Financial Health

Priority 2: Financial Health

Goal 2.1: Achieve Sustainable Operating Margins

Strategies:

• 2.1.1 Implement robust long-term financial planning and forecasting.

  • Initiative: Create Dynamic Financial Model
     

• 2.1.2 Promote a culture of cost-consciousness and operational efficiency across all units.

  • Initiative: Optimize Expenses
     

• 2.1.3 Strengthen financial governance and accountability through transparent reporting structures.

  • Initiative: Create Dynamic Financial Model
     

Goal 2.2: Optimize Resource Allocation and Strategic Investments

Strategies:

• 2.2.1 Align resource distribution with institutional values and priorities and performance outcomes.

  • Initiative: Revamp the Budget Process
     

• 2.2.2 Use data-driven decision-making to evaluate investment opportunities and assess ROI.

  • Initiative: Implement Budgeting Tool
     

• 2.2.3 Encourage cross-unit collaboration to maximize shared resources and reduce redundancy.

  • Initiative: Develop Budget Advisory Council
     

Goal 2.3: Increase Net Tuition Revenue Across All Student Cohorts

Strategies:

• 2.3.1 Implement strategic enrollment management practices to maximize net tuition revenue.

  • Initiative: Reframe Enrollment for Impact and Excellence
     

• 2.3.2 Optimize academic program offerings and modalities to enhance the student success pipeline and to attract new student segments.

  • Initiative: Undergraduate-to-Graduate Pipeline: Pathways to Professional Excellence

  • Initiative: Academic Program Review
     

Goal 2.4: Develop and Grow New Revenue Streams

Strategies:

• 2.4.1 Diversify revenue through innovation in public and private partnerships and auxiliary services.

  • Initiative:
     

• 2.4.2 Build scalable models for continuing education, online learning, and professional development.

  • Initiative: Reimagined College of Professional Studies: Expanding Access and New Revenue Streams
     

Goal 2.5: Advance Philanthropic Efforts and Strengthen Advancement Infrastructure

Strategies:

• 2.5.1 Cultivate a donor-centric approach to engagement, stewardship, and communications.

  • Initiative: High-Impact Donor Engagement and Profiling Initiative
     

• 2.5.2 Build a culture of philanthropy and support long-term fundraising success.

  • Initiative: Student Philanthropy: Building a Culture of Lifelong Giving
     

• 2.5.3 Engage key volunteer leaders as strategic partners in donor identification, engagement, cultivation, solicitation, and stewardship.

  • Initiative: Campaign Volunteer Engagement

Key Performance Indicators

• % of operating margin (target 3% annually)

• Operating revenue per student FTE increase by 3%

• Operating expense per student FTE remain relatively flat

• % of Net tuition revenue from UG, GR, Transfer student cohort (increase by 3-5% per year)

• % of total revenue from non-tuition and alternative sources increase by 5% each year

• $ amount of total funds raised (campaign progress towards $400M goal)

• $ amount of accrued revenue raised each year (increase annually)

• # of donors for annual giving (increase by 5% annually)

• # of donors for major ($50,000+) giving (increase by at least 10% annually)

• # of planned giving donors (McCallen Society members; increase by at least 10% by May 31, 2028)

• cost of raising a dollar (maintain or decrease)