Financially stressed private institutions of higher education: The fiscal performance effects of market expansion

The focus of this study is to determine the fiscal performance effects of market expansion on financially stressed (as defined) private not-for-profit institutions of higher education (NFPIOHE). This study recognizes that there are substantial differences between not-for-profit and for-profit organizations. These differences are supported by extensive research and the conceptual construct of a new organizational model for the university--The Adaptive Model. This new organizational model, which also demonstrates the complexity of the university structure in conjunction with the research, is presented and reviewed to emphasize the significant differences that are inherent in NFPIOHE when compared to the organizational structures found in most for-profit institutions. It is this validation of the differences that create the requirement for an independent study before a for-profit concept can be considered transferable to a NFPIOHE.;This study includes a financial review and analysis of nineteen colleges which became coeducational during a ten year period commencing with 1981. This change from single-sex to coed essentially resulted in an immediate substantial increase in the potential student pool or market. The colleges are divided into two categories: The first category is composed of eleven colleges with limited financial resources (as defined) and are the focus for the study. The second category consists of eight colleges which are considered to be more affluent.;The primary financial and other data used as a basis for this study is information reported by each of the colleges to the National Center for Education Statistics. These data are evaluated through the use of comparative ratio and trend analyses and are presented in graphs, tables and charts which form the basis for the study's observations and conclusions.;This study supports the concept that the financial performance of an economically stressed private NFPIOHE will be stabilized and/or enhanced by increasing its market share. The study's validation of the transferability of a for-profit concept, and the conceptual construction of a new organizational model--The Adaptive Model--creates a means for conducting additional marketing, organization and comparative performance studies. Recommendations for such additional studies are provided.