Courtauld's £12m 'gift of freedom'

The world's richest arts institution and one of Britain's wealthiest families have pledged millions of pounds to secure the autonomy of London's Courtauld Institute of Art.

The Los Angeles-based J Paul Getty Trust and the family of the UK-based Swedish industrialist Hans Rausing, whose company developed the ubiquitous Tetrapak cartons, have offered funds amounting to £12million to endow the Courtauld and enable it to become an independent college within the University of London.

In addition, the Getty Trust has promised an additional annual income of £350,000 - the interest on a capital sum of £9million - for a specific but as yet undetermined period of time.

Consultants McKinsey and Company were commissioned to advise on the costs involved in gaining independent status after the university's vice chancellor revealed that funding had become so tight that it was no longer in a position either to invest in the Courtauld or bale it out. If no endowment is raised, the institute would be obliged to merge with another college. The institute's director, Professor-Eric Fernie, said it is as yet unclear whether there are sufficient funds.

McKinsey's report said that independent college status would require an initial £25million, and a further £15million over the next 10 years with an additional ? 15million to proceed with projects and to capitalise on having its own worldclass art collection.

"The figure of £55million would give us everything we could ever want - the sum needed to establish independent status, however, would be much lower," said Professor Fernie. The proposal is subject to approval at a university council meeting on 6 December.