University of Pretoria reigns supreme in SA’s fund race

The University of Pretoria leads among South African institutions in terms of the highest funds. The University of South Africa and Stellenbosch University follow closely.

Most universities have endowment funds consisting of financial assets from charitable donations, usually given by former students.

These endowments play a crucial role in supporting research, teaching, and various academic and sporting activities, according to the Daily Investor

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University of Pretoria is the no 1 highly funded University in SA

The University of Pretoria tops the ranks following the South African fund rankings revealed in reports.

Former students usually provide these endowments, which help finance research, teaching, and various academic and sports activities

Most funds are designed for indefinite management, relying solely on their ability to generate income for distributions while safeguarding the principal amount.

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The University of Pretoria holds the highest amount of funds at R14.81 billion, along with the largest endowment of R7.42 billion.

Other universities with substantial funds include the University of South Africa with R12.7 billion, Stellenbosch University with R8.6 billion, and the University of Cape Town with R8.5 billion.

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However, it’s worth noting that these amounts are relatively modest compared to the endowments of leading American universities.

What is the funding used for?

University endowment funds provide crucial financial support for higher education institutions. They sustain the institutions’ core missions: teaching, research, and public service.

Apart from a general university endowment, colleges and universities often manage various restricted endowments aimed at funding specific areas within the institution. These areas might include professorships, scholarships, and fellowships.

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Types of endowments

• Term endowments often require the principal to be spent only after a specific period or event.
• Unrestricted endowments allow the receiving institution to use, save, invest, and distribute the assets as they see fit.
• Quasi-endowments are donations intended for a specific purpose. Typically, the principal remains intact, while earnings follow the donor’s instructions.
• Restricted endowments maintain the principal indefinitely, with earnings spent according to the donor’s wishes.

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