Private nonprofit colleges can improve their financial sustainability by better serving low-income, first-generation, and/or students of color, a report from Rockefeller Philanthropy Advisors and the TIAA Institute finds.

According to the report, Aligning Financial Sustainability with Student Access and Success: Opportunities for Tuition-Dependent Private Colleges (44 pages, PDF), private nonprofit schools that are smaller, less competitive, tuition-dependent, and/or have relatively small endowments are consistently identified as financially vulnerable, but they could strengthen their financial position by redirecting resources from student recruitment to retention. Based on interviews with leaders from four colleges and universities, the report recommends approaches such as collaborating across departments, partnering with peer institutions, and analyzing data to better understand student needs and behavior.

The fourth in a series of studies by RPA and the TIAA Institute about the increasingly important role of philanthropic support for higher education, the report outlines how private nonprofit institutions need to reframe their efforts to serve low-income, first-generation, and BIPOC students as an investment opportunity rather than a challenge — and as a way to better align their efforts to bolster student access and success with financial sustainability. The report profiles efforts at the College of Saint Mary, Benedict College, Iowa Wesleyan University, and Dominican University of California.

"Concerns about financial sustainability, particularly for tuition-dependent colleges, are even greater in the aftermath of the COVID-19 pandemic," said TIAA Institute managing director Anne Ollen. "The recommendations and strategies shared in this report reinforce that it is possible — even helpful — to keep student success front and center while addressing financial concerns. Financial challenges don't necessarily require straying from institutional mission and values."