In these uncertain times, colleges and universities are forced to come up with innovative ways to deal with funding cutbacks and revenue shortfalls. In this installment of “Diverse Conversations,” Lewis Duncan, president of Rollins College, dispenses advice on how institutions can strategically manage their resources to help them thrive during these financially turbulent times.
In the face of unprecedented fiscal challenges, how can colleges and universities maximize their increasingly scarce resources?
Most private liberal arts institutions are highly dependent on student revenue. At Rollins College, for example, 86 percent of our total annual operating budget is derived from student revenue.
One way to maximize increasingly scarce resources is to find innovative ways to supplement the operating budget. Our approach was The Alfond Inn, a boutique hotel that opened in August 2013. The Inn, located a block from campus, not only meets a community need for lodging and conference space, but also provides full scholarships (tuition, room and board) for top students through The Alfond Scholars program — the college’s premier scholarship fund.
Net operating income from the inn will be directed to the scholarship fund for the next 25 years or until the endowment principal reaches $50 million, whichever comes later. The allowable spending from the endowment will supplement the operating budget in the form of additional financial aid support.
What’s the value of your school’s endowment now compared to last year? How has this impacted the way that you allocate your university’s resources?
