Financing Difficulties Of Non - Governmental Institutions Of Higher Learning And The Countermeasures

With 30 years of development, the non-governmental universities, as an important part of higher education system in China, made great contributions to promoting the popularization of higher education. Compared to governmental universities, the private universities carry out the school-running model of self-support and self-financing fund, without of the government financial subsidies.The shortage of educational fund has become the important factor restricting the development of private universities. At present, we should implement the guideline that leading role of market and the supplementary role of the government support, build the financial modes of taking the market as the core throughout the innovation of financial channels It plays important and practical role for widening Funds-raising channels and perfect raise measures of the private universities by studying and learning the private colleges’ways of success and their financial experiences of developed countries, like America and Japan and so on.This article is divided into six chapters. The paper is typed to foreign financing of private universities and the relevant financing documents, information, data for the study, the relevant data analysis, synthesis, overview, by induction, analogy method is proposed for China’s private new ideas for financing education.Chapter one introduces the main significance of this research, background, significance, the relevant issues on the domestic and international research results, thought, methods, and the main creative point.Chapter two studies on the theories about financing of the private universities, mainly expounds the general financial theory and discuss the relevant theories such as public goods theory, human capital theory and educational industrialization theory, to find theoretical support for the financing of private universities. On the basic of the analysis on the five modes, the current problems existed in the running process of the financing mode in the private universitiesChapter three analysis the financing predicament of the M private university. Firstly M private university is simple to be introduced, secondly we take construction financing of the new campus of M private university as an example, by analyzing the financial situation, and draw the conclusion that the tuition is the main income of M private university which is received from government funding and a few social donation, finally it analyze the financing difficulties, such as our social donation mechanism is not well-constructed the government’s financial aid policy is not perfect, banking credit policy is not in details and it is diffcult to circulate funds through market. Besides, M university pays not enough attention to the finance and it is short of professional aid.The forth part, we concluded that the private universities of America and Japan can fully use the financing channel, such as government funding, ruition and incidental fees income, social donation, sales and services, based on the analysis. The differences in finances of the both countries and of their causative factors was analyzed based on the study of the policy, the economic factor, the social factor, the financial factors and the comparative study of the development course and the financing channel between the Chinese and Foreign private universities will be presented.Chapter five studies from the experiences of private universities in the developed countries and this thesis gives some detailed advises for the problem of the M private university and all the private universities in China on the expanding channel of financing which viewed from government funding, policy support (financial aid, property right, credit, tax preference) social donation, capital market and the private universities.Chapter six summarizes the full text studies, and point out the deficiencies.