The foundations of our finances

The University of Lapland is a financially independent public institution. Our funding is based on three main categories: core funding granted by the state, complementary funding applied for from external funding sources and investment returns.

The Ministry of Education and Culture allocates the core funding of the state to Finnish universities with an imputed funding model. Among other things, the model covers the effectiveness of education and research of universities, as well as development measures in, for example, national missions and structural development as agreed on in performance agreements.

True to its name, complementary funding complements the core funding, and it is mainly formed of project funding. Our university conducts research and increases it regional, national and international impact through these projects. With the returns from our investments, we create financial stability for our operations and make strategic initiatives.

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Finances in 2024

In 2024, the Ministry of Education and Culture granted the University of Lapland €41.2 million worth of core funding, in addition to €1.9 million worth of other complementary or separately allocated funding. The total revenue from operations totalled €66.7 million. Other sources of revenue included business operations, projects, state grants and other profits.

AThe realisation of staff expenditures totalled €45.5 million, which accounts for nearly 70% of all operating costs. Rental expenses for facilities accounted for nearly 11% (€7.1 million) of all operating costs, making them the second-largest expenditure item in the University of Lapland’s operational budget. Other expenses totalled €11.4 million.

In the financial period of 2024, our net operating results totalled €1.6 million (€0.6 million in 2023).

Other remarkable events in the University of Lapland’s financial period of 2024 included Peter Sarlin’s €0.5 million donation to the Law & AI professorship and the entry on the change in the unrealised fair value of investments, which totalled €4.7 million.

The profit for the period totalled €6.7 million (€3.7 million in 2023).

Economic indicators

Complementary funding

Our university conducts research and development projects that receive funding from multiple sources. The most important and significant funding sources are Business Finland (formerly Tekes), the Research Council of Finland and the structural funds of the European Union. Our goal is to increase the share of international research funding in the full volume of research funding. Our long-term goal is to achieve a 40 % level of complementary funding in relation to our overall funding.

Complementary funding sources €23.2 million

Investments

We received the initial capital for investing through the state capitalisation in 2010 in connection with the changes in the Universities Act. We also allocate surpluses of previous financial periods and fund-raising returns to investments. The investments and their allocation are guided by the investment strategy approved by the University of Lapland. In 2024, the investment assets of our core investment activities were worth €45.7 million. The goals of the investments of the University of Lapland are to offer a stable and predictable stream of revenue for funding the university operations, as well as to preserve and increase the real value of the capital in the long-term. Our real revenue goal is 3–5 % in the long-term.