How to generate flexible dollars with auxiliary unit revenue

Increasing Central Fungible Dollars

The majority of non-athletic auxiliary units generate enough revenue to cover their own costs and debt service. And many of these units return a portion of surplus revenue to central administration, though the budgeting mechanism varies. Absent specific state restrictions, auxiliary revenue returned to central administration is highly fungible and can be used to fund other priorities. One of the best opportunities for institutions to improve auxiliary contributions to the institution, without passing costs onto students, is to increase auxiliary efficiency.

Our efficiency "cheat sheets"—a supplement to our study Increasing Central Fungible Dollars—are designed to help business executives identify opportunities for improvement and cost savings. We focus on four units: the bookstore, dining, housing, and parking.

'Cheat sheets' for different auxiliary units

Each cheat sheet details foundational practices that every institution can pursue. In addition to providing a detailed description for each practice, each sheet includes a case study and an evaluation of the tactic’s financial impact and implementation difficulty.

Bookstore
Sample tactics include: allowing payment with students' accounts, offering student-worker bonus as bookstore credit, and opening an in-store coffee shop and convenience stores to increase revenue and drive store traffic.

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Dining
Sample tactics include: developing catering services for on-campus events, establishing contracts with local businesses and charities, offering meal plans for faculty and staff, and centralizing campus dining locations.

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How mature are your units?

Download our FAQ to learn more about how our functional diagnostic can enhance functionality at your institution.

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Increasing Central Fungible Dollars

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