Strategies, Performances and Profiling of a Sample of U.S. Universities in 2012
ABSTRACT
The global economic crisis is affecting performances of not-for-profits. At the same time donors are targeted by a pressing good-cause related marketing, so that the competition for philanthropy is particularly keen. U.S. universities can be public, not-for-profit and for-profit. U.S. not-for-profit universities are confronted with different marketing, fundraising and revenue diversification. Above all, marketing concerns customers and their segmentation and their purchasing-power exploitation; fundraising aims to gain the trustworthiness of donors, instead. The aim of this paper is the analysis of the revenue diversification of a sample of 100 U.S. not-for-profit universities according to IRS (Internal Revenue Service) Forms. These 100 U.S. universities had the highest 2012’s revenues for the Guidestar ranking (www.guidestar.org). The cluster analysis gives evidence that the highest gain and the highest solvency are both connected with the implementation of revenue diversification for one profile. The most crowded cluster is the Marketing Expert with the second highest gain.
The global economic crisis is affecting performances of not-for-profits. At the same time donors are targeted by a pressing good-cause related marketing, so that the competition for philanthropy is particularly keen. U.S. universities can be public, not-for-profit and for-profit. U.S. not-for-profit universities are confronted with different marketing, fundraising and revenue diversification. Above all, marketing concerns customers and their segmentation and their purchasing-power exploitation; fundraising aims to gain the trustworthiness of donors, instead. The aim of this paper is the analysis of the revenue diversification of a sample of 100 U.S. not-for-profit universities according to IRS (Internal Revenue Service) Forms. These 100 U.S. universities had the highest 2012’s revenues for the Guidestar ranking (www.guidestar.org). The cluster analysis gives evidence that the highest gain and the highest solvency are both connected with the implementation of revenue diversification for one profile. The most crowded cluster is the Marketing Expert with the second highest gain.
Cite this paper
Besana, A. and Esposito, A. (2015) Strategies, Performances and Profiling of a Sample of U.S. Universities in 2012. Open Journal of Applied Sciences, 5, 83-90. doi: 10.4236/ojapps.2015.53008.
Besana, A. and Esposito, A. (2015) Strategies, Performances and Profiling of a Sample of U.S. Universities in 2012. Open Journal of Applied Sciences, 5, 83-90. doi: 10.4236/ojapps.2015.53008.
References
[1] Carrol, D.A. and Stater, K.J. (2009) Revenue Diversification in Nonprofit Organization: Does It Lead to Financial Stability? Journal of Public Administration Research and Theory, 19, 947-966.
http://dx.doi.org/10.1093/jopart/mun025
http://jpart.oxfordjournals.org/content/19/4/947.abstract [2] OECD (2014) Education at a Glance 2014: OECD Indicators. OECD Publishing, Paris.
http://dx.doi.org/10.1787/eag-2014-en [3] Cantwell, B. and Barrett, J.T. (2013) Global Status, Intra-Institutional Stratification and Organizational Segmentation: A Time-Dynamic Tobit Analysis of ARWU Position among U.S. Universities. Minerva, 51, 195-223. http://dx.doi.org/10.1007/s11024-013-9228-8 [4] Choi, A.S. (2009) Willingness to Pay: How Stable Are Estimates? Journal of Cultural Economics, 33, 301-310. http://dx.doi.org/10.1007/s10824-009-9103-5 [5] Leslie, L.L., Slaughter, S., Barrett, J.T. and Zhang, L. (2012) How Do Revenue Variations Affect Expenditures within U.S. Research Universities? Research in Higher Education, 53, 614-639.
http://dx.doi.org/10.1007/s11162-011-9248-x [6] Dolnicar, S. and Lazarevski, K. (2009) Marketing in Non-Profit Organizations: An International Perspective. International Marketing Review, 26, 275-291.
http://dx.doi.org/10.1108/02651330910960780 [7] Dolnicar, S., Irvine, H. and Lazarevski, K. (2008) Mission or Money? Competitive Challenges Facing Public Sector Nonprofit Organizations in an Institutionalized Environment. International Journal of Nonprofit and Voluntary Sector Marketing, 13, 107-117.
http://dx.doi.org/10.1002/nvsm.311 [8] Humpheys, J., Electris, C., Filosa, J. and Grace, K. (2010) Educational Endowments and the Financial Crisis: Social Costs and Systemic Risks in the Shadow Banking System. Center for Social Philanthropy, Tellus Institute, Boston. [9] Kotler, P. and Levy, S. (1969). Broadening the Concept of Marketing. Journal of Marketing, 33, 10-15.
http://dx.doi.org/10.2307/1248740 [10] Christensen, C.M. and Horn, M.B. (2013) Innovation Imperative: Change Everything. New York Times, 13 November 2013. [11] Grant Thorton LPP (2014) The State of Higher Education in 2014.
http://www.grantthornton.com/HigherEd2014 [12] Cunet and Leads Council (2012) Higher Education Marketing Trends Benchmarking Report.
http://www.cunet.com/wp-content/uploads/2012/06/CUnet_2012_Benchmark_ForProfit.pdf [13] Williams Jr., R. L. and Omar, M. (2014) How Branding Process Activities Impact Brand Equity within Higher Education Institutions. Journal of Marketing for Higher Education, 24, 1-10.
http://dx.doi.org/10.1080/08841241.2014.920567
[1] Carrol, D.A. and Stater, K.J. (2009) Revenue Diversification in Nonprofit Organization: Does It Lead to Financial Stability? Journal of Public Administration Research and Theory, 19, 947-966.
http://dx.doi.org/10.1093/jopart/mun025
http://jpart.oxfordjournals.org/content/19/4/947.abstract [2] OECD (2014) Education at a Glance 2014: OECD Indicators. OECD Publishing, Paris.
http://dx.doi.org/10.1787/eag-2014-en [3] Cantwell, B. and Barrett, J.T. (2013) Global Status, Intra-Institutional Stratification and Organizational Segmentation: A Time-Dynamic Tobit Analysis of ARWU Position among U.S. Universities. Minerva, 51, 195-223. http://dx.doi.org/10.1007/s11024-013-9228-8 [4] Choi, A.S. (2009) Willingness to Pay: How Stable Are Estimates? Journal of Cultural Economics, 33, 301-310. http://dx.doi.org/10.1007/s10824-009-9103-5 [5] Leslie, L.L., Slaughter, S., Barrett, J.T. and Zhang, L. (2012) How Do Revenue Variations Affect Expenditures within U.S. Research Universities? Research in Higher Education, 53, 614-639.
http://dx.doi.org/10.1007/s11162-011-9248-x [6] Dolnicar, S. and Lazarevski, K. (2009) Marketing in Non-Profit Organizations: An International Perspective. International Marketing Review, 26, 275-291.
http://dx.doi.org/10.1108/02651330910960780 [7] Dolnicar, S., Irvine, H. and Lazarevski, K. (2008) Mission or Money? Competitive Challenges Facing Public Sector Nonprofit Organizations in an Institutionalized Environment. International Journal of Nonprofit and Voluntary Sector Marketing, 13, 107-117.
http://dx.doi.org/10.1002/nvsm.311 [8] Humpheys, J., Electris, C., Filosa, J. and Grace, K. (2010) Educational Endowments and the Financial Crisis: Social Costs and Systemic Risks in the Shadow Banking System. Center for Social Philanthropy, Tellus Institute, Boston. [9] Kotler, P. and Levy, S. (1969). Broadening the Concept of Marketing. Journal of Marketing, 33, 10-15.
http://dx.doi.org/10.2307/1248740 [10] Christensen, C.M. and Horn, M.B. (2013) Innovation Imperative: Change Everything. New York Times, 13 November 2013. [11] Grant Thorton LPP (2014) The State of Higher Education in 2014.
http://www.grantthornton.com/HigherEd2014 [12] Cunet and Leads Council (2012) Higher Education Marketing Trends Benchmarking Report.
http://www.cunet.com/wp-content/uploads/2012/06/CUnet_2012_Benchmark_ForProfit.pdf [13] Williams Jr., R. L. and Omar, M. (2014) How Branding Process Activities Impact Brand Equity within Higher Education Institutions. Journal of Marketing for Higher Education, 24, 1-10.
http://dx.doi.org/10.1080/08841241.2014.920567