Funding Models for Education Abroad Operations

The following models exist on a continuum from fully institutionally funded to fully self-funded, and combinations between. The majority of institutions dedicate some central funding for education abroad, and a majority of those institutions have some hybrid structure between central funding and self-generated revenue, no doubt a result of so much variation in institutional legacies.

• A centrally-funded education abroad unit operates out of the university general fund covering all costs. This model has the advantage of stability, but also the disadvantage of being subject to fluctuations in general fund revenue. At many institutions, especially those with a long-established program, education abroad is treated as an academic department; its administration and all program costs are covered from central administrative funds, based on enrollment and curricular responsibilities
• A self-sustaining education abroad unit operates with financial autonomy, under a cost recovery model where all costs are largely or entirely covered by student participation fees. This model offers the advantages of being independent from budget cuts to the institution and possible flexibility in hiring and other operations. A potential disadvantage, however, is that significant decreases in enrollments can have dramatic impacts on the finances needed to operate.
• In a hybrid model, the education unit operates with the university general fund paying administrative costs (e.g. staff, office space, communications) while program operation costs (e.g. staff travel, program costs abroad) are covered by student participation fees. Since enrollment varies from year to year, currency rates shift, emergencies arise, etc., careful budget planning and enrollment management are essential.
• For a new operation, the emerging unit may have no defined education abroad funding model to generate its revenue. Some operations have developed with limited funding; this situation may provide more flexibility to build from the models above

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Quadrant-style approach locating operational funding within quadrants of funding sources (SOURCE: (2018). Education Abroad Operational Management: Strategies, Opportunities, and Innovation. A Report on ISA ThinkDen):

*These examples are illustrative; not all offices will define these expenses in the same way.

• Assess application or participation fees to students such as a fee charged to students at one or more key junctures in the process, from initiating an application, to submitting an application to ultimately being accepted into to a program; these fees are more common at public institutions than private ones
• Assess fees to third-party providers to exhibit at fairs or conduct information sessions.
• Include program fees for participating in an education abroad program such as a package fee designed to cover expenses like tuition, housing, meals, local transportation, and insurance as well as administrative needs
• Offer an on-campus passport facility: many colleges and universities have a passport acceptance facility on campus which is open to the public and offering services such as passport applications, photos and other general travel related paraphernalia. Once an application to the Dept of State is accepted, the institutional facility could collect a processing fee that creates revenue for the office.
• Create a School of Record relationship: an accredited institution of higher learning that documents and awards credit for education abroad programs or institutions that are not accredited
• Seek corporate sponsorship: a partnership established with a private entity to provide support to the office and/or student scholarships

Cook, G. (2018, July/August). Structuring a Financially Sustainable Education Abroad Office, International Educator, 27(4), pp. 44-47 http://media.virbcdn.com/files/7f/12d05b0c0b1eacff-EAcolumn_julyaug18.pdf 

Heisel, Margaret and Kissler, Gerald R. (2010, June). Financial Strategies for Expanding Study Abroad: Models, Mission, Management, and Means for Growth. NAFSA: Association of International Educators and Association of Public and Land-Grant Universities https://www.nafsa.org/system/files/resource-pdf/Financial%20Strategies%20for%20Expanding%20Study%20Abroad.pdf 

(2018). Education Abroad Operational Management: Strategies, Opportunities, and Innovation. A Report on ISA ThinkDen https://educationaltravel.worldstrides.com/ISA-Whitepaper-Download_ISA-ThinkDen-Report-LP.html 

(2018). The Forum on Education Abroad. State of the Field 2017. https://forumea.org/wp-content/uploads/2018/03/ForumEA-State-of-the-Field-18-web-version.pdf