An economic recession affects an entire economy, including the non-profit sector. The impact could result from changes in government support, a decrease in donations, investment income, service fees or a combination. Many private universities and colleges, which rely on tuition and endowment, have been affected by a dip in enrollments, while their endowments shrink because of the recession and declining stock values. This study will examine how an economic recession can affect non-profit organizations, focusing on private, four-year higher education institutions in New England. Different types and sizes of schools will be affected differently. Since the large, well-known schools have more diverse income sources than small, less-recognized ones, the former will be less affected during an economic recession. This study will identify and define the main income sources for higher education institutions and conclude with some recommendations for ways these schools can weather the economic storm.
Recommended CitationLi, Yuanjun, "Non-Profit Organizations in a Down Economy: The Financial Performance of Higher Education Institutions in the New England Area" (2010). Honors Projects in Finance. Paper 10.