ÓÈÎïÊÓƵ

SFU's Financial Framework

At ÓÈÎïÊÓƵ, responsible financial management supports academic, research and operational excellence. By strategically allocating and managing resources, we aim to advance our academic mission and strategic priorities, while ensuring long-term financial sustainability.

Revenue sources

SFU’s funding comes from multiple sources, each of which is important for supporting our programs and priorities – some of the key sources of revenues are:

Government funding 

A significant portion of SFU’s revenue comes from the Province of British Columbia.

• For 2025–26, the amount provided is $415.7 million across all funds.
• Of that, $395 million supports SFU’s core operating budget, and $20.7 million is restricted for specific project-based initiatives. SFU also receives support from the federal government in support of indirect costs of research and restricted research activities, as well as other activities. 

Tuition and student fees 

• Tuition makes up $310.5 million of the university’s revenue in 2025–26. 
• Domestic tuition growth is capped at 2%, while international tuition rates are adjusted to market conditions, reflecting that there is no provincial funding for international enrolments.

Research grants and contracts 

SFU secures federal agency funding (e.g., NSERC, SSHRC, CIHR) and partnerships with industry and non-profits to expand research opportunities, drive innovation, and enhance the student experience through research involvement.

• $113 million in externally restricted research revenue

Investment income 

Our active investment portfolio generates additional revenue, enabling us to support student services, academic activities and campus improvements.

• $34 million in investment income (plus a one-time $22 million gain from fossil-fuel divestment).
• The estimated $22 million gain is an accounting gain that will be recorded on the sale of non-endowment Canadian equity investments, which grew in value over time. These investments will be sold as part of our committment to move to fossil fuel-free investments. Because of the Public Sector Accounting Standards (PSAS) rules, this gain can only be recorded once the investments are sold - not while they are held.
• This one-time gain contributes to SFU’s consolidated surplus, which includes restricted funds that are earmarked for specific purposes and cannot be used to offset general operating costs like faculty or departmental budgets.

Campus services

Residence and housing, the bookstore, food services, parking and sustainable mobility, SFU childcare, document solutions and meeting, event, and conference services provide essential services while generating revenue to offset operational expenses incurred in providing these services. 

• $50 million in campus services revenues that support the operational costs of providing these services

Donations and endowments 

These contributions support scholarships, research, and major capital projects that benefit both current and future students.

• $70 million in donations and non-government grants.  

Financial decision making

Decentralized budget model 

SFU follows a decentralized budget model overseen by the Chief Budget Officer, where faculties, research units, and administrative departments manage their own budgets while aligning with institutional financial guidelines.

Aligning financial decisions with SFU’s strategic plan 

Our institutional strategy shapes how we prioritize projects, allocate resources, and measure success, ensuring every dollar we spend advances excellence, inclusion, and sustainability. 

Budget approach and allocation

Our annual operating budget outlines how and where SFU directs resources. Expenses in the operating budget are guided by What’s Next: The SFU Strategy. We also ensure that financial resources help advance priorities such as the international enrolment  initiatives, strategic technology investments, research and innovation, Indigenous engagement and the new School of Medicine.

Budget Process

• The budget process is collaborative, led by the Office of the Provost and Vice-President Academic in consultation with the Office of the Vice-President, Finance and Administration.
• SFU follows an annual budget cycle—starting with multi-year projections and stakeholder consultations in spring/summer. Students, faculty and staff are invited to participate in budget information sessions each fall, which is followed by Board approval of the final budget before the new fiscal year begins.  

Operating budget overview and distribution

• The total operating budget for 2025-26 is $747.7 million, which supports SFU’s core teaching and learning functions, research, student services, and institutional infrastructure. 
• This amount comes from a combination of provincial operating grants ($395 million), tuition and student fees ($310 million), and other income (e.g., sales of goods/services, non-government grants/contracts, miscellaneous revenues).
  

Salary and operating expenses

• 76% of the operating budget goes towards employee salaries and benefits. 
• The remaining 24% funds key items such as scholarships and bursaries, professional and contracted services (e.g., legal, janitorial and security, technology), supplies and equipment, utilities, and a small contingency for unexpected costs.

Investments

Responsible investment approach

SFU follows Responsible Investment (B10.16) and Investment Governance (B10.09) policies that incorporate Environmental, Social, and Governance (ESG) standards. As part of its 2021 divestment commitment, SFU is in the final phase of removing fossil-fuel holdings—yielding a projected one-time $22 million divestment gain for 2025–26—which is reinvested into fossil-fuel-free funds.

ESG integration

SFU aligns with the UN Principles for Responsible Investment and typically engages external investment managers experienced in ESG-focused portfolios. This balanced approach prioritizes sound financial returns while reflecting SFU’s sustainability and social-responsibility values.

Impact measurement

Tools like the Investment Portfolio Carbon Footprint Report and regular ESG assessments help track and improve the portfolio’s environmental and social performance. SFU also supports local impact by investing in mission-driven funds such as the Vancity Community Investment Bank (VCIB).

Annual performance reports

SFU discloses its investment progress in Custodial Statements of Endowment Investments, Annual Financial Reports, and periodic policy reviews/consultations. These updates detail portfolio performance, carbon reductions, and policy adjustments that keep SFU’s investment strategy aligned with its academic mission and sustainability goals. 

To learn more about SFU’s investment policies, ESG considerations, and consultation opportunities, visit SFU Finance: Responsible Investments.

Key financial terms and concepts 

Learn more about the most common budget and finance terms, such as operating funds, restricted funds, surplus and endowments and more. These core concepts will help you better interpret SFU’s budget documents.

Resources and updates

• SFU Budget 2025-26
• Financial reports and statements
• FAQs
• SFU Finance: Responsible Investments
• Key financial terms and concepts