Philanthropy

Key message

Contributions from philanthropic resources are needed on top of government spending to ensure that every child is in school and learning.

Although investments in education underpin outcomes across all sectors, philanthropic giving has been disproportionately allocated to health and, more recently, issues like racial justice and equity. Given the multiplier effect investing in education can have in these areas, increasing philanthropic investment in education serves as the most effective way to realise and maintain sweeping cross-sectoral progress.

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Key challenges

Philanthropy will need to play a significant role to help address the education funding gap. Funding for education from philanthropists, corporations and charitable organisations will need to reach US$20 billion in 2030 if we are to get every child in school and learning.
(International Commission for Financing Global Education Opportunity, 2016)
Despite talk of philanthropic contributions to education increasing, they remain insignificant. Just 13% of Fortune Global 500 companies’ total corporate social responsibility budget went to education in 2015, with only 30% of that allocated to primary and secondary education.
(Varkey Foundation et al., 2015)
Without major cost increases, 21% of the financing required to achieve SDG4 will remain unaccounted for between 2023 and 2030. This is the same as an annual funding gap of approximately US $97 billion.
(UNESCO, 2023)

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Make the case

Education anchors investments in all sectors, but corporate giving to global health is 16 times what it is to education. US foundations decreased their share of funding for education by 3% between 2005 and 2015, while increasing their financing for health by 5%.
(GBCE, 2013) (International Commission for Financing Global Education Opportunity, 2017)
Philanthropy can support advocacy to shift norms and practice in education. Philanthropic actors can incite change through global policy campaigns and are strong voices behind important agendas such as the need to increase investment in early childhood education, the importance of climate change as well as girls' education.
(International Education Funders Group, 2022)
Private giving in the form of remittances can have a substantive impact on education – and lowering the cost can significantly increase resources for education. Remittances increased education spending by up to 35% across 18 countries in sub-Saharan Africa and Asia. Lowering the cost of remitting by 4% would provide households with an extra US$1 billion a year to spend on education.
(GEM, 2019)
New innovations in finance can multiply philanthropic investments. The new International Finance Facility for Education leverages donor funding, unlocking four US dollars of additional investment for every dollar contributed.
(Education Commission, 2018)
Education has the potential to tap into innovative financing and impact investing. The health sector has successfully utilised these channels, raising US$7 billion through innovative financing since 2000, in comparison to US$500 million in education funding.
(Global Development Incubator, 2014) (Bellinger et al., 2016)
Domestic philanthropy can provide financing and useful networks and advice that supports governments to pursue their own priorities. High net worth individuals, private companies and philanthropic actors, can be powerful catalysts of change in education by offering their expertise, knowledge, relationships and resources to support governments.
(International Education Funders Group, 2022)

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Education anchors investments in all sectors, but corporate giving to global health is 16 times what it is to education.
US foundations decreased their share of funding for education by 3% between 2005 and 2015, while increasing their financing for health by 5%.
Sources: (GBCE, 2013) (International Commission for Financing Global Education Opportunity, 2017)

Philanthropy can support advocacy to shift norms and practice in education.
Philanthropic actors can incite change through global policy campaigns and are strong voices behind important agendas such as the need to increase investment in early childhood education, the importance of climate change as well as girls' education.
Source: (International Education Funders Group, 2022)

Private giving in the form of remittances can have a substantive impact on education – and lowering the cost can significantly increase resources for education.
Remittances increased education spending by up to 35% across 18 countries in sub-Saharan Africa and Asia. Lowering the cost of remitting by 4% would provide households with an extra US$1 billion a year to spend on education.
Source: (GEM, 2019)

New innovations in finance can multiply philanthropic investments.
The new International Finance Facility for Education leverages donor funding, unlocking four US dollars of additional investment for every dollar contributed.
Source: (Education Commission, 2018)

Education has the potential to tap into innovative financing and impact investing.
The health sector has successfully utilised these channels, raising US$7 billion through innovative financing since 2000, in comparison to US$500 million in education funding.
Sources: (Global Development Incubator, 2014) (Bellinger et al., 2016)

Domestic philanthropy can provide financing and useful networks and advice that supports governments to pursue their own priorities.
High net worth individuals, private companies and philanthropic actors, can be powerful catalysts of change in education by offering their expertise, knowledge, relationships and resources to support governments.
Source: (International Education Funders Group, 2022)

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