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This book analyzes the latest data and economic models to explore whether an unpredictable economy, changes in student preference, tuition that outpaced inflation, and new forms of competition will plunge small colleges into chronic financial distress. It then suggests ways small colleges can position themselves to avoid economic disaster by understanding the markets in which they operate. The book details the financial essentials of small colleges in these chapters: (1) "Small Colleges on the Brink of Financial Distress"; (2) "Historical Influence on the Economic Development of Independent Colleges"; (3) Challenges Facing Small Colleges"; (4) "Economics of Small Colleges"; (5) "Financial Structure of Small Colleges"; (6) "Identifying Financial Distress in Small Colleges"; (7)"Why Small Colleges Fail: Four Cautionary Tales"; (8) "Financial State of Small Colleges"; (9) "Planning and Leadership: Tools for Pulling Back from the Brink"; (10) "Financial and Market Diagnostics"; (11) "Financial Strategy"; (12) "Small College Turnarounds: How They Did It"; and (13) "What Are the Prospects for Small Colleges?" Seven appendixes present trend tables and supplemental information about college finances. (Contains 35 tables and 177 references.) (SLD)

In this timely book, financial consultant and experienced college administrator Mike Townsley examines the financial and strategic resources that private colleges and universities must have in place to withstand the storm. Small college presidents, CFOs, planners, chief academic officers, and board members all have a hand on the tiller and will find substantive guidance here on analyzing financial condition, reshaping strategy, implementing best practices, weathering rocky periods, and designing turnarounds. Readers will learn: (1) Current financial conditions and statistics for private colleges and universities; (2) Economics of markets, prices, and constraints that drive private institutions; (3) Common financial structures; (4) Model practices employed in a well-run business office; (5) Typical business models that are the framework for strategy, operations, and finance; (6) Recommended policies and procedures to safeguard against disaster; (7) Strategic planning for optimum performance; (8) Leadership qualities and characteristics; (9) Warning signs of financial distress; (10) Comparative case histories of private colleges that have succeeded and failed; (11) Lessons learned from college closures and steps for dramatic turnarounds; and (12) A set of principles for building and sustaining strategic momentum. Looking ahead to looming financial pressures, Townsley offers advice on maintaining a forward momentum detailing specific measures for monitoring performance and posing top-of-mind questions that will help financial officers maintain the vigilance required to turn a problem into an opportunity. Well illustrated and documented with the latest statistics, "Small College Guide to Financial Health: Weathering Turbulent Times" includes a CD with several tools and templates for analyzing and designing a winning financial strategy. Appended are: (1) Strategic Planning Components; (2) Financial, Marketing, and Management Diagnostics; (3) Financial Measures; (4) Financial Management Ratios; (5) Financial Benchmarks; (6) Financial Aid: Net Tuition Rates and Net Tuition Revenue; (7) Composite Financial Index; (8) Data Sources; and (9) Massey and Hopkins's Economic Model. A bibliography and an index are included. Individual chapters contain endnotes. (Contains 14 figures and 34 tables.)

All private colleges and universities make strategic capital investments and consider the use of debt to fund those investments. From the commonplace purchase of photocopiers to the construction of new academic buildings or dormitories, investment decisions that yield long-term financial benefits must follow on the heels of careful analysis. To that end, this toolbox will help boards, presidents, and chief financial officers understand the mechanics of capital investments, debt management, and project planning by: (1) explaining how to analyze and select a capital investment project and a method for funding the project; (2) providing templates for analyzing capital investment projects, estimating the cost of debt, and preparing a project business plan; (3) identifying sources of funds in addition to debt to finance investment projects; and (4) including typical documents used when borrowing is the primary method of project financing. Eight steps have been identified in the process of designing a successful investment project and each of them are examined. They are: (1) Identifying prospective strategic investment projects; (2) Analyzing the capital investment; (3) Analyzing the nondebt options for financing the project and analyzing the debt options for financing the project; (4) Understanding loan and tax-free bond instruments; (5) Using checklists and other considerations; (6) Refinancing existing debt; (7) Preparing the business plan for the capital project; and (8) Presenting the business plan to the board of trustees for action.