Financial Sustainability Factors of Higher Education Institutions: A Predictive Model

Amos Oppong Afriyie, PhD

Abstract

A growing number of private and public higher education institutions have faced financial un-sustainability challenges. Consequently, countries such as the United Kingdom and regions such as the European Union have instituted programs to assist higher education institution in making them financially sustainable (Browne et al. 2010), Organization for Economic Co-operation and Development, 2004). Similarly, Adventist higher education institutions have not been exempted from this challenge (Rock, 1991; White, 1897). This study supports the idea that not for-profit educational institutions should realize that financial sustainability is crucial for today's leaders facing the challenge of meeting today's cost and making concerted efforts to preserve or invest for the future generations. Nevertheless, to achieve financial sustainability, Adventist higher educational institutions need to maintain or increase its operations through internally-generated income or funds which are deemed to be flowing on a regular basis for the sustainability of its operation, without compromising the future of its sustainability.