The National Management Foundation (NMF), the sponsoring body of the University, was incorporated in November 1984 and was granted a charter by the Government of Pakistan for establishing the University in March 1985. Through this charter, the University was given the legal right to establish degree-granting programmes. The Board of Trustees, the policy-making body of the University, comprises leading members of the business community, academia and representatives of the government. The principal functions of the Board are to set broad policy guidelines and to review the operations of the University which functions on no profit no loss basis.
The Board of Governors of the NMF, being the sponsors of LUMS, raises the necessary funds for the University’s operations and meet its infra-structure requirements. Consequently all land and university buildings are owned by the NMF. Many members of the Board of Governors of the NMF are representatives of the business community and form a crucial link between the University and the business world as shown on the list of the Board of Governors.