University of Toronto surpasses $2-billion mark in fundraising campaign

The University of Toronto has surpassed $2-billion in donations to its Boundless fundraising campaign in the last five years — and on Thursday raised its target to $2.4-billion. Though the number is unremarkable by American postsecondary campaign benchmarks, it's an anomaly in Canada.

Despite receiving more than $2-billion in 94,736 individual donations since 2011, U of T president Meric Gertler said the campaign's success can be traced back to the 1990s.

"We've been at this game now in a serious way for 25 years or so," he said. In the 1990s, the first billion-dollar campaign was led by former U of T president Robert Prichard. "[It] broke tremendous new ground, and I think raised everybody's sights. It gave Canadians a sense of what was possible."

Canadian schools have been struggling to catch up to the "100-year head start" of American postsecondary institutions in the field of philanthropy, Mr. Gertler said. Institutions like the University of Southern California or University of California, Berkeley, have historically run multi-billion-dollar campaigns.

To Mr. Gertler, the difference lies in American schools often cultivating a "culture of philanthropy" early on in students' educational careers.

"Even before they graduate, they make it clear to them that giving to their alma mater is the correct thing to do. They recognize that this is a relationship that they built for life," he said. "It's pretty widely spread in the U.S. We're catching up, but we've got ground still to cover."

There is increasing pressure on Canadian schools to bolster their fundraising campaigns, he added, noting that constricting government budgets for education is increasing the demand for outside money. These funds help support fundamental research and student scholarships that had previously be funded publicly.

"Fundraising has now become an essential part of the business of universities," he said. "Pretty much every university has to engage in this kind of activity to some extent."

With the additional $400-million it is seeking, U of T's general plan includes expanding its offerings for students headed abroad and students coming in internationally, but the administration hasn't set out exact goals. It plans to consult faculty to ask what services or programs they believe the university needs.

Any money given to U of T is untaxed – meaning 100 per cent of donations go to the cause specified by the donor. An average of 16.7 cents per dollar, however, go to overhead costs – non-labor-related costs such as rent or marketing – according to Mr. Gertler and David Palmer, vice-president (advancement), who oversees the university's fundraising efforts.

People make donations, Mr. Palmer said, based on the relationship the school has built with them.

"Major gifts are not a one-act play," he said. The key is to put donors in direct contact with those their gift would help: researchers, students or departments.

"People give, first and foremost, to create change."