IMPACT OF ENDOWMENT FUND IN THE FINANCIAL SUSTAINABILITY OF AN ACADEMIC INSTITUTE: A CASE STUDY OF EDWARDES COLLEGE OF KHYBER PAKHTUNKHWA PAKISTAN
Endowment fund of any institute play a very significant role in the sustainability of its financial strategy. Edwardes College being the premier and self sustained institute of Khyber Pakhtunkhwa raised its Endowment Fund in cash flow from 02 (two) millions Pakistan rupee to 103 (one hundred three million) in a short span of two years. This study exposes strategies adopted to enhance the Endowment Fund of the College. Major focus kept on saving assets within its own resourses by curtailing extra expenses, generating funds from friends of the college and contribution from the different organizations. Edwardes College with its 116 years of glorious history spread over 13 acres of land offers undergraduate and graduate programs in 18 different departments to its 3000 students with 106 faculty members and 105 non teaching staff. College runs under the Financial Rules duly approved by the Board of Governors to ensure efficient and effective application of resources of the College.
The outcome of the study is that Endowment fund is extremely important and necessary for any academic institute. Study also suggests that principal amount must not be taken from Endowment in any circumstances; however, profit earned may be spent on institutes salaries cost, employment benefits, operational cost and capital expenditures. Study also suggests that if endowment fund’s annual profit comes to a level where it sustains 50% of the staff salary load and 50% of capital expenses then institute is considered to be in safe financial position. At this point, fee decreases instead of annual increase.