TAIPEI (TVBS News) — The presidents of Taiwanese universities face a new challenge despite their impressive resumes: they must demonstrate their ability to secure donations.
The declining birth rate and limited revenue from student tuition threaten the continued operation of higher education institutions.
Fu Jen Catholic University is among the top three private universities in terms of funds raised, the school's president, said Vincent Chiang, president of the Fu Jen Catholic University.
"However, the process of attracting donations remains challenging due to the existing biases in Taiwan's system," he added.
In Taiwan, according to Chiang, public universities can receive a 100% reduction in taxes on donations, while private universities only receive a tax reduction of 25% to 50%.
Despite a near 94% enrollment rate, Fu Jen Catholic University still faces difficulty generating sufficient revenue from tuition and fees to cover new equipment and facilities costs.
Furthermore, although public universities receive subsidies from the Ministry of Education, they must raise 20% of their operating costs.
To improve and expand, universities in Taiwan must find alternative funding sources beyond the limited revenue from student tuition.
Former president of the National Taipei University of Business Chang Ruay-Shiung explained that "the country has a divided approach to investment in higher education."
"Some advocating for state investment and low or no tuition fees, similar to some European countries, while others adopt a more capitalist approach akin to the United States, with private universities charging high fees and operating autonomously," he continued.
Chang pointed out the issue remains that Taiwan finds itself caught between these two schools of thought.
Given that universities in Taiwan receive an average of NT＄100,000 to NT＄200,000 per student, there is growing pressure to increase tuition fees to maintain higher education quality and remain competitive globally.
