In this article, Robert M. Gates, former Secretary of Defense and chancellor of the College of William & Mary, makes three observations about public higher education: (1) Over the past generation we have seen a gradual abandonment of the principle that higher education is a public good and the emergence of a view that it is a private consumer…

DePaul University has grown in size and stature in the last decade. Chicago's "little school under the El," as DePaul was once known, is now the nation's largest Catholic university and the largest private, nonprofit university in the Midwest. DePaul University restructured its board, enabling it to play an important role in the…

Board meetings usually focus on nuts-and-bolts issues--action items and financial matters that require immediate discussion and prompt decisions. But larger philosophical issues also sometimes float to the surface--matters having to do with institutional mission, campus ethos, or educational styles--and when these kinds of issues arise, it is…

Today's college and university boards find themselves faced with ever-increasing challenges as they attempt to meet the financial needs of their institutions while complying with a myriad of fiduciary responsibilities. How can boards best meet the financial needs of their institutions? Representatives of Ball State University Foundation describe…

The reductions in state tax support for public universities that began around 1990 and continue today are progressively redefining relations between government and public higher education. The reasons for the drop in appropriations per student vary from state to state and include aging electorates, voter fervor for tax cuts, and mandated…

Governing board members bear major and ultimate responsibilities as fiduciaries of the college or university they serve. Calls for increased accountability and developments such as financial volatility, transformational technology, internationalization, and increased regulation of governance have led to mounting attention to the quality of…

Forget basketball and March Madness. Aside from always pressing financial issues, it is "MOOC madness" that has emerged as the topic "du jour" at a growing number of American colleges and universities. Indeed, in boardrooms all across the country, people are grappling with what the advent of MOOCs--massive open online courses--means to their…

Major demographic changes around the world. Disproportionate sovereign debt. A shift from North America, Western Europe, and Japan to emerging economies as centers of growth. Unprecedented levels of market risk and volatility. The structure of the global economy is undergoing significant changes. Michael Oyster, managing principal of Fund…

The changing landscape in higher education is increasingly forcing institutions to examine their long-standing business models and to start making changes. Leading those changes and overcoming internal resistance to them will require strong oversight from governing boards. What might an institution's review of its business model actually look…

Managing liquidity--a college or university's ability to access cash quickly or to easily convert assets to cash--is an increasingly crucial component of enterprise risk management. Liquidity risks lurk around nearly every corner--in the endowment portfolio, the debt portfolio, and in working-capital management. It also influences students'…

The strategic plan represents an institution's top priorities. Yet colleges commonly set aside financial resources to pursue them only after investing in maintaining the status quo. When building a budget, boards should focus on putting institutional assets at the center of the process and aligning fiscal decisions with their college's mission and…

Shared governance is a basic tenet of higher education and is frequently referred to. For shared governance to be successful, board members, administrators, and faculty members must learn to have respect for and confidence in each other, acting inclusively, transparently, and responsibly. Boards need to be active and involved, participating in…

The challenges with which college and university boards must grapple promise to become only more complex in the coming years, placing ever-greater demands on the leaders of those boards. This article presents a conversation between Association of Governing Boards of Universities and Colleges (AGB) President Richard D. Legon and two AGB leaders who…

Moody's Investors Service provides credit ratings for hundreds of private and public colleges and universities--ratings that can strongly influence the interest rates higher-education institutions can obtain when they want to borrow money. How colleges are governed and managed are key determinants of those credit ratings, especially in an…

A new study of endowments by the National Association of College and University Business Officers (NACUBO) and the Commonfund Institute has brought good news to college and universities: While endowment returns dropped precipitously in fiscal year 2009 as a result of the financial crisis and accompanying slide in equity markets, they climbed to an…