FINANCIAL SECURITY OF HIGHER EDUCATION INSTITUTIONS: WORLD TENDENCIES AND UKRAINIAN REALITIES

Abstract

The article systematically analyzes the main risks to the financial security of institutions of higher education in Ukraine in the current conditions, in particular significant reduction of the state expenses for higher education, insufficient overall financing, insufficient level of financial autonomy and diversification of educational institutions’ sources of income, reduction of the number of students, and resigning of highly qualified personnel. The ways of increasing financial stability and autonomy of higher educational institutions through the creation of own investment funds, involvement of the business sector and grant financing are proposed. The world experience of effective financing of higher education, including the functioning of the endowment funds, has been analyzed. The development of the endowment funds at Ukrainian educational institutions will strengthen financial security through the accumulation of funds for the implementation of necessary university programs and projects, renovation of its premises and equipment, the availability of embedded mechanisms for preventing corruption, theft of financial and non-financial resources, or their usage for the own benefit by management. The expediency of the development of the endowment practice in the Ukrainian system of higher education and the conditions under which innovation and productivity growth will provide higher returns than political connections, preferences and status have been reasoned.