?
The Development of the University via Development of the Endowment
The concept of the university endowment is rapidly developing in the academic landscape of Russia. While endowments were established for a selection of the largest universities over decade ago in Moscow (Skolkovo Institute of Science and Technology 53,5m EUR, Moscow State Institute of International Relations 19,2m EUR, Higher School of Economics 10,5m EUR) and Saint Petersburg (European University at Saint-Petersburg 19,8m EUR, Saint Petersburg State University 18,4m EUR), the regional medium-size universities are just starting to adopt the endowment concept. The essential question for such universities is: Where and how to start an endowment? In this paper we will describe the case of the quick and efficient endowment setup at a medium size regional university, Tambov State University. Within one year the university has created a notable endowment from scratch; started fundraising activities, launched an alumni relations office, initiated an investment portfolio and acquired the first financial results. We will cover: how the university managed to setup the professional endowment system in a disadvantaged region in such a short time; what has been done to achieve the impressive results; and what was the cost for the university? In addition, we will cover the following aspects: (a) how a regional university can rethink their strategy? (b) where to learn about best practices? (c) is it possible to launch a professional endowment with just one devoted person? (d) how to alter the financial culture at the university? (e) What are the roles of the university rector and the a region government in the project’s success? (f) How to define success and failure and how do these evolve with time? (g) What are the regional specifics? (h) Competition vs cooperation with other universities. Our study provides an insight into the opportunities and challenges of academic fundraising in Russian universities. The Tambov State University case can be used as a best practice scenario for universities wishing to launch their own endowment, particularly for those located in the less economically successful areas.