University warning on tax changes to hit donations

Education Correspondent

Tuesday 10 April 2012

SCOTLAND'S oldest university has issued a fresh attack on proposed changes to tax relief on large donations from philanthropists.

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Andrew Denholm Education Correspondent

The warning from St Andrews University came as it announced two new research postgraduate scholarships in the arts, paid for by a £1 million donation from a former student.

The scholarships are the gift of Gordon Bonnyman, who graduated with an MA in modern history and political economy from St Andrews in 1966 and is now chairman of Charterhouse Capital Partners, one of the most successful private equity firms in Europe.

The scholarships will provide annual support of at least £20,000 to each eligible student to cover tuition fees and living expenses and will be payable for a period of study of up to three years.However, a spokesman for St Andrews said plans by Chancellor George Osborne to limit tax relief on charitable donations to £50,000 would damage the likelihood of similar donations in the future."This is exactly the type of gift that is threatened by the Budget proposals. We will continue to lobby and argue very strongly for a reconsideration of what has been proposed," he said.Last week, The Herald revealed Scottish charities, including the National Galleries of Scotland, also feared the measure would damage their finances.And the universities of Cambridge and Edinburgh have said the plan could badly impact on the education sector.Philanthropic giving represents a small part of funding for Scots universities, but it is seen as an increasingly important element given the likelihood of tighter public funding. Leading universities such as Aberdeen, St Andrews and Edinburgh have embarked on international campaigns to raise money.Yesterday, officials from St Andrews welcomed the donation from Mr Bonnyman to the university's 600th Anniversary Fundraising Campaign, of which former student Prince William is patron.Professor Louise Richardson, the university principal, said: "I am delighted by this generous gift to our 600th Anniversary Campaign which has a major focus to attract and support the best students, irrespective of financial means. Thanks to this gift, we will be able to support, for many generations to come, two research students in the arts and humanities, an area where we rank in the top 25 in the world."The gift will contribute to the realisation of two of our strategic aims – to build the university's endowment and to increase the number of research postgraduates at St Andrews."Professor Dina Iordanova, the university provost, added: "The gift will benefit aspiring doctoral students in the arts. "It will assist us in ensuring that humanities at St Andrews, ranked among the top in the world, keep working to global standards of excellence."The scholarship will be named after Mr Bonnyman and his brother Douglas, who is also a former graduate of St Andrews.Born in Glasgow and a pupil at Jordanhill School, Gordon Bonnyman graduated from St Andrews and then Columbia University in New York, before embarking on a career in the City.Across the UK there was a £43m increase in giving to universities in 2010/11.UK universities enjoyed a rise in both the number of philanthropic donors and accompanying cash income, according to a Ross-CASE survey of 150 universities conducted by the National Centre for Social Research. Cash income in 2010/11 increased to £560m and the number of donors reached an all-time high of 204,250, a 10% improvement on 2009/10.

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University warning on tax changes to hit donations

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