Mechanism of Determination of Effectiveness of Spending Assets of Endowment Funds on the Basis of Mathematical Models

Purpose: Economic problems of the system of education were the object of interest of classics of economic science--A. Smith and A. Marshall--who viewed education as a source of public capital, and acquired skills and competences--as a part of national wealth. These ideas were further developed in the theory of human capital by T. Schultz, G.S. Becker, G. Psacharopoulos, P. Teixeira, and R. Solow. At that, specifics of modernization economic processes in the sphere of education, peculiarities of modern functional and financial state require conceptual consideration and provision of development of working mechanism of effectiveness of spending assets of endowment funds. The purpose of this paper is to determine the mechanism of effectiveness of spending assets of endowment funds on the basis of mathematical models. Design/methodology/approach: The paper offers a mechanism of determination of effectiveness of spending of endowment funds. Findings: Effectiveness of an endowment fund's effectiveness depends on the results of fund-raising activities, supporting relations with donators, and financing of targeted programs and directions of activities. This information is key information during the determination of results of endowment fund's activities for current and potential donators. That is why it should provide reports in the order of formation of endowment, received revenue from trust management, and direction of usage of revenues from endowment, for which a donator has given his assets, on a regular basis. Originality/value: In the modern system of higher education, the issue of search for new sources of financing for the purpose of improvement of quality of education and educational process, growth of wages of academic staff, attraction of foreign lecturers and specialists with practical experience of work from various spheres of production, and increase of stipends of the best students remains actual. The paper offers a mechanism of determination of effectiveness of spending of endowment funds.