In a time when higher education institutions face increasing financial pressures, FuturED Finance helps institutions develop financial models, financial projections, and benchmarking to provide strategic clarity and collaborative problem-solving.
A Data-Driven Approach to Institutional Health
Our work centers on two key sources of data: five-year financial projections and peer benchmarking. By leveraging this information, we help leadership at institutions understand the magnitude and timeline of their financial challenges by stress-testing projections and comparing performance metrics against carefully selected peer institutions.
Benchmarking data is used to provide insights and challenge our assumptions, rather than draw conclusions. This openness to institutional context and stakeholder input is a hallmark of our approach. For many institutions facing annual operating deficits, the challenge is not immediate closure but the need to address ongoing cash flow deficits before reserves are depleted.
Benchmarking with Precision
Peer selection is critical in benchmarking. We use a sophisticated data analytics tool to analyze 45 characteristics that identify the institutions most like the one we are benchmarking. These include enrollment size, graduate vs. undergraduate mix, discount rates, and geographic location. We are careful not to compare institutions of vastly different sizes, noting that economies of scale can distort insights.
The benchmark analysis reveals areas where an institution’s spending or revenue is higher or lower than that of its peers. We then work with campus leaders to unpack these insights and determine whether there are opportunities to increase revenue or reduce costs.
Tuition Strategy and Equity
Another area of focus is net tuition by income bracket. Are there income brackets where students are paying significantly more or less than expected compared to peers? It opens a conversation about pricing strategy, discounts and enrollment.
Our conventional race-to-the-bottom approach in tuition discounting may not be yielding the desired results. “I’ve been pressing my clients to think about whether they should take discount dollars away from the lowest income brackets and push toward the higher income brackets who often pay 2-3 times more, thus increasing overall net tuition revenue. While this seems counter to our access for all stance, it allows us to better support students who truly need it by creating greater financial strength for the institution.
Collaborative Leadership and Next Steps
Throughout any engagement, our approach fosters a culture of transparency and shared ownership among the leadership team. These insights are not just numbers — they’re tools to aid decision-making and identifying actionable opportunities to achieve mission-driven sustainability.
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