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Colleges’ Revenue and Expenditures, by Sector, FY 2016

Almanac 2018
August 19, 2018

For-profit institutions are by far the most tuition-dependent sector, relying on that money for about 90 percent of overall revenue. Four-year private nonprofit institutions relied on tuition for nearly 40 percent of their revenue, and four-year public institutions for under 23 percent. Two-year public institutions spent on instruction nearly two and a half times what they collected in tuition and fees, and four-year private nonprofit colleges devoted almost 84 percent of the amount of revenue they got from tuition and fees to instruction. Two-year and four-year private nonprofit institutions were the only sectors in which total expenses exceeded total revenue in the 2016 fiscal year.

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For-profit institutions are by far the most tuition-dependent sector, relying on that money for about 90 percent of overall revenue. Four-year private nonprofit institutions relied on tuition for nearly 40 percent of their revenue, and four-year public institutions for under 23 percent. Two-year public institutions spent on instruction nearly two and a half times what they collected in tuition and fees, and four-year private nonprofit colleges devoted almost 84 percent of the amount of revenue they got from tuition and fees to instruction. Two-year and four-year private nonprofit institutions were the only sectors in which total expenses exceeded total revenue in the 2016 fiscal year.


Return to the Almanac home page, or go to the Profession, Students, Finance, or States section. To purchase a copy of the Almanac in print or as a downloadable interactive PDF, visit the Chronicle Store. Help guide us to give you the data you need by taking our 10-minute online Almanac survey.


4-year public institutions (684 colleges)

Operating revenueAmountShare of net total
Tuition and fees $63,914,460,579 22.5%
Federal grants and contracts $24,547,547,660 8.6%
State grants and contracts $5,685,080,885 2.0%
Local and private grants and contracts $11,983,722,228 4.2%
Sales and services of auxiliary enterprises $25,020,273,925 8.8%
Sales and services of hospitals $42,053,904,733 14.8%
Sales and services of educational activities $9,407,769,808 3.3%
Independent operations $1,504,142,371 0.5%
Other operating revenue $7,425,324,597 2.6%
Total operating revenue $191,542,226,786 67.4%

Nonoperating revenueAmountShare of net total
Federal appropriations $338,484,824 0.1%
State appropriations $50,482,627,848 17.8%
Local appropriations $855,737,378 0.3%
Federal grants $11,439,620,271 4.0%
State grants $2,968,059,198 1.0%
Local grants $158,588,965 0.1%
Gifts $7,749,181,090 2.7%
Investment income $1,874,716,400 0.7%
Other nonoperating revenue $4,245,438,053 1.5%
Total nonoperating revenue $80,112,454,027 28.2%

Additions and other revenueAmountShare of net total
Capital appropriations $4,573,483,769 1.6%
Capital grants and gifts $3,444,274,374 1.2%
Additions to permanent endowments $909,464,538 0.3%
Other revenues and additions $3,792,346,180 1.3%
Total other $12,719,568,861 4.5%
Total revenue $284,374,249,674 100.0%

ExpendituresAmountShare of net total
Instruction $81,687,206,574 29.7%
Research $33,664,324,251 12.3%
Public service $13,241,105,433 4.8%
Academic support $23,154,041,520 8.4%
Student services $13,580,922,025 4.9%
Institutional support $21,369,652,197 7.8%
Scholarships and fellowships $10,291,330,368 3.7%
Auxiliary enterprises $28,053,070,075 10.2%
Hospital services $41,240,197,968 15.0%
Independent operations $1,658,039,239 0.6%
Other expenditures $6,686,286,240 2.4%
Total expenditures $274,626,175,890 100.0%

4-year private nonprofit institutions (1,529 colleges)

RevenueAmountShare of net total
Tuition and fees $71,308,309,373 39.3%
Federal appropriations, grants, and contracts $16,759,969,001 9.2%
State appropriations, grants, and contracts $1,625,881,751 0.9%
Local appropriations, grants, and contracts $528,136,842 0.3%
Private gifts, grants, and contracts $26,754,867,997 14.7%
Contributions from affiliated entities $1,804,650,840 1.0%
Investment return -$2,760,449,100 -1.5%
Educational activities $7,038,316,433 3.9%
Auxiliary enterprises $17,531,513,769 9.7%
Hospitals $24,107,515,699 13.3%
Independent operations $6,645,036,023 3.7%
Other revenue $10,178,641,660 5.6%
Total revenue $181,522,390,288 100.0%

ExpendituresAmountShare of net total
Instruction $59,859,689,521 31.9%
Research $18,383,098,493 9.8%
Public service $2,725,521,671 1.5%
Academic support $15,879,082,074 8.5%
Student services $15,798,771,571 8.4%
Institutional support $24,582,102,778 13.1%
Auxiliary enterprises $16,662,331,281 8.9%
Net grant aid to students $910,872,994 0.5%
Hospital services $21,267,887,284 11.3%
Independent operations $6,208,077,901 3.3%
Other expenditures $5,326,100,542 2.8%
Total expenditures $187,603,536,110 100.0%

4-year private for-profit institutions (498 colleges)

RevenueAmountShare of net total
Tuition and fees $12,232,686,428 90.1%
Federal appropriations, grants, and contracts $519,399,038 3.8%
State and local appropriations, grants, and contracts $32,096,742 0.2%
Private grants and contracts $13,708,226 0.1%
Investment return $18,935,307 0.1%
Educational activities $304,278,901 2.2%
Auxiliary enterprises $254,881,026 1.9%
Other revenue $205,675,692 1.5%
Total revenue $13,581,661,360 100.0%

ExpendituresAmountShare of net total
Instruction $3,192,464,577 25.8%
Research and public service $15,716,246 0.1%
Academic and institutional support, and student services $8,017,190,155 64.8%
Auxiliary enterprises $323,370,480 2.6%
Net grant aid to students $32,325,018 0.3%
Other expenditures $784,586,956 6.3%
Total expenditures $12,365,653,432 100.0%

2-year public institutions (880 colleges)

Operating revenueAmountShare of net total
Tuition and fees $9,000,704,359 16.8%
Federal grants and contracts $1,545,977,943 2.9%
State grants and contracts $1,701,124,215 3.2%
Local and private grants and contracts $484,580,141 0.9%
Sales and services of auxiliary enterprises $1,568,085,118 2.9%
Sales and services of hospitals $0 0.0%
Sales and services of educational activities $145,053,384 0.3%
Independent operations $0 0.0%
Other operating revenue $710,238,192 1.3%
Total operating revenue $15,155,763,352 28.2%

Nonoperating revenueAmountShare of net total
Federal appropriations $43,441,502 0.1%
State appropriations $13,739,398,920 25.6%
Local appropriations $10,541,620,287 19.6%
Federal grants $8,888,318,932 16.6%
State grants $1,753,730,617 3.3%
Local grants $188,372,770 0.4%
Gifts $282,514,282 0.5%
Investment income $144,265,104 0.3%
Other nonoperating revenue $696,630,894 1.3%
Total nonoperating revenue $36,278,293,308 67.6%

Additions and other revenueAmountShare of net total
Capital appropriations $1,689,281,610 3.1%
Capital grants and gifts $297,608,937 0.6%
Additions to permanent endowments $12,670,112 0.0%
Other revenues and additions $263,954,778 0.5%
Total other $2,263,515,437 4.2%
Total revenue $53,697,572,097 100.0%

ExpendituresAmountShare of net total
Instruction $22,022,415,538 42.7%
Research $23,895,030 0.0%
Public service $731,065,853 1.4%
Academic support $4,544,504,254 8.8%
Student services $5,685,124,163 11.0%
Institutional support $7,930,573,813 15.4%
Scholarships and fellowships $5,011,928,611 9.7%
Auxiliary enterprises $2,169,364,231 4.2%
Hospital services $0 0.0%
Independent operations $0 0.0%
Other expenditures $3,410,669,534 6.6%
Total expenditures $51,529,541,027 100.0%

2-year private nonprofit institutions (93 colleges)

RevenueAmountShare of net total
Tuition and fees $387,692,671 72.2%
Federal appropriations, grants, and contracts $39,939,230 7.4%
State appropriations, grants, and contracts $5,091,743 0.9%
Local appropriations, grants, and contracts $412,273 0.1%
Private gifts, grants, and contracts $20,044,638 3.7%
Contributions from affiliated entities $16,884,673 3.1%
Investment return $926,221 0.2%
Educational activities $4,663,119 0.9%
Auxiliary enterprises $39,078,720 7.3%
Hospitals $0 0.0%
Independent operations $0 0.0%
Other revenue $22,500,891 4.2%
Total revenue $537,234,179 100.0%

ExpendituresAmountShare of net total
Instruction $204,410,049 35.7%
Research $849,292 0.1%
Public service $1,331,592 0.2%
Academic support $77,488,412 13.5%
Student services $97,466,366 17.0%
Institutional support $110,285,583 19.3%
Auxiliary enterprises $34,642,683 6.0%
Net grant aid to students $1,799,656 0.3%
Hospital services $0 0.0%
Independent operations $0 0.0%
Other expenditures $44,529,959 7.8%
Total expenditures $572,803,592 100.0%

2-year private for-profit institutions (513 colleges)

RevenueAmountShare of net total
Tuition and fees $3,115,759,603 89.7%
Federal appropriations, grants, and contracts $193,912,728 5.6%
State and local appropriations, grants, and contracts $14,583,274 0.4%
Private grants and contracts $1,193,145 0.0%
Investment return $5,525,425 0.2%
Educational activities $25,129,082 0.7%
Auxiliary enterprises $57,129,748 1.6%
Other revenue $60,937,300 1.8%
Total revenue $3,474,170,305 100.0%

ExpendituresAmountShare of net total
Instruction $1,049,481,527 30.7%
Research and public service $1,963,599 0.1%
Academic and institutional support, and student services $1,862,787,933 54.6%
Auxiliary enterprises $75,856,516 2.2%
Net grant aid to students $2,442,787 0.1%
Other expenditures $422,223,676 12.4%
Total expenditures $3,414,756,038 100.0%

Note: Data are based on degree-granting institutions in the United States that receive Title IV federal student aid. Because revenue and expenditure categories would not be comparable, the table excludes 11 four-year public institutions and three two-year public institutions that use an accounting method different from that of other public institutions. The 11 omitted four-year institutions, which include Pennsylvania State University at University Park, Temple University, and the University of Pittsburgh, together reported $3.5 billion in tuition and fees and $11.8 billion in total revenue for the 2016 fiscal year, along with $11.7 billion in expenditures. In this table, the figures for tuition and fees, which exclude room and board, are net after discounts and allowances. Federal nonoperating grants include Pell Grants. Expenditures for instruction, research, public service, academic and institutional support, and student services include wages and benefits to employees in those areas. “Student services” include admissions, financial-aid administration, career guidance, and student activities. “Educational activities” include sales of goods and services incidental to instruction, like film rentals, scientific and literary publications, and testing services. “Auxiliary enterprises” include residence halls, food services, employee parking, student unions, and college stores. Appropriations, gifts, grants, and other revenues are counted for the current year regardless of whether their use is restricted. Percentages have been rounded. Questions or comments on the Almanac should be sent to the Almanac editor.

Source: Chronicle analysis of U.S. Department of Education data

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A version of this article appeared in the August 24, 2018, issue.
Read other items in this Finance: Almanac 2018 package.
We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
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