Development
£800
£0 £100 £200 £300 £400 £500 £600 £700
Bursaries
Laboratory
Restricted
Awards/Prizes
Distribution of Funds Raised
How is the Laboratory funded? The Governors authorised the full Laboratory project, at a total cost of £21.7 million, on the basis that it would be funded by borrowing £10.6 million from the College’s endowment, charitable donations £5.9 million and funding the balance from annual surpluses and borrowing from the banks. As at 31 July 2015, the total cash spent on the project was £15.7 million, of which £3.7 million had been raised from charitable donations. How much money is needed to fund future Capital Projects? The total cost of the potential future projects in the Masterplan is currently estimated at £16 million. Why can’t we use more of our capital such as the College’s Endowment? Governors are cognisant of their responsibility towards future generations of Alleynians and are therefore reluctant simply to use the endowment to help fund the Masterplan or the ‘New Dulwich Experiment’ and would wish to borrow from it only to a limited extent. Any borrowing, either from the endowment or from the banks will ultimately have to be funded from annual surpluses so there is inevitably going to be pressure on the College’s finances over the coming years. Governors have to ensure that any borrowing is affordable and that the College’s finances are secure over the long term. How strong is the College’s Balance Sheet? The College does have a strong balance sheet. However, £43 million of this represented capitalised building works on the campus and other assets that cannot be realised. There were realisable endowment assets of £23 million but these need to cover the net debt and pension deficit which totalled £18 million.
Balance Sheet as at 31 July 2015 (in millions
Realisable endowment investments
£22.8
Cash
£8.9
Loans (Debt)
-£8.3
Other non-realisable net assets
£43.3
Pension deficit liability (operational staff)
-£9.8
Total net assets
£57.0
What is the bottom line? We need your support whether as a new donor, or as one of our already loyal supporters. Whilst financially strong, the College operates on relatively small margins. This position will continue over the period of the College’s Strategic Development Plan, including the Masterplan for the site. It is therefore very important that the fundraising continues to be successful if the College’s ambitions are to be achieved without taking funds away from other activities or provisions that the College would normally expect to fund from its annual income. And finally a VERY BIG thank you. The £1.3 million in donations was due to the generosity of many of you, our donors and benefactors. Please continue to support Dulwich College in order that future generations can have the education that so many of you had the good fortune to benefit from.
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