Target revenue allocation to the areas of greatest potential

Topics: Administration and Finance, Budgeting, Budget Models and Cost Allocations, Academic Affairs, Strategic Planning

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David AttisDavid Attis, Senior Director of Academic Research

Seeking new revenue, more colleges and universities are considering incentivizing academic units to grow by allocating them a share of the revenue they generate.

However, allocating all revenue to units versus retaining all revenue centrally is a false choice. Instead, institutions should first consider what type of revenue they want to grow and then select an allocation method that creates an incentive for the behavior they want.

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