The Social Cycle Impact of Alumni Contributions Toward University Endowment Income

The National Higher Education Strategic Plan (PSPTN) is designed for empowering national higher education. This plan aims to provide autonomous power to universities in order to manage their operations. To achieve this, universities need to have the capability to gain targeted financial resources for bearing their management and development operation costs. One of the key financial strategies under the PSPTN is to increase university endowment income through alumni contributions. However, alumni willingness to make contributes has been proved to fluctuate and be dependent on several factors. In this study, five factors of alumni contribution were analyzed namely: financial management, self-identity, external influences, university management and community-university networks. These factors were then analysed to produce indicators known as social cycle variables. These variables were purposely formulated to measure the changing impact of the factors highlighted above on alumni’s financial contributions,, before applying regression test methodology to the same. The results reveal that social cycle variables significantly influence university endowment income at a level of between 3 to 4 per cent. This study thus reveals how important it is for universities to commit to further research on alumni contribution channels, especially to negate potential future financial deficits.