From Tuition-Based to Philanthropy-Based Financing

Sep 24, 2018, 12:10 PM

(from Nonprofit Quarterly) St. John’s College, a private liberal arts college with campuses in Santa Fe and Annapolis, is slashing its annual tuition from $52,000 to $35,000 this next school year, with plans to make up the revenue loss through a $300 million fundraising campaign. Almost $200 million has already been committed, including a $50-million matching grant from the family foundation of the Winiarskis, both alumni. This plan to move from a tuition-based to a new “philanthropy-centered model” differs from the tuition resets recently announced by a growing set of higher educational institutions. Those tuition decreases come with a decrease in grants and scholarships. St. John’s plan, however, could represent a new business model for private colleges. However, less than one percent of the nation’s colleges receive 28 percent of all gifts, which would make that change a daunting challenge for many institutions.