Capturing Alternative Revenues

Executive summary

No silver bullets for increasing revenue

Colleges and universities face an increasingly challenging financial landscape with rising costs and declines in traditional revenue streams such as tuition and government funding. As the gap between revenues and expenses grows, many institutions struggle to achieve a balanced budget. With these financial pressures unlikely to dissipate, leaders are once again considering how alternative revenue streams could bolster their institution.

Like in the Great Recession’s wake, leaders are seeking non-traditional funding streams that can relieve the pressure to reduce costs. However, achieving an ROI on alternative revenue strategies remains difficult to generalize or replicate. Where success has occurred, institutions report modest returns that are unlikely to offset major budget shortfalls. The most successful institutions are often the beneficiaries of one-time opportunities rather than replicable strategies.

Ultimately, there is no formula for multi-million-dollar ideas; however, pursuing replicable opportunities can diversify income and support core operations.

Alternative revenue is not one-size-fits-all

Instead of trying a little bit of everything, EAB recommends focusing on a small number of strategies that align with institutional goals and available resources. Leaders should evaluate each idea on two factors: revenue potential and institutional feasibility.

This approach helps prioritize tactics with the highest likelihood of success.

Resources to help leaders capture alternative revenues

To help college and university leaders pursue viable alternative revenue opportunities, EAB has compiled two distinct resources in this publication.

1. Compendium of Alternative Revenue Tactics: A list of 156 proven revenue tactics, with detailed descriptions, relative dollar estimates, and time to ROI evaluations to help leaders generate ideas for alternative revenue opportunities to evaluate.
2. Evaluation Guidance: Stepwise guidance for evaluating tactics based on institutional context.
3. Appendix: Two lists with EAB’s recommendations for tactics with a short time to ROI or high revenue potential.

Download the Report