News & Views item - September 2006

 

 

"I have asked BIHECC to investigate how to develop a stronger culture of philanthropy towards Australian universities." (September 13, 2006)

    No not a statement put out by, say Richard Pratt but a call to arms by the Minister for Education, Science and Training, Julie Bishop. It follows of course her suggestion to the religious establishment to fund the creation of new colleges on the campuses of  Australia's public universities.

 

Has the good minister made any suggestions of significantly increasing the provision of urgently need resources for the universities by her government?

 

Not unless she's been sitting in a "cone of silence" while making them. Instead she released the following statement.

In countries such as the United States, philanthropy provides a substantial additional revenue stream for universities that further supports institutions in support of excellence.

There is growing interest in the higher education sector in working with government and business to foster philanthropy.

I would like to see Australian graduates maintain lifelong, mutually beneficial relationships with their university.

"In countries such as the United States"?

 

Well, there aren't any; the US is unique in its philanthropic donations to higher education, no other country (including Canada, the only other nation mentioned by Ms Bishop) even comes close. Furthermore, the majority of those donations go to the US' private universities not the state supported schools which have, relative to Harvard or Stanford, quite small endowments.

University of California, Berkeley has an endowment of ~US$2.2 billion

University of California, San Diego, ~US$0.35 billion

Stanford, ~US$12.2 billion

Harvard, ~US$25.9 billion

University of Toronto, Canada ~US$1.7 billion, by far the largest of any Canadian university.

  The minister has allocated $200,000 for a new study by the BIHECC (Business, Industry and Higher Education Collaboration Council)  to investigate strategies to assist the development of a culture of philanthropy towards universities. From the terms of reference (see below) the BIHECC will hire a consulting firm to undertake the study.

 

 Business, Industry and Higher Education Collaboration Council (BIHECC) Membership

Name
Mr David Murray (Chair), Chair, Future Fund.
Ms Lisa Paul, Secretary, Department of Education, Science and Training.
Mr Peter Hendy, CEO, Australian Chamber of Commerce and Industry.
Ms Heather Ridout, CEO, Australian Industry Group.
Mr Doug Jukes, National Chairman, KPMG.
Ms Catherine Livingstone, Chair, Commonwealth Scientific and Industrial Research Organisation.
Professor Ashley Goldsworthy, CEO, Business-Higher Education Round Table.
Mr Peter Cockbain, National President, Engineers Australia.
Professor Margaret Gardner, Vice Chancellor, Royal Melbourne Institute of Technology.
Professor Jeanette Hacket, Vice Chancellor, Curtin University of Technology.
Professor Fred Hilmer, Vice-Chancellor, University of New South Wales
Ms Stella Axarlis, Member of the National Youth Careers and Transition Advisory Group, former Deputy chair, ANTA Board.

 

And the terms of reference for the study?

Purpose
BIHECC requires the provision of services to conduct research and analysis into philanthropic giving in the higher education sector.

Background
Australia compares poorly to leading countries such as the USA and Canada in terms of philanthropic revenue for higher education institutions. A number of reviews of funding for Australian higher education institutions have suggested that universities should look to increasing their philanthropic effort to provide an additional revenue stream but that the development of a culture of philanthropy to universities requires facilitation.

Objectives
To develop a culture of philanthropic giving to universities and to establish a set of national best practice guidelines.

Scope
This research and analysis should take into account findings from current educational philanthropy activity nationally and internationally and will involve:

  • identifying how universities currently engage with potential donors, including alumni;
  • consulting with key stakeholders including universities, business, state government, university development professional offices and peak philanthropic bodies to review and identify best practice nationally and internationally;
  • developing a set of national best practice guidelines;
  • identifying practical, cost effective options that will assist universities to become more strategic in their fundraising;
  • identifying ways of building a culture of philanthropy;
  • identifying possible areas of legal reform to facilitate establishment and management of university endowments;
  • examining the role of a higher education philanthropy foundation in increasing philanthropy universities and identifying possible models;
  • identifying the impact of recommended approaches on the higher education sector; and
  • providing a cost/benefit analysis of the options identified.

Reporting requirements
The consultant will report to the Business Industry Higher Education Collaboration Council in the form of a written interim and final report, outlining ways of developing a culture of philanthropic giving to universities, the role of a foundation and outlining a set of national best practice guidelines.

Recently the Minister for Health, Tony Abbott, advocated the privatisation (i.e. sale to commercial interests) of the states' public hospitals, perhaps now is the time for Ms Bishop to do the same with regard to the nation's public universities.

 

On the other hand a highly placed source has reported to TFW, "A colleague and I [Sir Humphrey and Sir Arnold perhaps] were discussing a few days ago the possibility of  selling off the government. I suspect that there are a lot of groups out there, like the universities, that would be prepared to pay a lot  of money for the government, so they can quietly dispose of it and  put something much better in its place. Doing so would amount to a  very substantial investment in the future of the country."

 

Well, perhaps a warm passing thought for a cold night.

 

However, more to the point, so far Ms Bishop has proved herself to be no more interested in or able to improve the state of Australia's university system than her predecessor.