Universities are becoming increasingly expensive to operate. In some countries, money from taxation has met these costs. However, this is not always enough to maintain the quality of universities.

Nowadays, there is a rise in the operating cost of tertiary institutions. Some nations use funds from taxation to finance

this

cost, but it is insufficient to keep up with the accepted standard of universities. In years to come, universities can be financed using the internally generated funds as well as returns from investments.

Firstly

, educational establishments can finance themselves using the internally generated funds. These funds include tuition, library fees, money generated from certificates, alumni as well as cash collected from the public use of the university's facilities.

For instance

, the university halls/auditorium can be used by the public for their events during weekends and fees are paid in return.

Additionally

, varsities can make a substantial amount of money by leasing out spaces to banks and other establishments to carry-on businesses within the campus.

For example

, the presence of banks and cafe on the varsity premises. In fact, apart from the generated fund, the school stands a chance to benefit from the company's corporate social responsibility.

Also

, another point to consider in the ways to fund an institute is by investments. Educational institutions can generate the financial resources from the return on investments. Colleges can venture into capital market trading. An example of

this

, is the participation of an educational institute in the forex market. More

also

, funds can be kept in a fixed deposit account for a reasonable period of time in order to generate the targeted interest for smooth running of the school.

Furthermore

, universities can venture into a real estate business to

also

generate funds.

For instance

, hectares of land can be purchased by the school for lease or outright sales to interested buyers. To sum up, returns from the Strategic investments can effectively run an educational establishment. In conclusion, funding of varsities of a standard quality requires substantial funds which cannot be achieved solely from the cash from taxation. Going forward, schools can be financed using internally generated revenues as well as returns from investments