Total views : 232

Starting a Financial Endowment by a Nonprofit Organization in Higher Education


  • Russian State University of Tourism and Service, Moscow, Russia


Objectives: The article presents the findings of the study that analyze the functioning and development of the financial endowment of nonprofit organizations and a review of the legislative framework, regulating the endowment formation, the parties involved in this process and its procedure. Methods: The methodological basis was formed by the principles of system analysis and synthesis when studying the system of higher education and its segments, as well as subjects and components of nonprofit organizations financial endowment in higher education. Findings: An organization should create an endowment fund for its successful operation as it can provide a stable and growing source of funding for infrastructure, social projects, etc. Compared to other financing systems, endowments are the most stable; their legislative framework ensures transparency of the fund activities and control over the investments spending. Application/Improvements: Endowment funds improve strategic planning, providing financial support to nonprofit organizations. The largest endowments in the world are estimated at tens of billions dollars, and their official history spans several centuries.


Beneficiary, Competition, Endowment, Endowment Fund, Fiduciary Management, Fund, Fundraising, Nonprofit Organizations.

Full Text:

 |  (PDF views: 238)


  • Federal Law of the Russian Federation of No. 275-FZ. On the procedure of formation and use of the endowment of nonprofit organizations; 2006 Dec 30.
  • Bokareva EV, Chernikova LI, Egorova EN, Egorova SK. Functioning and development of target capital by nonprofit organizations. Asian Social Science. 2014; 10(23):223–30.
  • Shitkov SV. The procedure of registration of endowment funds in higher educational institutions under Russian legislation. In: Theory and practice of endowment funds operation in Russian higher education: Collection of practical recommendations for the participants of the International Scientific-practical Conference, 2010 Apr 27–29; 2010.
  • Morozov VYu, Khavanova NV, Bokareva EV. Formation of the endowment. Services in Russia and Abroad. 2016; 10(62):20–30.
  • Bokareva EV. Analysis and evaluation of the endowment operation in Russia. Financial Analytics: Problems and Solutions. 2013; 21:7–10.
  • Kutyeva DA. Multidimensionality of the funding sources of nonprofit organizations. Issues of the Modern Economy. 2013; 4(48):195–8.
  • Commentary on the ranking of endowment management companies for 2015 [Internet]. [cited 2016 Sep 05]. Available from:
  • Subanova OS. Endowment funds of nonprofit organizations: the formation, management and use. A monograph. Moscow: KURS; 2011.
  • Donors Forum site [Internet]. [cited 2016 Sep 05]. Available from:
  • Kozarezenko LV. Alternative sources of human development financing. Krasnoyarsk Science. 2014; 4(15):93–121.
  • Grishchenko YuI. Optimization of the capital structure in nonprofit organizations. Nonprofit Organizations in Russia. 2013; 1:46–9.
  • Zavgorodnyaya VV, Khamalinsky IV. Endowment: Its role and potential for financing of educational institutions. Audit and Financial Analysis. 2015; 2:231–6.
  • Lavrova S. Some aspects of establishing a university endowment fund: practical tips. In: Theory and practice of endowment funds operation in Russian higher education: Collection of practical recommendations for the participants of the International Scientific-practical Conference - Theory and practice of endowment funds operation in Russia, Moscow State Institute of International Relations, The Ministry of Foreign Affairs of the Russian Federation. 2010 Apr 27–29. Biryukova ES, Degtereva DA, Stelmakh AV, editors, Moscow: MGIMO; 2010.
  • Kirilina NA, Morozova LS. The essence and characteristics of competition in the market of educational services. Current Issues of Economic Science. 2010; 15(2):182–6.
  • Larina LR, Baigulov RM. The control strategy for an endowment of a nonprofit organization. Bulletin of the University (State University of Management). 2014; 20:118–22.
  • Zaitseva NA, Chernikova LI. Features and prospects in the development of the services provided in the field of travel insurance. Middle East Journal of Scientific Research. 2013; 16(7):996–1002.
  • Morozova LS, Ananjev AN, Morozov VY, Havanova NV, Litvinova ЕV. Influence of tourism industry development on the regional labour market (on the example of the Yaroslavl region). Review of European Studies. 2015; 7(3):51–65.


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.