1. FINANCING UNIVERSITIES THROUGH ENDOWMENT: INTERNATIONAL EXPERIENCE
College of Business and Finance
Dr Adel M. Sarea

2. Previous studies & Historical Tracking
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

3. 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

4. Endowments tend to be organized a:
Public charity
Private foundation
Trust

5. Endowment Types
Unrestricted
restricted

6. 1
Unrestricted endowments are assets that can be spent, saved, invested and distributed at the discretion of the institution receiving the gift.

7. 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

8. Aims 2

9. Aims
To increase the awareness of financing universities through endowment
To share the international experience

10. 3 trillion Need for the study
Source: The Global Islamic Finance Report (2017)

11. Need for the study 3rd Economy
Financing universities through endowment
Sharing international experience

12. Previous studies
Previous studies shown the need for exploring and understanding the waqf concept, and
Financing universities/research through endowment in Muslim and non- Muslim Countries, and
Sharing international experience

13. 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

14. 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

15. ENDOWMENT SIZE (BILLIONS)
University/COLLEGE (MONEY BEST COLLEGES RANK)
ENDOWMENT SIZE (BILLIONS)
1. Harvard University
$35.88
2. Yale University
$23.89
3. The University of Texas System
$25.43
4. Princeton University
$20.99
5. Stanford University
$21.45
6. Massachusetts Institute of Technology
$12.43
7. The Texas A&M University System & Related Foundations
$11.10
8. Northwestern University
$9.78
9. University of Pennsylvania
$9.58
10. University of Michigan
$9.73
Source:

16. Endowment
Gate

17. Bill Gates

18. Bill Gates
$44 billion Endowment

19. Alumni Donors

20. John W. Kluge – Columbia University
$500 million

21. Sanford I. Weill – Cornell University
$275 million

22. Robert Woodruff – Emory University
230 million

23. Edward P. Bass – Yale University
$200 million

24. John D. Hollingsworth, Jr. – Furman University
$115 million

25. Area of Future Research
Endowment and Islamic finance: the missing link
The 3rd economy
Waqf could provide further insights regarding the possibility to establish the Endowment fund

26. Thank You
Q & A