Revenue-Sharing Graduate Programs

Revenue-Sharing Graduate Programs

The entrepreneurial activities of schools and colleges at the University of Connecticut contribute to its teaching, research, and service mission both directly through providing educational opportunities in new or emerging fields and indirectly through providing funds to enhance scholarly research, creative activity, innovation, and training. The University is interested in encouraging and providing incentives for academic units to develop academic programs that can both meet the needs of identifiable, targeted new audiences and generate new sources of revenue.

For revenue-sharing graduate programs graduate programs, success depends on having a clear and market-validated program value proposition and a delivery modality (face-to-face, hybrid, online) aligned with target market demand profile.  Thus, programs need to be intentionally designed to be entrepreneurial and must be approved for this status.


What is an Revenue-Sharing Graduate Program?

Revenue-sharing programs (RSPs) are graduate degree or certificate programs for which a percentage of the revenue generated by the program is returned to and shared by the school/college(s) and department(s) that offer the program. To be considered an RSP, a program must attract new students who are not simultaneously enrolled in another UConn degree program and must lead to overall net enrollment growth. RSPs can be tuition-based or fee-based and can be face-to-face, hybrid/blended or fully online.

What Types of Programs Can Qualify?

Designation as a revenue-sharing program requires that the program have specified characteristics and meet certain requirements. Below, you will find explanations of the types of programs that would typically be appropriate for revenue-sharing, versus those that would not.

Certificates

Revenue-sharing: These target and enroll new students who are typically post-baccalaureate working professionals not simultaneously enrolled in another UConn degree or certificate program.

Non-revenue-sharing: These attract and primarily enroll existing students who are currently matriculated in another UConn graduate degree or certificate program.

Master’s Programs

Revenue-sharing: These are typically non-thesis (Plan B) programs, such as professional science master’s programs, that do not offer graduate assistantships and are designed to be completed either on a full-time or part-time basis. These also include some accelerated master’s programs (such as “4+1”, “fast-track” and “5th year” programs – see more details below).

Non-revenue-sharing: These are typically 1-2 year programs that offer a Plan A thesis option and often provide Graduate Assistantships. Students typically pursue their degree on a full-time basis.

Doctoral Programs

Revenue-sharing: These are professional programs (e.g., DNP) that are research-informed but practice-based. They do not typically offer Graduate Assistantships.

Non-revenue-sharing: These are traditional research-based programs that require significant research and typically fund a high proportion, although not necessarily all, of their students.

 

What Are Accelerated Pathways for Master’s Degrees and Are They Always Revenue-Shared?

Accelerated master’s programs are established pathways for combined bachelor’s/master’s degrees (requiring 30 or more credits for the master's degree) that allow students to complete the master’s degree program more rapidly than if they were to complete a bachelor’s degree and later enroll in a master’s program. Accelerated programs follow 3 or 4 years of undergraduate study, depending on the program and the student. Students in the program have UConn undergraduate degrees and may use up to 12 credits of required graduate coursework taken prior to matriculation (as an undergraduate or a non-degree student) toward their master’s degree, thereby allowing the master’s degree to be earned more quickly than usual. Initial acceptance into accelerated programs can be done informally within a department, or can be done through a pre-Grad application to the program in Slate. In all cases, however, students must also apply to the master’s degree using the Grad application in Slate (typically in the final semester of their undergraduate degree) and be matriculated into The Graduate School. Earlier admission to an accelerated program either informally by the program or through Slate does not constitute admission to The Graduate School.

Accelerated pathways may or may not be appropriate for revenue-sharing. To be considered a revenue-shared accelerated master’s program, a program must lead to students staying at UConn to complete a master’s degree who generally would not have been expected to do so otherwise. In addition, they must meet the criteria for revenue-sharing status described below. If a traditional master’s program adds an accelerated pathway, only net new enrollment/revenue will qualify for revenue-sharing.

What Determines if a Program Qualifies for Revenue-Sharing Status?

To qualify for revenue-sharing status, a program must typically meet the following criteria:

  • The program extends the University’s academic reach to include new student audiences not otherwise served by existing programs. It should complement existing programs and not compete with them for students.
  • The program has a strategic marketing plan for actively recruiting students to the program from external applicant pools and/or existing undergraduate students (e.g., through a pro-active accelerated master’s program).
  • • The program has and will maintain a 5-year budget with clearly identified enrollment, revenue, and cost assumptions.
  • Once fully operational, the program will generate sustainable positive net-revenue for the University after covering associated (incremental) variable costs (e.g., instructional and marketing costs) and overhead costs. While there is no standard minimum enrollment requirement, it must be clearly documented that the program will generate positive net revenue. For accelerated master’s programs, this initial target should be around 10 new graduate enrollments per year.
  • The program has an explicit plan to use any net revenue (above and beyond what is used to cover costs) in a manner that promotes faculty research, undergraduate/graduate education, or public engagement, consistent with the University’s stated goals to increase research and scholarship, to offer life-transformative education to all students at the University, and to strengthen our state’s economic growth through innovation, entrepreneurism, and workforce development.

Once granted, the revenue-sharing status of a program is documented in an MOU and subject to periodic review by the Office of the Provost to ensure that the program is attracting new students and meeting enrollment/revenue expectations. Programs that fall short of expectations may have their revenue-sharing status removed, or may need to be discontinued.

How does Revenue-Sharing Work?

Revenue sharing for new (or newly designated) programs or pathways follow these general guidelines:

  • For entirely new programs with no previous enrollments and no similar existing programs, 80% of revenue will be distributed to the school or college and 20% of revenue will be distributed to central administration.
  • For newly designated programs and accelerated pathways where there are pre-existing enrollments or similar existing programs, the revenue return from central administration will be based on revenue generation above a clearly specified an approved profit baseline. The baseline represents expected profits from existing or similar programs. The existing program is expected to maintain current profit according to the baseline, and only revenue that exceeds that baseline will be shared. There are two primary examples that fall into this category:
    • A new revenue-sharing program that is similar to an existing program with a traditional (tuition-based) budget model: If the existing program meets the profit baseline, the 80% of revenue attributed to the new program and collected by the school or college will be retained by the school or college. If the existing program does not meet the profit baseline, the school or college will be responsible for providing up to that baseline amount back to central administration.
    • An accelerated pathway in a program with a traditional (tuition-based) budget model: 80% of revenue beyond the baseline will be distributed to the school or college.
  • Revenue-sharing at the school and college level:
    • Each school or college should, through its own internal process, determine the manner and extent to which revenue received would be passed on to the revenue-sharing program or the sponsoring department(s).
    • Programs that are associated with multiple schools or colleges must have a formal agreement (MOU) to document revenue sharing rules across units.
  • Programs may request a status adjustment from a traditional to revenue-shared budget model based on a relevant program change (e.g., change in modality from face-to-face to online that necessitates a change from tuition to fees; growth/expansion of an existing accelerated pathway). These cases are unique and must be justified and approved by the school or college, provost, and budget office. These changes may require relinquishing permanent 2-ledger funding in exchange for anticipated ledger 4 revenue.

Note regarding revenue-sharing programs established prior to Fiscal Year (FY) 2021: Historical revenue sharing rates continue to be honored with the exception of any programs with a return rate below 80%, which were increased to 80% effective FY21. These programs are not required to have a revenue sharing MOU; however, the Office of the Provost may request that an MOU be developed for any existing programs where the financial terms are not clearly documented.

Request Revenue-Sharing Status

Requesting revenue-sharing status is “Step 5” of the six steps for graduate program approval. View all six steps through the link below before moving forward.

Steps for Program Approvals

Programs seeking revenue-sharing status must be approved for this status by the Office of the Provost prior to final submission of a proposal through the GPAR system. This review is coordinated by Academic Program Development Support.

  1. To make a request for revenue-sharing status, submit the following to to Mike Jones, Director of Academic Program Development Support:
    1. Market data report
    2. Draft GPAR Proposal
    3. Enrollment and net profit projections for the program, accompanied by completed questionnaire on necessary resources: Revenue Forecast Template.
  2. Academic Program Development Support will work with submitter on remaining questions regarding required resources, downstream costs for teaching other courses if current faculty will provide instruction, and how the program fits into the school or college’s total range of offerings.

If approved for revenue-sharing status by the Office of the Provost, all terms will be included in a signed Memorandum of Understanding (MOU) between the department, school or college, Provost, and the Budget Office. A final, signed MOU will be provided back to the program representative to include in the final submission of the GPAR proposal. For any questions related to this MOU, please reach out to Mary Greenwell.

Note: If a GPAR proposal indicates that the program is seeking revenue-sharing status, the system will not allow you to submit the proposal without attaching this final, signed MOU.

Contacts

Unit/Role Contact
Academic Program Development Support Mike Jones, Director
The Graduate School Mary Bernstein, Associate Dean
Leslie Shor, Vice Provost for Graduate Education and Dean
Office of the Provost
Revenue-Sharing Program Oversight Dan Schwartz, Vice Provost for Academic Operations
Academic and Board of Trustees Approval Sarah Croucher, Assistant Vice Provost for Academic Affairs
Revenue Sharing and Financial Terms Mary Greenwell, Finance & HR Coordinator