Abstract: Financial crisis to higher education is a worldwide problem. The Chinese Government and higher education institutions have been searching for solutions through establishing university related foundations striving for philanthropic income. However, the foundations are facing an increasing number of challenges which require governmental assistance. A good example of government supported financial source to higher education is the Australian "Education Investment Fund" which was established by the Australian Federal Government, aiming at financing its higher education sector through a growing fund by conducting financial investment. This article introduces the Australian "Education Investment Fund", addresses problems that Chinese university related foundations are facing, and discusses the implication of Australian "Education Investment Fund" to Chinese university related foundations and financial sustainability of the entire Chinese higher education sector as well.