How philanthropy is transforming South African universities

Published Apr 9, 2025

Share

Philanthropic donations to South African universities have seen significant growth in recent years, with the latest 10th Annual Survey of Philanthropy in Higher Education (ASPIHE) conducted by Inyathelo revealing a sharp rise in donor contributions.

In 2022, donations reached R1.81 billion, up from R659 million in 2013. 

When including Sector Education and Training Authorities (SETA) income, the total funding for the 2022 academic year reached R2.2 billion. 

The number of donors has also surged, more than doubling from 4,355 in 2013 to 8,087 in 2022.

The bulk of these donations came from South African sources, accounting for 88% of the total philanthropic income. Individual donors remain the largest contributors, making up 71% of the donor pool, while trusts, foundations, and the private sector contributed 83% of the total income.

A significant portion of the funds—47%—was allocated to student funding, underscoring the focus on improving access and equity in higher education. 

Research, infrastructure, and community engagement also received considerable attention.

Despite these gains, South African universities continue to face financial pressures, including rising student debt. 

The pandemic has also shifted fundraising strategies, with greater emphasis on online and hybrid learning, pushing for more philanthropic donations becoming a staple to Universities.

Stellenbosch University

Stellenbosch University (SU) said they have made remarkable strides in professionalising its philanthropic efforts. 

Karen Bruns, Senior Director of Development and Alumni Relations at SU, said that the university raised R412 million in philanthropic income in 2024, a significant increase from previous years.

In 2022, SU received R283.6 million in donations, which rose to R302.1 million when SETA funding was included. 

This growth is attributed to a diverse range of donors, including individual contributors, foundations, corporate social investment (CSI), bequests, and crowdfunding campaigns. 

The university has also worked to expand its international donor base, establishing a UK Trust and a 501(c)(3) “Friends of SU” foundation in the USA while growing its alumni network in nearly 50 countries.

Bruns explained that at SU, donations are strategically allocated, with nearly half of the donations going toward student funding, with campaigns like #Move4Food, which assists food-insecure students, and #Access4Inclusion, aimed at supporting academically strong students at risk of exclusion due to financial constraints. 

The funds also support infrastructure development and research, including projects like the Jan Mouton Learning Centre and the FMHS Biomedical Research Institute. 

Bruns highlighted that SU has developed specialised fundraising teams for areas such as student access, sport, and research, ensuring that donations are used efficiently to align with the university's strategic goals and Vision 2040.

This integrated approach has allowed Stellenbosch University to address the challenges posed by student debt and reduced government funding, while diversifying its revenue streams to secure long-term financial stability. 

“We are committed to ensuring a sustainable future for SU, and our philanthropic strategies are at the heart of this effort,” Bruns concluded.

Professor Anesh Singh Director of Institutional Advancement at the University of the Western Cape

Similarly, the University of the Western Cape (UWC) has seen a substantial increase in philanthropic funding, raising R44 million in 2024—nearly double the amount received in 2023 and the highest total in five years. 

According to Professor Anesh Singh, Director of Institutional Advancement at UWC, this surge can be attributed to stronger donor engagement and the launch of initiatives like the Legacy Fund and iKamvalethu Fund. 

The Legacy Fund, launched in 2023, focuses on long-term infrastructure development and is part of UWC’s broader plan to build financial sustainability ahead of the university’s centenary in 2060. 

Singh explained: “The Legacy Fund is designed to ensure that we are not just meeting immediate needs but are investing in UWC's future.”

University Western Cape

Philanthropic donations at UWC are primarily allocated to student support, with over 80% of funds directed toward bursaries. 

However, Singh highlighted the importance of diversifying funding to support other critical areas such as infrastructure and research. “

While bursaries are vital for student access, we are aware of the gaps in infrastructure and research funding. The Legacy Fund is one way we are addressing these challenges,” Singh said.

UWC’s fundraising strategy also includes expanding corporate partnerships, cause-related marketing, and student-led initiatives. 

The iKamvalethu Fund, launched by the Student Representative Council, is a prime example of how UWC is engaging students in the giving process. 

“It’s a fund by students, for students, aimed at alleviating financial difficulties,” Singh added.

Looking ahead, UWC is prioritising the expansion of its international fundraising outreach. 

“We are actively engaging with global partners and philanthropic networks. By building relationships with our international alumni and collaborating with donor agencies, we aim to ensure UWC’s long-term financial sustainability,” Singh added.

As UWC addresses pressing challenges such as student debt and reduced government funding, philanthropic support plays an increasingly crucial role in securing the institution’s future.

“Diversifying our donor base and expanding our international outreach are critical to UWC’s continued success in supporting education and social mobility,” Singh said.

[email protected]

Weekend Argus