The sustainability of Islamic educational institutions depends on financing systems capable of balancing institutional autonomy, financial stability, and long-term development. However, existing financing sources, including government assistance, community participation, waqf, and Islamic social finance, have not been optimally integrated to support institutional sustainability. This study aims to analyse financing policies and institutional self-reliance in Islamic educational institutions and formulate an integrated policy model to strengthen their financial sustainability amid institutional transformation. This study employs a qualitative descriptive-analytical policy approach. Data were collected through document analysis of institutional regulations, budget documents, institutional statistics, programme documents, and relevant scholarly literature, supplemented by an illustrative case of a pesantren-based cooperative. The data were analysed using content analysis and thematic synthesis, supported by source triangulation. The findings propose a three-layer financing model comprising certainty, sustainability, and development, integrating government assistance, community participation, educational waqf, Islamic social finance, and institutional enterprises. The study recommends establishing dedicated endowment budget nomenclature, integrating digital philanthropic platforms, strengthening financial governance literacy, and replicating alumni-based enterprise models to enhance institutional autonomy and long-term sustainability.
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