Research On Changes Of Fund-raising Of Chinese Colleges And Universities

Chinese tertiary education system has developed dramatically with the rapid development of Chinese economy since 1978 reform and opening up. At the same time, there also has been a profound evolution for the funding of universities institutes from traditional national government funding in planned economy era to multiple resources funding in nowadays market economy environment. However, with evolution of both economic and educational systems as well as the fast growth of universities, the funding of these institutes has become a noteworthy bottle necks that restrict the development of Chinese tertiary education in recent years. According to above background, it is necessary for the universities to study, investigate and identify an appropriate solution to solve lack of funding for universities in short time. This article focus on funding model and also employ knowledge from other areas, which is going to establish a framework for analyzing university funding model evolution.Universities fund-raising, to be more specific, the activities which colleges and universities raise education funds. Fund-raising channels and methods should base on each school's specific condition. Regarding of Chinese overall economic and institutional environment, fund-raising is not only feasible but necessary. Similar characteristics between higher education and Quasi-public goods have enabled some theories such as human capital theory, economics cost-sharing theory and economics induced changes theory to provide the solid theoretical foundation of fund-raising activities.Since the foundation of People's Republic of China, Chinese colleges and universities have experienced a gradual evolution from unification of funding to diversification of fund-raising. Actually, it is the several major factors such as the birth of financial management, the expansion of higher education and the changes educational financial systems that have led to the changes. All of these have further resulted in the inadequate education finance and changes of education finance, which in turn, poses great impact on the fund-raising methods and channels.The result of this research indicated that the government funding will play an important role in of tertiary education institutes, as well as the service and sale of universities. The capital market and donation will also be the other two major funding resources for universities in future. Therefore, it would be important to study and improve the funding theory, process and mode, which help Chinese universities funding model to become more scientific and rational in a manner that could promote and keep the development of universities in China.