Financial Sustainability

New strategies, models and technologies

While the cost of providing higher education continues to increase, traditional sources of revenue—such as state funding, tuition, and endowments­—are decreasing, forcing leaders in higher ed to find new ways to remain viable. By employing new strategies, business models and technologies, and finding smarter ways to use available data, these leaders are fostering a climate of creativity and innovation, reshaping the way colleges and universities can sustain themselves.

Insights

While reliance on part-time contingent faculty has helped constrain faculty compensation costs, it hasn’t produced the same level of savings in total compensation costs for all employees.

Colleges and universities face daunting challenges to long-established business models. The cost of providing higher education continues to rise but sources of funding have eroded.

Accreditations are third-party verifications of quality. At the extreme, accreditations can be gatekeepers—without the accreditation you cannot operate. Other accreditations are more or less voluntary depending on particular state policies.

Research Reports

Performance funding applies financial incentives to higher education, tying a portion of public institutions’ state appropriations to retention rate, degree completion and other student outcomes.

Despite the increasing role of 401(k) plans as retirement vehicles, little is known about how mutual fund families acting as 401(k) plan service providers influence the investment choices offered in their plan.

While a number of published studies have measured how the number and mix of fund options influence investment patterns in retirement accounts few, if any, have examined how plan participants react to a large reduction in investment choices.