Learning from the American Fundraising Model: A European Perspective March 2014 | Page 2

Executive summary For anyone involved in fundraising at one of Europe’s museums, theatres or universities, life is far from easy. Institutions that could once rely on government funding are finding that this support is diminishing. Some face tougher fundraising challenges than others. However, all recognize the need to diversify their sources of funding, in particular by increasing the proportion of donations from private individuals. European cultural institutions and universities have recognized the necessity for increased fundraising for many years, driven by the need to support new capital projects and rising operating costs, as well as by the intensifying of global competition for excellence, talent and funding. The financial crisis of 2008, tough economic conditions and the austerity policies introduced by many national administrations only served to intensify this pressure. Dominating the thoughts of many of the university professionals we interviewed for this paper is the impact that fiscal austerity has had on government funding for their organization. In some countries, new policies have placed 2 EXECUTIVE SUMMARY additional restrictions on funding, as is the case in Hungary, where stricter limits have been imposed on the number of state-funded undergraduate places. And there are exceptions. In Sweden, for example, where the government is concerned to rebuild the country’s traditional strength in life sciences, the Karolinska Institutet, a medical research institute, has seen state funding actually increase. Meanwhile, the effects of austerity have been felt keenly in the cultural sector as well. In a 2010 overview of cultural funding in Europe, the Dutch Centre for International Cultural Activities (SICA) highlighted a UK announcement of cuts for culture and sport over four years of 25 to 30 percent, and a plan in the Netherlands to reduce the state budget for culture by 20 percent, among others. Even those institutions that still receive strong government support are planning for a different future. This is the case at the Vrije Universiteit Brussel, where Paul De Knop, the university’s rector, is working to reduce its proportion of government funding – currently around 86