Darul Ihsan University is a purely non-profit educational institution. Like many other private Universities of the country, it is also being developed out of the funds/contributions made available through net surpluses of the students' fees and donations of the benevolent personalities/institutions from home and abroad. The greatest of all contributors was the Late Professor Dr. Syed Ali Ashraf himself.
In addition to his two houses located on 20 Katha land in Dhanmondi, he has also donated 13 acres of land in Ganakbari, Ashulia, Savar and one residential flat in Cambridge towards the development of Darul Ihsan University. Qatar Charitable Trust, Iqra Charitable Society (Jeddah), Sheikh Ahmed Salah Jamjoom, Dr. Aleem Mohammed (Trinidad, West Indies) and some other foreign agencies have made significant contributions to the University. Darul Ihsan University is the first Private University in Bangladesh. Here have some events relating to the birth of Darul Ihsan University. It was some time in March 1958 Professor Dr. Sayed Ali Ashraf, The head of the Department of English of the Karachi University, suggested to promote and develop Private University in less developed countries, in a meeting held at Karachi University with renowned educationalists and professionals, local and foreign. Professor Ali Ashraf further stated that the Private University in less developed country would act as a tool for ultimate economic prosperity and political stability. The suggestions and ideas of promoting the developing of University in the Private sector were accepted unanimously by the renowned educationalists and professionals present in the meeting. In 1975, Professor Dr. Syed Ali Ashraf, the then Dean and Head of the Department of English, King Abdul Aziz University, K.A.A.U., Jeddah in an informal discussion meeting held at K.A.A.U, Jeddah with foreign and local renowned educationalists and professionals of Saudia Arabia, disclosed firmly his desire to set up a Private University in Bangladesh. Prof. Ali Ashraf elaborated that the University should be able to blend the establish linkage between 'Revealed' Knowledge and 'Acquired Knowledge' to provide total education and knowledge to the people. The establishment of such Private University in Bangladesh was his faith and his decision was honest, firm and determined. With that end in view Prof. Dr. Sayed Ali Ashraf formed as a Founder of the Darul Ihsan Trust in 1986. The aim and objective of the Darul Ihsan Trust is to established educational institution including University to provide meaningful linkage between, 'Revealed Knowledge' and 'Acquired Knowledge'. The birth of Darul Ihsan University took place in 1989 at Ganakbari, Ashulia, Savar Campus in presence of high foreign and local dignitaries. The first convocation was held at Ganakbari, Ashulia, Savar on 13 March 1997 and Bachelor, Master and Doctorate degrees were conferred upon 442 students by the Chancellor, Darul Ihsan University and President of the People's Republic of Bangladesh. It will thus reveal that the original idea of Professor Dr. Sayed Ali Ashraf to promote and developed University in the private sector crystallized and proved in reality by establishing the Darul Ihsan University by him as its Founder. The concept and objective of the University provide the students a religious base and guide to acquire higher knowledge in Human and Natural Science. They learn to protect the moral fiber of the nation from being eroded and thereby face the challenges of the world.