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Aalto University's primary source of income is government funding from the Ministry of Education and Culture, which is approximately 55% of all funding. The university's funding model guides the distribution of this government funding, as well as the funding from the university's endowment investment income – to meet the needs of schools, research, artistic activities, education, and other activities.

The funding model is part of the implementation of the university's strategy: resources are directed to various core activities based on our long-term strategic choices

The funding model consists of three elements:

• Long term core funding (~65%): Stable input funding against 4-year targets in our core activities.
• Results based funding (~30%): Variable output funding for our past performance in our core activities.
• Development funding (~5%): fixed term funding for development projects for new capability building.
• Enabler charging: charging of costs for services and facilities.

Long-term core funding, accounting for approximately 65% of the funding, is allocated to schools against the agreed academic targets for the next four years. Results-based funding, approximately 30% of the funding, rewards for past academic performance. The smallest element, development funding, is resourcing for our joint strategic projects, prioritised according to their contribution to our strategic goals. In addition, our services and facilities as key enablers are resourced by internal charges based on KPIs reflecting their use by schools.