The full impact of the current recession on American higher education remains uncertain, but drops in applications, faculty autonomy and job security, frozen salaries and hiring processes, and scaling back of new facilities and programs are already being seen. American colleges face tough times ahead for teaching, research, and capital projects across the board as promised gifts may be withdrawn, committed donors may sit on their assets, and foundations and government agencies may put the brakes on research financing. Less-obvious threats are potentially even more damaging in leadership, management and governance. The author predicts a leadership crisis in higher education and advocates that corporate leadership be tempered by increasing the role of faculty members in hard financial decisions, finding leaders for colleges who have a clear record of teaching and research accomplishment, and building boards of trustees that also represent the worlds of art, public policy, medicine, and foundations.