ERIC Number: ED221251
Record Type: RIE
Publication Date: 1982-Nov
Reference Count: 0
Revenue Diversification: A New Source of Funds for Community Colleges.
Brightman, Richard W.
In this period of financial austerity in education, community colleges can diversify their sources of revenue as an alternative to reducing or eliminating programs or accepting a decline in the quality of education. One such approach involves the colleges in commercial activities undertaken to support educational programs and services. Although there are legal, organizational, and financial factors requiring consideration before embarking on these efforts (e.g., the question of taxation and the risks involved), these are not insurmountable barriers to successful engagement in commercial ventures. A survey of 70 California community colleges revealed that 13 of the 36 colleges responding were operating or planning to operate for-profit ventures, including contract education, catering food to the community, retail sales, leasing facilities, and granting concessions. Other colleges seeking to diversify their sources of revenue should take advantage of the physical assets they possess, recruit experts to advise on legal and business matters, engage the help of small business groups, obtain approval of the board of trustees, and establish a committee to oversee the project. Problems that need to be overcome include perceptions that for-profit ventures by educational institutions are illegal, that most of the money made will be lost in taxes, and that the college's mission will be diluted. (HB)
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: N/A
Identifiers: Revenue Diversification