Liquidity as a Cornerstone of Financial Resilience in Higher Education

Nicholas Fortin - S&P Global

As colleges and universities face enrollment volatility, rising operating costs, shifting federal policy, and capital market uncertainty, proactive liquidity management has become central to sustaining operations and preserving strategic optionality.

This session will examine how private institutions define and measure liquidity and will explore practical strategies for building liquidity over time through operating discipline, working capital optimization, fundraising alignment, and thorough balance sheet management.

In addition to long-term liquidity planning, the presentation will address short-term cash management techniques, with a focus on tuition seasonality, aligning investment pools with cash flow cycles, structuring lines of credit, and coordinating treasury and investment functions to avoid unnecessary asset liquidation.

Capital liquidity will also be discussed, particularly how to preserve long-term financial sustainability while balancing funding for deferred maintenance, strategic initiatives, and major capital projects.

Finally, the session will clarify the role of unrestricted and quasi-endowed funds within liquidity frameworks, including board policy considerations, spending rule flexibility, and governance best practices.

Learning Objectives

  • Understand key measures of institutional liquidity and financial flexibility.
  • Identify practical strategies for building and preserving liquidity.
  • Evaluate approaches to managing liquidity for both operating and capital needs.

CPE Available