The plan for the Muslim University had by 1910 taken on the complexion and force of a national movement. The session of the All India Muslim Educational Conference at Nagpur in December, 1910 gave the signal for a concreted, nation-wide effort to raise the necessary funds for the projected University. In moving the resolution on the University, the Aga Khan III made a stirring speech. He said, 'This is a unique occasion as His Majesty the King-Emperor is coming out to India. This is a great opportunity for us and such as is never to arise again during the lifetime of the present generation, and the Muslims should on no account miss it...We must make up and make serious, earnest and sincere efforts to carry into effect the one great essential movement which above all has a large claim on our enegery and resources...If we show that we are able to help ourselves and that we are earnest in our endeavours and ready to make personal sacrifices, I have no doubt whatever that our sympathetic government, which only requires proper guarantees of our earnestness, will come forward to grant us the charter. `Now or never' seems to be the inevitable situation.'

To make a concerted drive for the collection of funds, a Central Foundation Committee with the Aga Khan III as Chairman with Maulana Shaukat Ali (1873- 1938) as his Secretary; and prominent Muslims from all walks of life as members was formed at Aligarh on January 10, 1911. The Aga Khan III accompanied by Maulana Shaukat Ali, who was still in government service and had taken a year's furlough, toured throughout the country to raise funds, visiting Calcutta, Allahabad, Lucknow, Cawnpore, Lahore, Bombay and other places. According to Willi Frischauer in 'The Aga Khans' (London, 1970, p. 76), 'His campaign for the Aligarh University required a final big heave and, as Chairman of the fund raising committee, he went on a collecting tour through India's main Muslim areas: As a mendicant', he announced,I am now going out to beg from house to house and from street to street for the children of Indian Muslims.' It was a triumphal tour. Wherever he went, people unharnessed the horses of his carriage and pulled it themselves for miles.'

The response to the touching appeal of the Aga Khan III was spontaneous. On his arrival at Lahore, the daily 'Peace' of Punjab editorially commented and called upon the Muslims 'to wake up, as the greatest personality and benefactor of Islam was in their city.' The paper recalled a remark of Sir Sayed Ahmad Khan prophesying the rise of a hand from the unseen world to accomplish his mission. 'That persoanlity' the paper said, 'was of the Aga Khan III.' On that day, the 'London Times' commenting upon the visit, regarded him as a great recognised leader of Muslims. The significant aspect of the Aga Khan's fund collection drive was not the enthusiastic welcome accorded to him, but the house to house collection drive. Qayyum A. Malick writes in 'Prince Aga Khan' (Karachi, 1954, p. 64) that once the Aga Khan on his way to Bombay to collect funds for the university, the Aga Khan stopped his car at the office of a person, who was known to be his bitterest critic. The man stood up bewildered and asked, 'Whom do you want Sir?' 'I have come for your contribution to the Muslim university fund,' said the Aga Khan. The man drew up a cheque for Rs. 5000/-. After pocketing the cheque, the Aga Khan took off his hat and said, 'Now as a beggar, I beg from you something for the children of Islam. Put something in the bowl of this mendicant.' The man wrote another cheque for Rs. 15000/- with moist eyes, and said, 'Your Highness, now it is my turn to beg. I beg of you in the name of the most merciful God to forgive me for anything that I may have said against you. I never knew you were so great.' The Aga Khan said, 'Dont worry! It is my nature to forgive and forget in the cause of Islam and the Muslims.' The drive received further great fillip from the announcement of a big donation by Her Highness Nawab Sultan Jahan Begum of Bhopal. The Aga Khan III was so moved by her munificence that in thanking her, he spoke the following words: Dil'e banda ra zinda kardi, dil'e Islam ra zinda kardi, dil'e qaum ra zinda kardi, Khuda'i ta'ala ba tufail'e Rasul ajarash be dahadmeans, 'You put life in the heart of this servant; you put life in the heart of Islam; you put life in the heart of the nation. May God reward you for the sake of the Prophet!' In sum, the Aga Khan collected twenty-six lacs of rupees by July, 1912 in the drive and his personal contribution amounted to one lac rupees.

On October 20, 1920, the Aligarh University was granted its official Charter. In spite of several obstacles, the Aga Khan continued his ceaseless efforts for the Muslim University, and further announced his annual grant of Rs. 10,000/- for Aligarh University, which was subsequently raised. The Ismaili individuals also made their generous contributions to Aligarh University. For instance, Mr. Kassim Ali Jairajbhoy gave Rs. 1,25,000 to found chairs of Philosophy and Science in the Aligarh in memory of his father