Funding Source Diversification in the Educational Nonprofit Sector: Saudi Arabia versus International Experiences

Abstract

This study aimed to address the scarcity of research comparing funding sources of the educational nonprofit sector in Saudi Arabia with international experiences, despite the sector's expanding role and growing financial needs. It sought to identify the reality of funding sources in Saudi Arabia, the United States, and Singapore, reveal similarities and differences diversification mechanisms, and determine possible benefits for the Saudi context. A comparative analytical documentary method was adopted, relying on official reports Issued by government bodies and relevant organizations in the three countries. The findings showed that Saudi Arabia possesses a diversified funding base including government support, donations, endowments, investments, self-generated revenues, and partnerships, although their effectiveness remains linked to activation, while the American experience presented a model based on tuition fees, grants, research contracts, and endowment returns, and the Singaporean experience combined government support with matching funding, tax Incentives, and institutional philanthropy. The study concludes with recommendations for an integrated funding diversification strategy, activation of educational endowments, expanded partnerships, and enhanced self-generated revenues consistent with the Saudi environment.