Conditions over £2m gift add to discord over Schumacher future

Revelations over key conditions tied to a £2m donation to Schumacher College appear to have tilted discussions over the college’s future in the direction of a group fighting to maintain the institution’s presence on the Dartington estate near Totnes.

The £2 Million Gift

As part of his £2m gift nearly six years ago to fund vital repairs to Schumacher’s main building on the estate, Hong Kong businessman Andrew McAulay says in a letter that the transfer of the money is conditional on Schumacher “remaining in occupation of The Old Postern [the building] … and …being kept free of all encumbrances for a period of 20 years from the date of the gift”.

The restrictions also appear to give the environmental campaigner Satish Kumar a crucial role in formulating the future for Schumacher.

Terms and Conditions

The document says acceptance of the gift must be accompanied by “fulfilling the spirit and purpose of [a set of principles related to Schumacher] such to be decided in consultation with and at the discretion of Satish Kumar”. The veteran ecologist and peace activist is a Schumacher co-founder and a leading proponent for keeping it going independently.

Despite the restrictions, representatives of the college and the Dartington Hall Trust remain far apart in discussions over the future of an establishment which has won world renown as a centre for ecology studies.

Schumacher has been under threat since the Dartington Trust – of which the college has been a core element since its creation in 1991 – in late August, shut down degree courses within days of the start of a new academic year, signalling likely closure.

Exclusively for Schumacher

While many people know about McAulay’s donation, the conditions have been shrouded in secrecy up to now. The stipulations – in a letter he wrote to the trust in February 2019 which has been seen by Totnes Pulse – also say that the gift “is not to be used for the general funding of the Dartington Hall Trust or the Dartington estate”.

The letter was signed by the then chair of the trust, Greg Parston, and also by Rhodri Samuel, then a trustee of Schumacher College Foundation, a separate charity set up to support the college, indicating acceptance of the conditions. Totnes Pulse has verified the document is genuine.

Who is Andrew McAulay

McAulay is a member of the wealthy Kadoorie family, well-known in Hong Kong, and a friend and confidant of Kumar. Known for his environmental interests, McAulay says in his letter: “It has been my pleasure to be at Schumacher College, as a visitor and then as a course participant. I am inspired by the work of the college.“

at the discretion of … Kumar

While McAulay did not respond to requests to comment, his restrictions raise the prospect that – if the college were forced to move away from its home or disappear altogether – the trust might come under pressure to return the £2m. Since most of the money has been spent and the trust is short of cash, repayment would be almost impossibly hard.

As a result the letter may boost the efforts of the group led by Kumar to keep the college alive and so find a solution to what appears an impasse in talks with the trust. A key idea is to establish the college as an independent entity free from any formal link to the trust, apart from paying it rent to use the Old Postern plus other close-by buildings on the estate currently used by the college.

In a statement Kumar said: “I remain hopeful that we can reach agreement with Dartington Trust so that Schumacher College can continue at the Old Postern, as an independent entity separate from the Trust and renting buildings and space from it at a reasonable rate. This will be a win-win solution.”

Stayin’ Alive

The Satish Kumar Foundation (SKF)- a community interest company started by Kumar and two others involved with the college, Jon Rae and Mona Nasseri – has been talking to trust representatives about the college’s future. While Kumar and his colleagues have said they have put forward useful ideas, the trust has said the foundation has “confirmed no interest” in keeping the college going at the Old Postern.

The trust has also questioned how Kumar and his associates plan to raise the money they need to run an educational establishment offering courses covering a limited set of academic areas. Another factor is that the Old Postern – a former medieval parsonage – plus other Schumacher buildings are part of the trust’s property giving it an edge in any discussion over how the buildings should be used.

While the trust has pointed out that the college has never paid rent, backers of the college have said the issue of rent never arose when the establishment was an integral part of the trust with education being organised as part of the trust’s charitable activities.

No interest

The trust said: “We don’t comment on private contracts leaked to the press by third parties, nor on their content or veracity. DHT is in discussions with a number of organisations, including Dr Jon Rae, Chair of the Satish Kumar Foundation, about the future shape of the Trust’s Schumacher College operation, as well as use of the college’s former physical footprint.

“Talks with SKF have confirmed no interest in locating a new offering, much reduced in scale, at The Old Postern. Moreover, no agreement with former donors, signed by previous management, has ever specified rent-free occupancy. Clearly, continuing to allow any tenant to occupy DHT space rent-free would be irresponsible and deprive the Trust of funds needed to maintain the estate for all users, members and visitors.“

Needs must…

The trust’s move in August to shut degree courses was part of crisis measures taken by a new management team led by Lord David Triesman who took over as chair in March 2023. Triesman resolved that the trust needed to act quickly to shave costs and combat what he saw was a risk of bankruptcy linked to years of weak financial controls and poor decisions.

Dartington has argued that whatever the educational achievements of Schumacher the costs of its continuing operations are too onerous for a financially troubled charity to absorb. While jobs have been shed and other activities have shut down, the trust has continued to run arts programmes and say it is on track for a recovery while being open to new ideas.

However it has run into problems with the Charity Commission, its regulator, which has opened a regulatory compliance case to examine governance issues together with a delay of nearly six months in publishing Dartington’s latest financial accounts.