Introducing a Fundraising Culture to European Higher Education Institutions: A Demanding and On-Going Process Olena Horner College of Education and Human Development University of Minnesota U.S.A.

Importance of the Study and Research Questions dramatic decrease in state funding for higher ed worldwide “entrepreneurial universities” (Slaughter & Leslie, 1997; Potter, 2008) fundraising and the “new paradigm” of European higher ed risk “for sustaining the institution’s mission and intellectual profile” (Weiler, 2000, p. 336)  What factors contribute or detract from successful fundraising campaigns in Europe?  What are the strategies employed by inexperienced in fundraising higher education institutions in Europe, which allow them to succeed in fundraising campaigns?

The Need for Fundraising for Higher Education in Europe  expenditures on higher education institutions in Europe as a percent of GDP remain lower than the OECD average expenditures  in 2006, the EU19 average spending on higher education % of GDP  OECD average % of GDP  in 2006, U.S. expenditures on higher education % of GDP

Barriers to Fundraising for Higher Education in Europe  cultural barriers: - weak fundraising culture: Germany: EUR2.6 billion to charitable causes in US: $31.60 billion only to colleges and universities in 2008 UK: combined endowments of British universities total less than half of Harvard’s $34 billion endowment Cambridge University:“The US is a long way ahead, but our view is that the reason there hasn’t been a culture of giving in the UK is that there hasn’t been a culture of asking” (Rice- Oxley, 2008, p. 1-2)

Barriers to Fundraising for Higher Education in Europe - “crowding out” effect: high taxes and dues (almost 30% of the personal income in Ukraine) higher education is not on the donors’ list in Ukraine

Barriers to Fundraising for Higher Education in Europe - negative image in society: the image of begging at a high level - the profession of a university fundraiser is in its infancy in Europe: absence of development offices (13 in Germany) no professional association of institutional fundraisers in Europe (Caboni, 2003) fundraising issues are not a on the list of topics crucial for higher education research in Europe (Teichler, 2005)

Barriers to Fundraising for Higher Education in Europe  legal barriers: Germany: donations from foundations can be offset 100% only up to EUR 307,000 Ukraine: unfavorable tax breaks, inability to receive funding from foreign organizations, if these organizations do not have legal representation in the country

Barriers to Fundraising for Higher Education in Europe  economic barriers: inflation poverty lack of time due to overworking  temptation to approach wealthy international non-governmental organizations

Conceptual Framework Organizational Efforts Contextual Barriers Presidential leadership Cultural context Effective teamwork ALUMNI Legal context (design studio) GIVING Economic context Development plan Orientation toward Cultivation of interest international NGOS in institution

The University of Bremen: The Scientific Approach goal to rank in the “Top Fifteen” of German Universities seeks help from two American fundraising experts from the Center on Philanthropy at Indiana University the task force group adapts the recommendations of the U.S. partners to specific needs builds a fundraising infrastructure with the President of the University at the top of the structure creates the Administrative department (an analog of the Development office) communicates the idea of fundraising and establishing the donor-favorable culture both inside and outside the university recruits ten University of Bremen alumni, who have enjoyed successful careers, to the President’s Advisory Circle

The University of Bremen: The Scientific Approach results: significant private support for institutional needs (establishes 4 new scholarships and 15 doctoral grants with the help from only one company and three private individual donors in 2 years) succeeds in cultivating alumni’s attachment ( 300 alumni work as advisors for the new graduate career network) acquires not only donors but also important advocates and supporters in the local legislature and government

Dnipropetrovsk National University: The Intuitive Approach legal and financial barriers to fundraising in Ukraine need for rehabilitation of one of the main halls of the University decision to focus on the 5% of potential donors at the top of the Pyramid who have resources to provide “a principal gift” presidential leadership and the task force team first invitation of the President of Ukraine research, invitation for a reunion of the President’s class second invitation of the President donation that exceeds expectations stewardship President as a committed alumnus

Conclusion  the tendency towards eclecticism of the fundraising process  the importance of organizational efforts for the success in fundraising  importance of knowledge of the characteristics and motives of donors who contribute to higher education institutions