Skip to main content

Colleges or Investment Firms?

I've worked at a wide range of colleges and universities in my career: From a tiny little college with lots of adults and transfers and commuters, to a classic liberal arts college, to one of the country's best known and wealthiest colleges, to a place just coming out of financial exigency, to one of the largest private universities in the country.  Money, in case you didn't know, makes a difference.

At one of those places, I was docked 18 cents on my first expense report reimbursement, because I had rounded up a tip, making it more than the 15% allowed by college policy.  But it was at one of the most heavily endowed colleges in the nation, at least on a per student basis.  I remember telling this to my mother, who only remarked, "Well, I guess now you know how they got it."

So today's Chronicle of Higher Education article about the "Huge Explosion of Wealth" and the resultant $37.5 Billion in contributions to colleges and universities last year.  And, as you might suspect, the biggest recipient, at an astounding $1.6 Billion, was Harvard.

So, I thought it might be interesting to look at money in higher education to answer my question: Which colleges are raising money on the side, and which investment firms are running colleges on the side?

It's below, using Tableau Software's Story Points.  Click inside the gray boxes at the top to see a different view of the data set.  This starts by breaking these 745 private colleges into two groups: Those who get more revenue from investment return than they get from tuition (orange) and those who get more from tuition than investment return (purple).

This is for a sort of high level flyover; accounting is complicated, and something as simple as growth in endowment can be attributable to a variety of things, such as big gifts or shrewd investment strategies. Not all endowment funds can be spent on financial aid (many of them are restricted) and every university has different missions, and different student bodies (for instance, more graduate students whom you fully fund can get expensive).

But take a look and let me know if you learn anything.  And if you tweet this out, I'd appreciate you tagging me @JonBoeckenstedt .



Comments

Popular posts from this blog

Changes in AP Scores, 2022 to 2024

Used to be, with a little work, you could download very detailed data on AP results from the College Board website: For every state, and for every course, you could see performance by ethnicity.  And, if you wanted to dig really deep, you could break out details by private and public schools, and by grade level.  I used to publish the data every couple of years. Those days are gone.  The transparency The College Board touts as a value seems to have its limits, and I understand this to some extent: Racists loved to twist the data using single-factor analysis, and that's not good for a company who is trying to make business inroads with under-represented communities as they cloak their pursuit of revenue as an altruistic push toward access. They still publish data, but as I wrote about in my last post , it's far less detailed; what's more, what is easily accessible is fairly sterile, and what's more detailed seems to be structured in a way that suggests the company doesn...

The Highly Rejective Colleges

If you're not following Akil Bello on Twitter, you should be.  His timeline is filled with great insights about standardized testing, and he takes great effort to point out racism (both subtle and not-so-subtle) in higher education, all while throwing in references to the Knicks and his daughter Enid, making the experience interesting, compelling, and sometimes, fun. Recently, he created the term " highly rejective colleges " as a more apt description for what are otherwise called "highly selective colleges."  As I've said before, a college that admits 15% of applicants really has a rejections office, not an admissions office.  The term appears to have taken off on Twitter, and I hope it will stick. So I took a look at the highly rejectives (really, that's all I'm going to call them from now on) and found some interesting patterns in the data. Take a look:  The 1,132 four-year, private colleges and universities with admissions data in IPEDS are incl...

Freshman Migration, 1986 to 2020

(Note: I discovered that in IPEDS, Penn State Main Campus now reports with "The Pennsylvania State University" as one system.  So when you'd look at things over time, Penn State would have data until 2018, and then The Penn....etc would show up in 2020.  I found out Penn State main campus still reports its own data on the website, so I went there, and edited the IPEDS data by hand.  So if you noticed that error, it should be corrected now, but I'm not sure what I'll do in years going forward.) Freshman migration to and from the states is always a favorite visualization of mine, both because I find it a compelling and interesting topic, and because I had a few breakthroughs with calculated variables the first time I tried to do it. If you're a loyal reader, you know what this shows: The number of freshman and their movement between the states.  And if you're a loyal viewer and you use this for your work in your business, please consider supporting the costs...