Higher education endowments are an indispensable resource for covering escalating costs, strengthening financial resilience, supporting important campus initiatives, providing financial aid to students, and keeping higher education affordable. Because of the importance of these assets in the revenue mix, the work of college or university…

In this highly disruptive and uncertain period for higher education, while governing boards and the senior leadership of colleges and universities may be fulfilling their roles conscientiously, their efforts may not be enough to ensure the long-term viability of their institution's business model. Pre-COVID-19 market forces presented significant…

An often-volatile economy, changing demographics, and technological innovations in educational delivery are among the dramatic changes across higher education that have forced boards and institutions to question the viability of the existing business model. Flat or declining state support in real terms, lower investment returns in some years,…

This paper is the last in a series of reports and initiatives in AGB's Cost Project. The project was designed to build governing board capacity to monitor institutional costs effectively and strategically. Costs and productivity are not new issues in higher education. AGB and its member governing boards have long recognized the importance of…

This paper is the third in a series of reports and initiatives in AGB's Cost Project. The project is designed to build governing board capacity to monitor institutional costs effectively and strategically. Costs and productivity are not new issues in higher education. AGB and its member governing boards have long recognized the importance of…

Expectations of trustees have undergone a dramatic change in the wake of the Enron debacle, the new strictures of the Sarbanes-Oxley Act, and several new state policies, laws, and executive actions. Additionally, well-publicized examples of inadequate trustee oversight have affected the public's and policymakers' perceptions of higher education.…

This sixth edition of the State Governance Report summarizes the most relevant issues, legislative proposals, and proposed policies facing public higher education and its governance and oversight. The majority of coverage is devoted to the current or just recently completed 2009 legislative sessions. Other issues covered in this report include…

This guide is intended to assist directors and board members of foundations affiliated with public institutions as they manage investments and assets of their institution. Introductory information notes duties of foundation directors and legal criteria for prudent investing under the Uniform Prudent Investor Act. Suggestions for developing…

America is home to a diverse set of institutions that range from the fabulously well endowed to those that are very poorly funded. Yet many of our poorer institutions provide educations that are just as good as--and in some cases even better than--their richer counter-parts. In this article, the author argues that wealthy institutions of higher…

The Effective Committees set of booklets comprises publications on the following committees: investment, buildings and grounds, academic affairs, student affairs, finance, development, trustees, audit, compensation, and executive. It is part of the AGB Board Basics Series. This report describes the primary role of an audit committee. The primary…

Ways that college trustees can manage endowments are considered. It is suggested that endowment may be a key to survival for institutions facing serious financial difficulties. A frequently overlooked source of potential income is cash balances, which should be a concern of trustees, and one that should not be passed to professional managers. It…

The academic community has developed widespread consensus that trustees must balance two competing "goods" when managing their institution's endowment: first, support of current operations--preferably in a manner that dampens year-to-year volatility--and second, preservation of the endowment to serve future generations. That is to say, trustees…

One of the most pressing questions in American higher education today is how to make high-quality education available to all who seek it. At the heart of discussions of access and quality are matters of cost and price. How much will it cost an institution to make high-quality education available, and what will be the price for those who want that…

College and university trustees have important responsibilities in planning for, responding to, and recovering from disasters. In their oversight role, especially in the areas of planning and finance, they need to ensure that the institution has taken the prudent and necessary steps to reduce risk to the extent possible and to maximize the…

This booklet offers guidelines for college and university trustees for managing the institution's endowment funds as they seek to balance efforts to grow the endowment for the institution's future with the need to use these funds to supplement current budget needs. Critical policy issues are identified, such as: the endowment's purpose, maximizing…