League for Innovation in the Community College Spring 2020 | Page 8

MONETIZING AFFINITY
On many campuses, fundraising is the least controversial
revenue stream. American higher education raises $40 billion
a year from charitable foundations, alumni, corporations, and
the general public. Many community colleges have barely
scratched the surface when it comes to alumni engagement,
donor stewardship, major gifts, legacy giving, or naming rights.
New technologies are opening opportunities for online and
mobile donations, focused days of giving, and crowdfunding
for everything from band uniforms to research labs.
Before exploring other revenue options, be sure your
advancement operations are maximizing their potential.
Obviously, for major American universities, NCAA athletics
generate billions of dollars in broadcast contracts, stadium
billboards, luxury boxes, and ticket revenues. But those
institutions also spend massively on athletic facilities, player
scholarships, and coaches’ salaries. Most Division I schools
lose twice as much on athletics as the champion schools profit.
Ventures that don’t achieve a net profit are not revenue at
all. And although the NCAA example may seem distant from
community colleges, this lesson is close to home for campuses
making the difficult decision to cut beloved but costly athletic
programs.
Loyal alumni can provide ongoing revenue to their alma mater
quite literally from cradle to grave, buying infant spirit wear for
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League for Innovation in the Community College Innovatus
the next generation and collegiate caskets or burial urns for
their final resting place. Your college may already offer affinity
credit cards; group insurance; alumni travel; or institutionally
branded coffee, wine, or license plates. About fifty American
colleges are home to campus retirement villages, a permanent
homecoming bundled with tuition fees. The intensity of your
school spirit and alumni engagement will determine the
potential of affinity approaches.
LEVERAGING YOUR CAMPUS
College campuses are miniature cities, with a range of revenue
opportunities from parking fees and fines, vending machines,
food services, and other retail. Edmonton’s NorQuest College
anticipates $100,000 a year from operating a campus bank
branch. Student dining cards or stadium concession sales can
generate steady revenue. Maine’s Unity College sells fresh
produce and branded hot sauce from the campus farm. The
challenge is to operate campus services at sufficient profit
without making stakeholders feel exploited.
Many institutions operate profitable student residence halls or
outsource them through partnerships with private investors.
More luxurious campus dorms can double as conference
centres in the summer, while on-campus hotels provide
accommodation for alumni and guests, and work experience
for students. If your buildings are particularly scenic, you can
rent the campus as a backdrop for motion picture productions.