Exploring the Barriers To Bequests In Wills To Australian Universities

Decreased government funding has placed increasing financial pressure on Australian universities. Currently Australian universities receive 6.6% of all donations (Australian Council of Social Service, 2005) while universities in the United States attract 14% (Department for Education and Skills, 2004). These figures suggest there is considerable room for improvement for Australian universities. This study used a multiple case study method, involving more than one University, to explore motivations for bequests in Australia. Respondents indicated that tertiary education was viewed as a means to an end, with stronger bonds formed with relevant professional associations rather than the university. Respondents perceived that tertiary institutions failed to engage with and communicate to them. Introduction The higher education sector in Australia is under increasing financial pressure, with most universities seeking to enhance income from non-government sources (Schmidt and Peachey, 2003). Student enrolments are predicted to increase from 45% to 60% completing higher education by 2020 (Department for Education and Skills, 2004). Government funding is predicted to further decline suggesting the tertiary sector in Australia will face further financial stress. The percentage of total university income from donations and bequests is 1.3% and declining as a source of income (Australian Council of Social Service, 2005). Australian universities are seen as the ‘poorer cousins’ of their US counterparts who are generally used as a benchmark for philanthropic behaviours (Hendy, 2003). Broader considerations, including the differences in the political history, size of population, overall wealth, tax incentives, government support of non-profit organisations and the culture of philanthropy, can affect the comparisons of findings from one country to another (Australian Council of Social Service, 2005; Richardson & Chapman, 2005; Wright, 2002). Currently there are no international standards for the collection, reporting and comparison of giving behaviour data. It is often suggested there is a degree of ‘myth making’ in the scale of philanthropy giving in the US; however giving in the US is certainly exceptional (Australian Council of Social Service, 2005). Environmental factors mean that Australian higher education institutions need to become more active in sourcing additional funds from nongovernment sources. This paper first reviews the literature on the motivation to bequest to tertiary institutions, the methodology used in the research, followed by the results.