Governing boards and administrations wrestle with complex endowment policy decisions that will determine current institutional quality and future institutional viability. This chapter presents data from the 2006 NACUBO Endowment Study (published in 2007), divided into the following issues of endowment management: historical returns; endowment…

In college and university administration, overhead costs are often charged to programs indiscriminately, whereas the support activities that underlie those costs remain unanalyzed. It is time for institutions to decrease ineffective use of resources. Activity-based management attributes costs more accurately and can improve efficiency. (MSE)

Although colleges and universities have been aggressive in making capital improvements to conserve energy, their efforts have been hampered by limited capital funds. Decisions about capital investments tend to be complex because of the interrelatedness of conservation strategies and the need to consider the cost advantage of alternatives.…

The issue of whether institutions of higher education should cost account space and physical plant operating and maintenance expenses to their academic programs is examined. Space costing is cited as a philosophical base for cost accounting space, operating, and maintenance expenses to the individual academic unit of an institution. (Author/MLW)

Attainment of fiscal stability in the 1980s at the expense of providing adequate resources for plant maintenance, it is suggested, must be avoided by introducing facility management programs anticipating rather than reacting to change. Plant utilization, maintenance, and modernization are seen as requiring continuing attention. (Author/MLW)

Because of the direct relationship between operating costs and space utilization, it is suggested that opportunities for economies in the allocation of resources can be achieved by considering the variables affecting space use and developing analyses of utilization data. Measures of utilization are discussed including assignable square feet per…

Financial indicators to describe and measure the condition of colleges and universities are discussed including: determining capital charges against current revenues, analyzing revenue structures, dissecting the expenditure structure, and restating current fund revenues and expenditures. (MLW)

Historically black colleges and universities, Hispanic-serving institutions, and tribally controlled colleges receive direct federal aid to maintain facilities, staff, and academic programs. These funds are in addition to resources from federal programs available to all institutions. Origin and evolution of these special federal programs of direct…

As a result of the new tax law, many tax benefits have been reduced or eliminated, creating a number of financial challenges to colleges and universities. Most major sources of revenue are impaired, while some expenditures are likely to increase. Fund-raising methods, operating costs, and tuition payments will change. (MSE)