challenge grants as forms of philanthropy partnerships two case studies from uct max price...
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Challenge grants as forms of Philanthropy Partnerships
Two case studies from UCT
Max PriceVice-Chancellor
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1. The Gordon Institute for Performing and Creative Arts
• GIPCA – long gestation in discussion with key donor – Sir Donald Gordon – who ideally wanted to fund an opera house. Eventually agreed to an institute with capital and endowment components.
• Intention was challenge grant for R50m – i.e. would match what was raised. Project cost was R100m
• After 4 years, nothing raised other than University's own contributions (which did not count toward the challenge). DGF terminated the challenge/donation.
• DGF did grant R2.5m for 5 years operating costs.
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GIPCA – What went wrong?
• Performing and creative Arts are hardest to raise funds
• Particularly for an endowment• Funds raised for operations did not count• UCT contributions did not count
Note different purposes of donor challenges– to demonstrate recipient commitment– to promote philanthropy
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GIPCA – What went wrong?• UCT Fund-raising efforts possibly inadequate– Project champion/director – delays and
competency mix – 3 in 5 years• OTOH– Fund raising literature– Annual appeals– VC personal effortsYet consistency and relative priority compromise
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GIPCA – What went wrong?
• Attitude of potential donors to someone else’s project– Particularly if named– If huge inequality in size of donations
• Unknown total means harder to sell vision
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2. Kresge Challenge for Research Summer School
• Summer School in survey methods offered for 10 years free to SA participants – very successful.
• Funded by Mellon• Had relied on annual fundraising – not
sustainable long term, and always uncertain how many participants could be funded
• Decided to create endowment of $1,5m
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Kresge case study Challenge strategy
• Kresge Foundation agreed to a challenge grant of $750,000: all-or-none, with 3-year cut-off date.
• Target of additional sources – institutions that had benefited directly– alumni of the programme– those who potentially would benefit directly by
guaranteeing them free access to the course for specified number of participants and a seat at the table
• Other foundations – including legacy grants
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Kresge case studyMatched funds raised
• Mellon $335,000• Ford $200,000• 7 Universities each contributed $10,000, an 8th
$20,000• Stats SA contributed $150,000 (informed by
the costs to them of x students over 10 years) • 1 Individual alumnus, but was redirected since
target was met.
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Lessons from Kresge case• Value of strong champions (Murray Leibrandt and
Francis Wilson)• Marketable product with financial opportunity costs
and proven track record• Door openers – in government• Offering Universities “a seat at the table” and value
from money in terms of direct benefits (3 students)• Value for money in that their notional fees are 10% of
real costs’, i.e. donation is matched by 10-fold funding• Deadline focuses efforts and urgency
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Lessons from Kresge contd.Disappointments/weaknesses
• Disappointment that no alumni gave – still very hard in SA
• Disappointment that amount from universities lower than expected ($100,000)
• Would not have succeeded absent Ford and Mellon legacy grants (themselves unusual!)