The past two decades have seen a significant shift in the financial model of American higher education, laying groundwork for a transformation that could reshape people's understanding of the academy. The shift--toward increasing degrees of privatization--is unmistakable and has affected every American college and university to varying extents. Privatization can be defined as the transfer of responsibility or service delivery to another sector or entity. A snapshot taken today of higher education finance would find all institutions arrayed along what might be called a privatization continuum. An institution's privatization continuum could be constructed with five major elements, each of which is discussed in this article. These elements are: (1) Operating as fully self-contained; (2) Outsourcing non-mission-critical functions; (3) Tactical alliances; (4) Strategic alliances; and (5) Operating as fully privatized.