Explore the argument
Where the money comes from
A university has several income streams, and each arrives with different restrictions, risks and costs.
The key pointTotal income tells us much less than the mix of income and the obligations attached to it.
Universities draw income from tuition fees, public teaching grants, research funders, international students, residences, commercial activity and philanthropy. These streams are not interchangeable.
Income is not the same as surplus
A pound of research income may require the institution to provide additional space, equipment and staff time. A pound of accommodation income comes with the costs of owning and maintaining buildings. The useful question is therefore not merely how much money comes in, but what it costs the university to earn it.
This page will eventually include a simple flow diagram showing the main income streams and the activities they support.
Why it matters
The funding model creates cross-subsidies: surpluses in one area are used to cover shortfalls elsewhere. That makes the whole institution sensitive when a previously strong income stream weakens.