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

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.