Frequently Asked Questions
1. General information
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1.1 Why has LUH initiated the process for discussing a possible transformation of the university into a foundation only now – even though this has been possible since the amendment to the Higher Education Act in 2002?
The scientific commission of Lower Saxony (WKN) has evaluated the implementation of the foundation model for higher education institutions in Lower Saxony and has reached the conclusion to recommend it.
Excerpt from the WKN report issued at the end of 2019:
"Overall, the foundation model for higher education institutions in Lower Saxony has proved a success. Rights included in this model, such as the right to appoint professors or the authority to plan and implement building projects, as well as additional aspects such as the supervisory role of the foundation council, have resulted in a positive development of higher education institutions that have implemented the foundation model, especially with regard to fulfilling the increasing demands that higher education institutions face. For members of higher education institutions, the implementation of the foundation model led to an increased ability to identify themselves with their institution, thus creating another success factor for a positive development of foundations under public law in higher education." (p. 49)
"In view of the model's benefits, the WKN encourages higher education institutions in Lower Saxony that are currently funded by the state to evaluate the possibility of implementing the foundation model." (p. 5)
Based on this evaluation and taking into account the experience of existing foundations under public law in Lower Saxony, as well as the encouragement of the WKN quoted above, the Presidential Board of LUH has decided to discuss a possible transformation of the university structure.
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1.2 Is the foundation model for higher education institutions in Lower Saxony based on a private foundation model?
Upon their request and by decree of the state government, higher education institutions can be transformed into a foundation under public law which has legal capacity, not a private foundation. If the university became a foundation, it would be less dependent on the state; however, this would not constitute a form of privatisation. The term foundation is not legally registered. For this reason, foundation models in higher education implemented in other federal states cannot be compared to the foundation model for state-run institutions in Lower Saxony.
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1.3 Which additional duties would LUH perform if the university became a foundation?
LUH would exercise autonomy in personnel matters and have the right to plan and implement building projects. These privileges would be granted indefinitely. The latter has already been granted by decree of the Ministry of Science and Culture – however, this right may be revoked at any time. In the foundation model, the right to plan and implement building projects as well as autonomy in personnel matters are established by law. Moreover, the right to appoint professors would be granted indefinitely.
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1.4 Would the university require additional administrative staff for supporting the foundation council – and how would such personnel be funded?
The University Council too is currently supported via positions within the staff unit. These might need to be expanded to a certain extent, since the foundation council would require more support than the current University Council.
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1.5 In the foundation model, the State of Lower Saxony would give up influence while continuing to provide funding – why would the state still support this transformation?
The State of Lower Saxony actively approves of the increased independence that the foundation model provides for higher education institutions, since they are not considered subordinate regional administrations, but publicly funded institutions competing on a national and international level. Additional autonomy and greater leeway in higher education is an advantage for all involved parties – both for the state and the institutions. Other federal states have granted more leeway in higher education via different legal models, such as the corporate model implemented in North Rhine-Westphalia.
2. Impact on members of staff
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2.1 Would members of staff employed under the foundation model still be considered employees in public service?
If a foundation is established, it becomes a legal person under public law. If the university became a foundation, members of staff would not be employed by the state – however, they would still be considered employees in public service. Since a foundation would exercise autonomy in personnel matters, civil servants employed by the foundation would become indirect civil servants of the state.
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2.1.1 Would a transformation of the university into a foundation affect permanent positions that are subject to collective agreements?
No, permanent positions would be just as secure. An existing agreement between the state government of Lower Saxony, Vereinte Dienstleistungsgewerkschaft (ver.di) and Marburger Bund, Landesverband Niedersachsen issued in 2002 focuses on the establishment of foundations under public law in higher education. Section 1 safeguards the employment of higher education staff employed by the state if their institution is transformed into a foundation under public law. As specified in the agreement, termination of employment for operational reasons would not be permissible.
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2.1.2 Would the collective bargaining agreement for the public service of the federal states (TV-L) still apply if the university became a foundation?
As specified in section 58 subsection 4 of the Lower Saxony Higher Education Act, conditions determined in collective agreements and other regulations for members of staff employed by the state also apply to members of staff of a foundation. This means that the TV-L agreement would still apply if a foundation model would be established.
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2.1.3 Does a foundation under public law contribute to the pension scheme of the federal and state governments (VBL)?
As specified in section 58 subsection 4 of the Lower Saxony Higher Education Act, existing claims regarding pension schemes and survivor benefits remain valid if the university became a foundation. The foundation must ensure that any actual and legal conditions for a contributory agreement determined in the statute of VBL are established and maintained. This means that VBL contributions would remain unaffected.
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2.2 How are salaries of regular members of staff in higher education paid if a foundation becomes insolvent?
Information on this issue can be found in the agreement between the state government of Lower Saxony, Vereinte Dienstleistungsgewerkschaft (ver.di) and Marburger Bund regarding the establishment of foundations under public law in higher education. As specified in the agreement, termination of employment for operational reasons would not be permissible. Furthermore, the state is still obliged to provide funding for such foundations. Therefore, they cannot become insolvent. In order to prevent insolvency, the state must provide sufficient funds (Zustiftung) for salaries.
3. Impact on students
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3.1 What are possible consequences for students regarding their representation in university or student bodies?
The status of the university as a corporation under public law with the right to self-government would remain unaffected. Instead of a directly state-funded institution, LUH would simply become a foundation under public law. The current structure of the university would remain unaffected. For this reason, a transformation into a foundation would not affect the student body and the membership structure of the university would be maintained. Students would still be represented in university bodies, such as the Senate, Faculty Councils or Student Body Councils. Students would still participate in meetings of the new foundation council in an advisory role - just like they do in University Council meetings. If the university became a foundation, student bodies would remain unaffected as well.
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3.2 Would fees for students be increased if the university became a foundation?
No, fees for students would not be increased if the university were transformed into a foundation.
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3.3 Would degrees awarded by a foundation under public law be recognised in the same manner as degrees currently awarded by LUH?
Degrees would be recognised in the same manner.
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3.4 Would there be any consequences for the study programme or teaching activities?
If the university became a foundation under public law, the study programme would still be determined by target agreements concluded with the state in accordance with the development plan for higher education in Lower Saxony. In this regard, there is no difference between foundations under public law and state-run higher education institutions. Teaching activities as well as academic freedom defined in the Basic Law for the Federal Republic of Germany would also remain unaffected.
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3.4.1 Could external donations from the industry affect the study programme or teaching activities?
The study programme at a foundation under public law is not funded via external donations. Instead, state funds are used to fulfil day-to-day duties (study programme, basic research equipment, promoting young researchers, etc.). These duties as well as funds allocated to foundations in order to fulfil them are determined by target agreements concluded with the state.
4. Impact on the financial situation of LUH
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4.1 How would the foundation model affect financial security and long-term planning?
Budget or recruitment freezes imposed by the Ministry of Finance during the fiscal year would no longer be possible. Revenue from foundation assets would create additional funding opportunities. Due to its autonomy in personnel matters, a foundation under public law can create positions for civil servants and professors or change their salary scales.
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4.1.1 If the foundation assumes ownership of properties, the slowdown in investments would be included in the balance sheet – what would this mean for LUH?
If the university became a foundation under public law, the state would still be responsible for LUH. The fact that basic assets would be transferred to and administered by the foundation would not increase the tendency to redirect funds for research and teaching to building maintenance. The reason for this issue is the lack of funds available for building maintenance provided within the scope of the state budget plan, which affects state-run institutions and foundations alike. Only when sufficient funds are available will the university be able to gradually address the backlog in building maintenance by its own efforts.
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4.2 Could the state reduce funding if foundation income is available?
Funding allocated to the foundation from the state budget would replace current state subsidies. Funding for higher education institutions with a foundation model is secured via the state constitution (article 5 subsection 2 NV). Just like state subsidies, this budget is subject to restrictions and therefore a matter of parliament proceedings. Since the introduction of the foundation model in 2002, there have been no disadvantages for foundations compared to state-run institutions in this regard.
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4.3 Can a higher education institution that has established the foundation model become insolvent?
The state is obliged to provide funding for foundations under public law. Therefore, they cannot become insolvent.
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4.4 How would foundation assets be invested?
At LUH, there are currently no specific plans regarding foundation asset management. Other higher education institutions in Lower Saxony that have established a foundation model use conservative investment strategies, for instance.
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4.4.1 Could LUH refuse to accept donations from external sources that do not reflect the university’s values established in the mission statement?
LUH would be free to decide whether funding provided by businesses or donors is accepted. If necessary, such issues could be discussed in Senate meetings.
5. Establishment of a foundation council
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5.1 Who would be the members of the foundation council?
Just like the University Council, the foundation council would comprise five higher education experts appointed by the Ministry of Science and Culture of Lower Saxony (MWK) in agreement with the Senate, that are not members of the university, as well as one member of the university appointed by the Senate and one MWK representative.
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5.1.1 Would student representatives be part of the foundation council?
As specified in the Lower Saxony Higher Education Act, one student representative would participate in meetings of the foundation council in an advisory role – just like they do in the University Council.
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5.1.2 The foundation council only comprises one university member with voting rights. How would the university ensure that all status groups of LUH could contribute to essential decision-making processes?
Status groups are represented in the Faculty Councils and the Senate. In the foundation model, the Senate decides upon university regulations and exercises a crucial and permanent influence on the composition of university management and the foundation council. Therefore, the influence of status groups on essential decision-making processes would be secured.
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5.1.3 If the industry should provide funds for the foundation, would industry representatives be part of the foundation council?
The composition of the foundation council is governed by the Lower Saxony Higher Education Act (section 60 subsection 1 NHG, see section 5.1) and does not include donors as additional members of the council. Furthermore, the Senate exercises a permanent influence on the composition of the foundation council (see sections 5.1 and 5.1.2).
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5.2 Who would supervise the foundation council?
The Ministry of Science and Culture of Lower Saxony (MWK) would supervise legal issues within the foundation council. Moreover, the foundation council would comprise one MWK member. The state audit office would supervise the financial management of the foundation. In agreement with the Senate, the MWK would appoint members of the foundation council or vote members out of office upon request of the Senate.
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5.2.1 How could members of the foundation council be voted out of office?
If valid reason is given, members of the foundation council may be dismissed by the Ministry of Science and Culture (section 60 subsection 1 sentence 2 number 1 NHG).
6. Further course of action
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6.1 What has happened so far?
In 2020/2021, the conversion of Leibniz University Hannover (LUH) into a foundation under public law was discussed comprehensively and intensively. On 21 July 2021, the Senate of the university authorised the Presidential Board to negotiate terms for the establishment of a foundation with the Ministry of Science and Culture (MWK).
This process has been supported by the Senate and the team in charge of preparing documents for the negotiations and has been announced in the Senate meetings open to all university members. Regulations and statutes for the establishment of a foundation have now been prepared. In a meeting held on 15 June 2022, the Senate approved the drafted regulations and statutes for the establishment of a foundation. Moreover, an agreement on safeguarding employee rights during and after the conversion of Leibniz University Hannover into a foundation under public law has been concluded with the staff council in order to ensure that LUH members of staff do not experience any disadvantages due to this change of legal form. In a meeting held on 20 July 2022 and based on these documents, a large majority of the Senate approved the conversion of LUH into a foundation. The corresponding request has been submitted to the state government by the Presidential Board of LUH.
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6.1.1 How will the process be continued?
The conversion of LUH into a foundation under public law with legal capacity is scheduled to take effect by spring 2023.