Revenue Generation Strategies AEHE Volume 41, Number 1 J–B ASHE Higher Education Report Series (AEHE) Series

Achieving successful financial viability by broadening revenue sources is one of the most important issues facing colleges and universities today.

Increasing operating costs, along with the reliance on traditional student tuition, government support, and philanthropy, are challenging universities. One way administration leaders and faculty are meeting this challenge is to establish supplemental revenue streams from a variety other sources such as:

• continuing education,
• credit and noncredit certificates,
• degree completion and upgrade programs,
• study abroad,
• domestic and international branch campuses,
• distance education,
• auxiliary services,
• technology transfer, and
• partnerships or alliances with other organizations.

These types of activities, formerly considered secondary ventures, are now integral to lasting and responsible financial strategic planning.

This monograph examines a wide variety of supplemental income options and opportunities, as well as examples of restructuring financial planning schema. While not negating the value of traditional college education, these new revenue sources in fact lead to greater institutional effectiveness.

This is the 1st issue of the 41th volume of the Jossey-Bass series ASHE Higher Education Report. Each monograph is the definitive analysis of a tough higher education issue, based on thorough research of pertinent literature and institutional experiences. Topics are identified by a national survey. Noted practitioners and scholars are then commissioned to write the reports, with experts providing critical reviews of each manuscript before publication.

Executive Summary vi

Foreword xii

An Introduction to Revenue Origins and Changes 1

Need for Revenue 8

Established Income Sources 15

Recent Disruptions and Opportunities 23

Academic Programs for Generating Additional Income 28

Noncredit Academic Programs 38

Credentialing and Certificates Programs 43

Degree Completion and Upgrade Programs 48

Partnerships, Alliances, and Joint Ventures 54

Study Abroad Programs 62

Branch Campuses 66

Online Distance Education 69

Nonacademic and Auxiliary Opportunities 77

Maximizing Facilities Utilization 80

Other Alternative Revenue Sources, Grants, and Outsourcing 86

Technology Transfer 92

Strategic Considerations for New Income 97

Budget Planning Options 99

Contemporary and Developing Approaches 104

Conclusion 110

References 114

Name Index 129

Subject Index 134

About the Author 138

Jeffrey W. Alstete is associate professor of management and business administration in the Hagan School of Business at Iona College in New Rochelle, New York.