FuturED Finance

financial strategy

Why Top-Down Criticism Fails in Higher Ed—And What Works Instead

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The Department of Education’s August 3rd letter to university presidents and governing boards raises several important questions. But the way those questions are presented may make it harder for institutions to engage with them productively. The letter asks institutions to examine issues, including: The ideas themselves are worth considering, but the problem is in the […]

When Markets Shrink: What Higher Ed Can Learn From Healthcare, Hospitality, and Media

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Higher education likes to think of itself as unique. In many ways, it is. But the financial pressures facing colleges and universities are not entirely new. Other industries have already dealt with shrinking markets. Their experiences offer some useful lessons for higher education. The latest CBO survey confirms what many leaders are seeing: 46 percent […]

The Top 10 Warning Signs of College Closure

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Recently, a board member at one of our client institutions reached out to ask, “What are the biggest warning signs that a college is at risk of closure?” Not every warning sign carries equal weight. Three indicators tell you whether an institution is in immediate financial danger. Two more point to structural problems that often […]

How Endowments Get Spent Down — and What Leaders Should Do About It

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Endowment depletions rarely start with a formal decision. More often, one gift posted to the operating account doesn’t make it to the investment pool—and then another. Then the financial team decides to hold off on the transfer until the budget situation stabilizes. Then they make a formal resolution to spend at a slightly higher rate […]