Comparative Study Of The Financing Channels For Private Colleges

Private colleges and universities have been important high-level education institution running forms with unique advantages in cost control, operation efficiency, the attraction of students, and service meeting the needs of the society. However, the fund that the institution runs with decides the blood-making function of the institution and limits the development of the institution. In most developed countries, the successful experience of fund raising system plays a significant role. It makes significant sense for China's private institutions by studying and learning the experience that the private institutions in developed countries have accumulated in running fund financing to improve the system and widen the financing channels running fund.This article is divided into six chapters. The main parts include Chapter Three, the comparative study of private institution running fund financing channels between United States and Japan; Chapter Four, the demonstration of China's private institution running fund financing channel; and Chapter Five, financing model. In order to outline the characteristics and determinants of financing channels, four elements, politics, economics, society and finance, are listed to frame the theory. Each element paralleled with the comparative study analysis of the four financing channels as government allocated fund, tuition fee income, donation from the society, and goods sales and service revenue.In chapter three, this article analyze and summarize the financing situation in U.S. and Japan, thus gets the conclusion that the four main financing channels in these countries have been concluded as government allocated fund, tuition fee income, donation from the society, and goods sales and service revenue. And based on the four elements, politics, economics, society, and financial, analysis, the characteristics of private institution financing channel of the two countries are concluded as that government pays attention to litigation to provide legal grounds for financial assistance to private institutions, the tax exemption systems motivates the donation to private institutions, the private institutions pays attention to finance with the assistance of alumni and the goods sales and service of private institution has been industrialized.In the foundation of analyzing the developing history of private higher universities in China and summarizing five main capital resources among these, chapter four reaches the conclusion that the chief source is the tuition fees for private universities. Afterwards, through the analysis of changes per student in ordinary higher education students'expenditure, tuition fees, national financial education funding, society donation. expenditures from raising money and residents'savings account, we find that the graduates tuition fees accounts for 50% of ordinary families'saving in bank if calculates as annual 15,000 which takes up for 91.4% education cost. This chapter indicates that the over-high tuition fee of private universities is not fair for education and will not be beneficial to the development of these universities. It also gets the differences in private universities between China and oversees nations, that is, government's financial support, policy support, donation circumstance, financial environment of investment activities and other contents, on the basis of analyzing policy factor, economical factor, social factor and financial factor.Chapter five first verifies that higher education is sub-public commodity, and therefore tuition fee is not totally education service price and it should be lower than university's operation cost. To ensure higher education's regional publicity to provide service as charity business, its cost compensation depends on two aspects, one is external investment, which are from government funding and society donation; another is tuition fee, which depend on the revenue from providing higher education service. With the foundation of analyzing Engel index, national income distributing structure, potential of society education outcome and cost sharing theory, it concludes that private higher education as the sub-public commodity, its funding should be burdened jointly by students'families, national finance and society, and establishes ideal funding allocation formula of private universities. At last, it addresses financing approaches for private education institutes by the systematical analysis method. That is to say making proficient use of combining long-term saving and loan market and security market, direct and indirect financing, which led by university and supported by government and multiple funding method to improve the financing channels. This article tries to find the financing channel these universities should return to by theoretical analysis.