In order toward a world class university, fund availability is really essential. Usually, a well-known university has 3 funding sources; government, research fund from public or private institutions, and self funding. Self funding especially consists of tuition fee from students, business unit of university, and endowment fund. Here, I want to talk more about endowment fund. Endowment fund is a fundraising program where fund gathered from alumni and donator is invested optimally. Most of world top ranking universities manage endowment fund in large amount. National Association of College and University Business Officers (NACUBO) researched about endowment study in 2008 and released that Harvard university manages endowment fund more than 36 billion US$, Stanford manages 17 billion US$, and MIT has 10 billion US$. By large amount of fund, they can do anything, to build campus facilities, to do research, to produce patent, books, and international publications. We’re absolutely not fair that University of Indonesia (UI) compare to those universities. Harvard introduced this program when it was built. But let we see NUS, which has the highest endowment fund in Asia, manages 774 million US$. How about UI? In 2007 UI owns Rp. 840 milyar or 90 million US$, -and thank to Prof. Gumilar Soemantri for his contribution to increase UI endowment fund-
I guess that amount can be increased by seeing UI graduates resources. There are many distinguished graduates produced by UI. They play important role in many sectors, and as we know there are many entrepreneurs, leaders in multinational company, distinguished politicians, and more. It is a challenge for UI and ILUNI (UI alumni bond) to maximize those resources. UI should encourage alumni to follow in developing campus and to participate in increasing the endowment fund. The university may not hope more to get good participation from public (out of UI citizen), although the fund is open for everyone. But, the university might have high expectation to their alumni to get involved.
Loyalty. Yup, maybe it is the most critical challenge. We might not have high expectation such as Stephen M Ross, an U Michigan graduate, gave 100 million US$ to his university, or such as David Tepper who contributed 75 million US$ for Carnegie Mellon University. But at least, we hope UI alumni can show more their loyalty on years ahead.
Currently UI offers two programs to increase endowment fund, there are trust fund and deposit fund. A trust fund is not limited, and each fund given to UI becomes the endowment fund. Donator could not take the fund that has been given. In reverse, a deposit fund, a donator could take the fund after 4 years and get interest rate about 5% annually. Minimal amount of fund for this program is Rp.2000.000.-. Those programs are valuable innovation in order to encourage alumni to participate in developing campus. Besides in 2008, UI held a major homecoming event ‘Alumni Pulang Kampus’, which proved successful in gathering alumni from almost 50 years.
Anyway, as UI graduates, whoever of you, whatever your background, and wherever you work….let come join develop, love, and contribute to our beloved campus. No matter how bit your contribution.
“ the factors I believe contribute the most to the excellence and competitive success of U.S. higher Education include:…a tradition of philanthropy, fostered by U.S. tax law, encourages alumni and others to support our colleges and universities..” – Charlest M Vest, the former president of MIT