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Higher Ed in 2025: Top 5 Business Concerns and How Institutions Can Respond

October 13, 2025 |
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Higher Ed in 2025: Top 5 Business Concerns and How Institutions Can Respond
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For the past four years, NACUBO has surveyed chief business officers and other financial and administrative professionals about the challenges that confront them—and how they are working to support their institutions in navigating these pressing issues. More than 600 individuals responded to this year’s survey, and from that NACUBO compiled its Top 5 Higher Education Business Issues of 2025. This year and beyond, colleges and universities face a perfect storm of financial, political, and operational pressures. 

I recently joined our partners at NACUBO at their 2025 Planning, Budgeting, and Analytics Forum where, along with Liz Clark, Vice President, Policy and Research, NACUBO and Robert Kelchen, Professor and Department Head, Department of Educational Leadership and Policy Studies, University of Tennessee, Knoxville, we discussed the top five business concerns and what schools can do to meet these challenges head on.

1. Managing Unreliable Funding Sources

With declining enrollment and shifting policies, traditional revenue streams are faltering. Schools are diversifying income through micro-credentials, public-private partnerships, and innovative tuition models. Predictive analytics and mission-driven fundraising are helping stabilize finances. For those institutions with endowments, although they may not be able to fill all the funding gaps, schools may need to reconsider liquidity, spending, and taking on more risk to generate higher returns to offset the loss of other funding sources.

2. Amplifying the Value of Higher Ed

Public skepticism surrounding the value of higher education persists. Institutions are countering it with transparent data on graduate outcomes, embedded career pathways, and wraparound student services. Rebranding efforts and donor campaigns now emphasize affordability, access, and impact.

3. Navigating Political and Policy Disruptions

Federal and state funding uncertainties demand flexible financial models and stronger government relations. Legal risk management and coalition-building are becoming essential, while fundraising adapts to support advocacy and emergency needs.

4. Supporting and Maintaining the Workforce

Rising costs and talent shortages are straining staff morale. Schools are investing in flexible work models, compensation restructuring, and leadership development. Donor support is fueling faculty excellence and inclusive workplace initiatives.

5. Meeting Rising Operational Costs

Inflation and cybersecurity threats are driving up expenses. Institutions are prioritizing energy-efficient upgrades, shared services, and digital safety. Endowments are under pressure, prompting smarter investment strategies and fundraising for sustainability and tech innovation.

The Path Forward

Resilient institutions will align strategic planning with bold storytelling, diversified revenue, and investment discipline. By embracing change and centering mission-driven impact, higher education can thrive in 2025 and beyond.
George Suttles

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George Suttles

Executive Director

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Disclaimer

Certain information contained herein has been obtained from or is based on third-party sources and, although believed to be reliable, has not been independently verified. Such information is as of the date indicated, if indicated, may not be complete, is subject to change and has not necessarily been updated. No representation or warranty, express or implied, is or will be given by The Common Fund for Nonprofit Organizations, any of its affiliates or any of its or their affiliates, trustees, directors, officers, employees or advisers (collectively referred to herein as “Commonfund”) or any other person as to the accuracy or completeness of the information in any third-party materials. Accordingly, Commonfund shall not be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in, or omission from, such third-party materials, and any such liability is expressly disclaimed.

All rights to the trademarks, copyrights, logos and other intellectual property listed herein belong to their respective owners and the use of such logos hereof does not imply an affiliation with, or endorsement by, the owners of such trademarks, copyrights, logos and other intellectual property.

To the extent views presented forecast market activity, they may be based on many factors in addition to those explicitly stated herein. Forecasts of experts inevitably differ. Views attributed to third-parties are presented to demonstrate the existence of points of view, not as a basis for recommendations or as investment advice. Market and investment views of third-parties presented herein do not necessarily reflect the views of Commonfund, any manager retained by Commonfund to manage any investments for Commonfund (each, a “Manager”) or any fund managed by any Commonfund entity (each, a “Fund”). Accordingly, the views presented herein may not be relied upon as an indication of trading intent on behalf of Commonfund, any Manager or any Fund.

Statements concerning Commonfund’s views of possible future outcomes in any investment asset class or market, or of possible future economic developments, are not intended, and should not be construed, as forecasts or predictions of the future investment performance of any Fund. Such statements are also not intended as recommendations by any Commonfund entity or any Commonfund employee to the recipient of the presentation. It is Commonfund’s policy that investment recommendations to its clients must be based on the investment objectives and risk tolerances of each individual client. All market outlook and similar statements are based upon information reasonably available as of the date of this presentation (unless an earlier date is stated with regard to particular information), and reasonably believed to be accurate by Commonfund. Commonfund disclaims any responsibility to provide the recipient of this presentation with updated or corrected information or statements. Past performance is not indicative of future results. For more information please refer to Important Disclosures.