Objective 1

Public higher education institutions are increasingly challanged by cost pressures that

are high and rapidly rising. Currently, sources of income in higher public institutions are mainly

goverment, tution fees, and reseach grants. To maintain competitive advantage and to ensure

long term survival and growth, public higher education institutions must access an increasing

amount of external sources.

Nearly all national and state government are tighting their budget and providing few

funds to the education sector. Higher public instutions including local and overseas universities

such as Universiti Kebangsaan Malaysia (UKM), Universiti Putra Malaysia (UPM), Universiti

Islam Antarabangsa Malasysia (UIAM), Harvard University, Yale University, and Texas

University has already created their own financial development from the philantrophy concept

and fundraising. The main contribution of the financial development are from the direct

contribution, charity and campaign, and also sevice income.

Based on the research, there are too many approach in philantrophy and fundraising

contribution in universities such as donation, salary deduction, and also bussiness transaction.

Affinity diagram has been used to organizes the large number of faundraising’s approach into

their appropriate categories such direct contribution, charity and campaign, and services

income. The categories choosen are from the brainstroming session with the supervisor.

From Table 1, direct contribution has become the most likeable way in money

contribution at higher learning institutions. Universities website has displayed all of the

fundraising approach below the direct contribution such as salary deduction, alumni’s fund,

direct donation, and online donation. Service incomes become the second likeable appraoch of

fundraising after the direct contribution that provide sale of mineral water, tuition, day care

center, and machine analysis. Meanwhile, waqf land, alumni’s charity, books selling, and Rm
1’s campaign below the charity and campaign category below the least likeable approach as

only three universities had applied them as their income generation.

Table 1

Income generation  Direct  Charity and  Services incomes  Motivational

method contribution campaign factor
 Mineral water
 Salary  Rm 1  Tuition  Tax exemption
deduction  Waqf land  Business
 Alumni  Alumni charity transaction
 Direct donation  Books selling  Day care center
 Online donation  Machine analysis

Organization
LOCAL
UNIVERSITIES
UTM II III
UKM III I
USIM III
UPM II I
UIAM II I I I
USM I
OVESEAS
UNVERSITIES
HARVARD II
YALE II
TEXAS III
STANFORD II
PRINCETON I
TOTAL 20 4 5 2

Pie Chart 1
 Based on Pie Chart 1, direct contribution become the most favored income generation

method among universities with 69 percent, followed by services income with 17 percent and

lastly charity and campaign with 14 percent only. There are motivational factor that contribute

to the successfullness of the fundraising that is tax exemption. Generally, tax exempt means

free from federal income taxation. Universiti Kebangsaan Malaysia (UKM) and Universiti

Islam Antarabangsa Malaysia (UIAM) had provide tax exemption to their fundraising donor.

Pie chart 2

According to Pie Chart 2, income generation method among local universities, direct

contribution become the most preferable fundraising approach with 58 percent involving

Universiti Kebangsaan Malaysia (UKM), Universiti Sains Islam Malaysia (USIM), Universiti

Putra Malaysia (UPM), Universiti Sains Malaysia (USM), And Universiti Islam Antarabangsa

Malaysia (UIAM). In the meantime, service income become the second prefeable fundraising

approach with 26 percent and charity and campaign become the least preafeable with 16

percent. Universiti Teknologi Malaysia (UTM) and Universiti Islam Antarabangsa Malaysia

(UIAM) both using service income and charity and campaign as their income generation
method, while Universiti Putra Malaysia (UPM) had added service income as their method in

income generation in university level.

Pie chart 3

Based on pie chart 3, income generation method among overseas universities, direct

contributions has been hghligted as the most appealing fundraising appraoch with 90 percent

including almost overseas universities that has been selected as universiti kajian such as

Harvard University, Yale University, Texas University, and Stanford University. As for

Princeton University, their fundraising only focus on the charity and campaign which contribute

to 10 percent from the total of income generation method among overseas universities.

Currently, most of the available philanthropy concept in higher learning institute are tied

at the university level. Most of them are using direct donation as their most favored method in

income generation. None of the universities discussed above are doing the philanthropy and

fundraising at the faculty level as most of the model only suitable to be implement at the

university level.