Cabrini University's recent closure offers critical lessons for financially struggling institutions. Key insights highlight the importance of liquidity management to prevent chaotic financial crises. Many colleges face pressures to draw heavily from endowments to support operations, creating risks for future solvency. Additionally, deferred maintenance has emerged as a significant issue that institutions often overlook. Collaborative partnerships, like Cabrini's transition to Villanova University, are also essential in providing necessary resources during times of financial distress, which can help avert drastic decisions such as closures.
Running out of cash can lead to chaotic closures; financial awareness and liquidity are critical for struggling institutions facing potential sell-off or closure.
Depending on liquidity, colleges may draw excessively on endowments to support operations, risking future resources and potentially leading to institutional closure.
Deferred maintenance is a growing concern for colleges; neglecting it places institutions at significant risk. Proactive maintenance is essential to avoid crises.
Collaborative partnerships, such as Cabrini's with Villanova University, can provide essential support and resources that may stabilize institutions facing financial difficulty.
#financial-management #higher-education #endowment-issues #institutional-closure #deferred-maintenance
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