New Delhi: The Indian Institute of Technology (IIT), Delhi will soon rope in professional fundraisers who have helped world-class institutes such as Cornell, Harvard and Stanford to raise money for their endowment funds.
The IIT-Delhi endowment fund already has an initial commitment of Rs 250 crore from its alumni and nearly 20 corporate leaders who were part of the institute. Flipkart founders Binny Bansal and Sachin Bansal, both alumni of IIT-Delhi, are contributing to a major share of this fund.
The institute aims to take its investment to $1 billion in the next six years.
IIT-Delhi Director V. Ramgopal Rao said Friday, “We are going to approach professionals who have helped institutions like Cornell raise fund from its alumni and other sources. They will be able to help us raise funds from other sources as well because we cannot rely only on our alumni.”
Financial freedom to conduct research
The endowment fund of IIT Delhi is a first-of-its-kind funding model developed by an Indian institute. Many universities in the West such as the Cornell University, Stanford University and Harvard University have already been following this model for several years now. The money is used for development work and student scholarships.
An endowment fund is an investment trust established by a foundation that makes continuous withdrawals. The capital in endowment funds, often used by universities, nonprofit organisations, churches and hospitals, is generally utilised for specific needs or to further a company’s operating process.
For IIT Delhi, this new fund will bring in more financial freedom to conduct research, start new centers of excellence and hire scholars. Director Rao also informed that many other IITs are taking a cue from Delhi and trying to work out a similar model.
He added that IIT-Delhi is also working on proposals to approach corporates other than those who are its alumni and have at least $100 billion to invest money in its endowment fund.
The endowment fund will be managed by a committee consisting of IIT-Delhi faculty members and alumni who are also its funders.