Financing Universities Through Endowment: International Insights
Delve into the significance of endowments in financing universities, exploring types of endowments, their management, and the impact of international experiences. Dr. Adel M. Sarea presents a comprehensive view, emphasizing the need for understanding endowments in both Muslim and non-Muslim countries.
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FINANCING UNIVERSITIES THROUGH ENDOWMENT: INTERNATIONAL EXPERIENCE College of Business and Finance Dr Adel M. Sarea
Agenda Aims, endowment types Need for 3rd Economy Previous studies & Historical Tracking Financing universities through endowment Sharing international experience ( Top 10) Alumni Donors Area of Future Research Q & A Adel M. Sarea Your name
What is an endowment? An endowment is a donation of money or property to a non-profit organization Donations Transfer of money Also for religious establishment
Endowments tend to be organized a: Public charity Private foundation Trust
Endowment Types Unrestricted restricted
1 Unrestricted endowments are assets that can be spent, saved, invested and distributed at the discretion of the institution receiving the gift.
2 Restricted endowments have their principal held in perpetuity, while the earnings from the invested assets are expended or used per the donor s specification
Aims 2
Aims To increase the awareness of financing universities through endowment To share the international experience
Need for the study trillion Source: The Global Islamic Finance Report (2017)
Need for the study 1. 3rd Economy 2. Financing universities through endowment 3. Sharing international experience
Previous studies Previous studies shown the need for exploring and understanding the waqf concept, and Financing universities/research endowment in Muslim and non- Muslim Countries, and Sharing international experience through
Historical Tracking The first religious waqf, the Mosque of Quba in Medina created during the Prophet s lifetime for religious purposes The former Ottoman Empire successfully practiced cash waqf for a very long period At present, In the Middle East for example, countries like Bahrain, Kuwait, Oman, UAE, and Saudi Arabia have been practicing cash waqf over a relatively long time In Asia, cash waqf has also gained acceptance. For example the Malaysian National Fatwa Council passed the fatwa that permits cash waqf in 2007
Historical Tracking; Education Endowments/Waqf (con t) The History has shown that waqf has benefited various education institutions, i.e. mosques, universities, schools, colleges, etc. 10 Universities With the Biggest Endowments/Waqf
University/COLLEGE (MONEY BEST COLLEGES RANK) ENDOWMENT SIZE (BILLIONS) $35.88 1. Harvard University $23.89 2. Yale University $25.43 $20.99 3. The University of Texas System 4. Princeton University $21.45 5. Stanford University $12.43 6. Massachusetts Institute of Technology $11.10 7. The Texas A&M University System & Related Foundations $9.78 8. Northwestern University $9.58 9. University of Pennsylvania $9.73 10. University of Michigan Source: http://time.com/money/4194424/richest- colleges-2015-endowment-report/
Endowment Gate
Bill Gates $44 billion Endowment
John W. Kluge Columbia University $500 million
Sanford I. Weill Cornell University $275 million
Robert Woodruff Emory University 230 million
Edward P. Bass Yale University $200 million
John D. Hollingsworth, Jr. Furman University $115 million
Area of Future Research Endowment and Islamic finance: the missing link The 3rd economy Waqf could provide further insights regarding the establish the Endowment fund possibility to
Thank You Q & A
