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The business model of higher education is unlike that of any other industry in America’s economy. Colleges and universities traditionally charged less than the full cost of educating students because they made up the difference through government support and other revenue streams. Yet making up the difference is becoming increasingly difficult; institutions struggle with their dependence on waning government support and unpredictable revenue streams.
It is the responsibility of all board members to understand the complexities of their institution’s finances and business model. Boards must take an active role in overseeing the finances by strategically planning for the short-term and long-term health of their institutions. Doing so safeguards institutional viability while also broadening the public’s understanding of today’s higher education business model and opportunities for evolution.
Click below to reveal key questions for your board to consider:
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Consequential Questions:
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