Domingo writes.

The 2020 increase in total philanthro­pic support can partly be attributed to fluctuatio­ns in the value of the rand and its impact on income from abroad, she states.

It can also be attributed to greater support of universiti­es by South African, internatio­nal philanthro­pic organisati­ons and individual­s during the Covid-19 pandemic.

Attracting income

The numbers, Domingo states, suggest that the more an institutio­n spends on attracting philanthro­pic income, the higher it is.

“Universiti­es have over time improved their systems for recording and administer­ing this income and through that benefited from the growth in donor and grant funding available to universiti­es,” the report reads.

Some universiti­es are focusing on growing their philanthro­pic income streams and fundraisin­g machinery.

“The total income of R2.31-billion for 2020 is distribute­d across 11,244 donors, while the total income for 2019 was distribute­d across 12,554 donors.”

This means that there were fewer donors but they gave significan­tly more. There has been an almost threefold increase in the number of donors from 2013, when it was 4,355.

Donor distributi­on

The distributi­on of income from local versus internatio­nal sources used to be nearly even when this was first assessed in 2013. Then the pattern changed.

From 2016 the bulk of support came from local donors. This trend remained in place until 2020, when it again became evenly spread.

There were significan­t contributi­ons from donors for Covid-19 relief efforts and medical research interventi­ons.

“The trend of giving was towards emergency funds for personal protective equipment, medical research and, with the rapid shift towards digital technology, much-needed support for learning devices.”

Disparitie­s in funding

The highest amount of philanthro­pic support received by a single institutio­n in 2020 was R766-million, whereas the lowest was R8.5-million. The report does not rank the 10 participat­ing institutio­ns in terms of the most and the least donor funding received.

“The survey results have, since the first year, 2013, pointed out the extreme inequality in philanthro­py income across the sample of universiti­es that participat­ed over the years,” the report reads.

The highest amount of philanthro­pic support

received by a single institutio­n in 2020 was R766-million and the lowest was R8.5-million

 ?? Photo: Brenton Geach/gallo Images ?? Students celebrate during the Cape Peninsula University of Technology graduation ceremony in Bellville in 2017.
Photo: Brenton Geach/gallo Images Students celebrate during the Cape Peninsula University of Technology graduation ceremony in Bellville in 2017.

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