Mission and Margin: A Practical Guide to University Finances

by Daniel Diermeier, Brett C. Sweet

Overview

An insider’s guide to university finances, for non-insiders.

The finances of higher education have never been more challenging. From two-year institutions to the Ivy Leagues, from department chairs to provosts, administrators face revenue shortfalls and financial insecurity. A fundamental understanding of financial management is more essential than ever for university leaders at every level—as is a true partnership between academic leaders and their CFOs.

In Margin and Mission, Daniel Diermeier and Brett Sweet distill the principles for successful financial management in higher education, based on their work together at Vanderbilt University. Their concise, practical guide develops the reader’s understanding step-by-logical-step with the help of real-world examples. Margin and Mission aims to give university leaders, from board members to department chairs, the knowledge to make sound economic decisions that preserve their institutions’ purpose—even in the face of uncertainty. 

Product Details

ISBN-13:	9780226844145
Publisher:	University of Chicago Press
Publication date:	11/24/2025
Edition description:	First Edition
Pages:	256
Product dimensions:	6.00(w) x 9.00(h) x (d)

About the Author

Daniel Diermeier is chancellor of Vanderbilt University and formerly the provost of the University of Chicago. He is the author of five books, most recently of Reputation Analytics, also published by the University of Chicago Press.


Brett C. Sweet is vice chancellor for finance and information technology and chief financial officer of Vanderbilt University. He formerly was the dean for administration and finance at Harvard University’s Faculty of Arts and Sciences.

Table of Contents

Preface
1. No Margin—No Mission
2. The Little Red Schoolhouse: Running a College
3. The Power of Financial Analysis: Scholarships and Fundraising
4. Buildings and How to Maintain Them: Depreciation
5. Follow the Cash
6. Operational Space Planning
7. The Economics of Research
8. Debt, Capital Markets, and Ratings
9. From College to University
10. But What About Parking?
11. Growing as a University
Acknowledgments
Appendix A: A Brief History of Higher Education in the United States, 1600s to Present
Appendix B: Competing Theories for Rising College Tuition: Baumol’s Cost Disease and Bowen’s Four Laws
Appendix C: Parkinson’s Law and Constraining Administrative Growth at Universities
Appendix D: Evolution of Endowment Spending Rules and Regulations
Appendix E: A Brief History of Facilities and Administrative (F&A) Rate Evolution in the United States
Appendix F: Debt Management and Bond Compliance
Appendix G: How Are PhDs Funded?
Appendix H: A Brief History of R&D Funding in the United States and Technology Transfer at Universities (the Bayh-Dole Act)
Appendix I: Higher Education “Classics”
Glossary
Notes
Index

Editorial Reviews

With clarity and concision, Mission and Margin does a terrific job of providing a primer on university finances for academic leaders (from chairs, deans, and provosts to presidents).

Sandro Galea | author of "Within Reason: A Liberal Public Health for an Illiberal Time"

Mission and Margin constructs a clear and accessible framework for understanding the financial management of universities for those who may understand the educational mission but have limited knowledge of the subtleties that arise when accounting concepts, appropriate to for-profit enterprises, are applied to universities.

John Y. Campbell | Harvard University