Financial policies are viewed as buffers that protect the core activities of a college from fluctuation and that maximize the return of investments in all areas. Assumptions necessary for making financial policies are detailed and a strategy is outlined for developing financial policies that mesh with institutional plans. (Author/MLW)

Financial strategies, plans to increase return--and risk--up to the point (but not beyond) where the protection of core activities may begin to break down, are addressed. The stages for developing a financial strategy are: (1) formulate and examine academic program, research, and marketing strategies; (2) define core activities necessary to…