Financial planning is an increasingly critical function within higher education institutions. Its pivotal and multifaceted role is described in detail in this article. Based on many years of experience in higher education, the authors offer practical suggestions on how best to locate the function organizationally and perform it effectively. They discuss how environmental trends, both external and internal, are likely to impact future financial planning, the several ways in which financial planning can add value in the decision-making process, and how organizational context influences financial planning. The focus throughout is on organizational dynamics rather than analytic models.