Philanthropic Solutions for Independent Schools: Why It’s Time to Embrace a New Way Forward 

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Reflections from Dan Martin, Senior Consultant & Managing Director, Marts&Lundy Australia from his participation in an Independent Schools Roundtable hosted by JBWere and NAB.

Throughout my career, I’ve had the privilege of working closely with education leaders and institutions to build meaningful, mission-aligned philanthropic strategies. What continues to inspire me is the transformative potential of philanthropy, especially for Independent Schools navigating today’s complex landscape.

Recently, I had the opportunity to attend and present at an Independent Schools Roundtable in Sydney, hosted by JBWere and NAB. The conversation was wide-ranging and thought-provoking—spanning macroeconomic headwinds, the rising expectations placed on young Australians, the essential work of reconciliation with Aboriginal and Torres Strait Islander communities, and, importantly, the growing role of philanthropy in sustaining and advancing Independent Schools.

Leaders and Boards of Independent Schools continue to face a complex array of financial considerations every year:

• Decreasing government funding
• Increasing competition to attract and retain exceptional staff
• Inflationary pressures impacting Australian families
• The constant need to modernise facilities and learning environments to maintain excellence

At the heart of these decisions is a shared mission: serving the best interests of students—today and for generations to come. But there is growing recognition that relying solely on tuition increases to meet these needs is neither sustainable nor equitable.

Substantial, repeated tuition increases the risk of narrowing access to Independent Schools, undermining efforts to build diverse, inclusive student communities, and feeding perceptions of elitism that many schools are actively working to dismantle.

This is where philanthropy can offer a powerful solution. While it is not a cure-all, strategic and mission-aligned philanthropic partnerships can enable schools to:

• Fund critical capital projects and modern facilities
• Establish and grow scholarships and bursaries that enhance access
• Support innovative programs that would otherwise be financially out of reach

Philanthropy contributes to the margin of excellence and remains a force for positive impact, providing opportunities to elevate a school’s mission and impact.

The outlook for philanthropy in education throughout our region remains bright. We’re encouraged to see more Independent Schools that either have launched or are in the process of pursuing ambitious and comprehensive campaigns, averaging between two to seven years in duration. And while there still isn’t a clear and obvious pathway to becoming an advancement or development professional, many schools are professionalising their advancement functions—a critical step in building a sustainable culture of giving.

Further evidence of the growing potential can be found in JBWere’s 2024 Bequest Report, authored by John McLeod. The report points to a staggering $5.4 trillion AUD in intergenerational wealth transfer expected over the next 20 years. Bequests to charitable causes are projected to double from $1.3 billion to $2.6 billion annually within the next decade.

Although the number of individual donors remains stable, the average size of gifts is increasing—signaling both a readiness and capacity among Australians to make transformational contributions.

There is tremendous potential for more Independent Schools to embrace philanthropy as a core part of mission and to incorporate this into their business models, helping to keep downward pressure on rising tuition fees, while providing increased capacity to pursue a variety of strategic priorities. When done well, investing in education through philanthropy can be a very meaningful and impactful experience for so many. Investing in the education of our youth has the power to transform our country and shape the world around us.

As many school leaders know, philanthropy takes time, leadership, and sustained effort. Some schools are just beginning this journey. Others are considering how to take their programs to the next level. Wherever a school is on this path, the potential for impact is enormous—but it requires commitment:

• A willingness to challenge conventional views of what philanthropy is—such as the belief that people give “to” an institution. Rather, people give “through” an organisation to achieve their philanthropic goals and desired impact.
• Investment in people and systems to lead and manage philanthropy professionally.
• Board and leadership engagement, with a long-term view beyond a single financial or calendar year.

As one of the world’s most recognisable philanthropists famously said, “Someone is sitting in the shade today because someone planted a tree a long time ago.”  — Warren Buffet

If we want to ensure that Independent Schools continue to thrive—and remain accessible to a diverse range of students—we must start planting those trees today.

To learn more about the ways in which Marts&Lundy can partner with your institution in pursuit of philanthropic solutions, please visit https://martsandlundy.com/australasia/