Endowment Funds By Ex. Students of Universities


The government college university has said it will provide financial assistance to its students despite all constraints.
Vice Chancellor Prof. Dr. Khalid Aftab while addressing members of the higher education commission said that in the wake of ongoing financial crunch, public sector universities were in dire need to generate money from their own resources for survival
He said universities around the world were establishing their endowment funds of billion of dollars with the help of their alumni. Harvard University has an endowment fund of about $37 billion and even a small university of Virginia has an endowment fund of        $ 3.219 billion”, he said (The NEWS)
Definition
Endowments are very complex. They usually consist of many—sometimes thousands—of different funds. Most of these funds are subject to restrictions that donors impose and that institutions are legally required to uphold. Endowment funds are managed to provide a permanent source of income to support the teaching, research, and public service missions of institutions. (Facts about College and University Endowments)
How do university endowments work?
Endowments represent money or other financial assets that are donated to universities or colleges. The sole intention of the endowment is to invest it, so that the total asset value will yield an inflation-adjusted principal amount, along with additional income for further investments and supplementary expenditures. Typically, endowment funds follow a fairly strict policy allocation, which is a set of long-term guidelines that dictates the asset allocation that will yield the targeted return requirement without taking on too much risk.(How do university endowments work?)
Restrictions
Donors typically restrict their gifts to specific purposes such as establishing student scholarships, creating professorships, instituting new programs, or constructing new facilities. Some donors provide unrestricted gifts that enable institutions to support general operations or special initiatives. Endowments typically grow over time through a combination of donations and investment returns. (Facts about College and University Endowments)
Guidelines
Most endowments have guidelines that state how much of each year’s investment income can be spent. For many universities, this amount is about 5% of the endowment’s total asset value. Because some of the more coveted schools, such as Harvard, have endowments worth billions of dollars, this 5% can equal a large sum of money.   (How do university endowments work?)
At many institutions, most endowment spending is dedicated to donor-restricted purposes that institutions are legally bound to uphold. At institutions with large endowments, endowment spending contributes significant resources toward their operating budgets; in some cases, it is the largest source of revenue for the institution. Thus endowment spending helps to keep tuition below the level that would be necessary if tuition alone paid the true cost of educating a student. Institutional governing boards, government agencies, and institutional advisory boards help to ensure that endowment income is spent for its intended purposes. (Facts about College and University Endowments)
Uses of endowments
Student Financial Aid
Teaching (Faculty chairs or professorships)
Research and Innovation
Scholarships
Games
Libraries
New Programmes
I think that most of the students from the universities of Pakistan are now on very good posts and especially from old universities. Then why they are not contributing for their universities? If they respect their teacher’s they can make funds in their names .To pay tribute to their teachers I think that there will be no other better way than this.

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