DU’s Finances

Town Halls

The Office of Business & Financial Affairs hosts periodic town hall meetings that provide insights and Q&A for the community regarding financial topics. You can find recordings and notes for these events at the Employee Town Hall minisite. 

Recent Budget Update Memos

• January 13, 2025: Appreciating and Supporting Our Staff in 2025
• December 5, 2024: FY Budget Update
• June 12, 2024: FY25 Budget Adoption

DU Policies & Financial Transparency

Key Concepts

• Budget responsibility, models, and process at DU

  The University of Denver’s Chief Financial Officer (CFO) is responsible for developing the all-fund-type operating budget for presentation to the Chancellor, who ultimately presents to the Board of Trustees for approval. The CFO works very closely with the Provost and Executive Vice Chancellor, who oversees the development of the operating budget for academic and academic support divisions, along with several auxiliary divisions that report to the Provost.

  Each financial division on campus builds a detailed operating budget and three forecasts throughout the year using DU’s budgeting platform. Through a cooperative process, operating margin targets are established for each financial division during the budgeting timeline. The Financial Planning & Analysis team summarizes, synthesizes, and analyzes the projections to provide university-level, multi-year, estimates. 

• DU’s Endowment

  DU’s endowment is a fund in which the principal amount (made up of donations, other contributions, and appreciation) is invested, and a portion of the total investment return in a year is used to support scholarships, operations, or specific programs. The goal of an endowment is to provide a stable, long-term source of funding that preserves “purchase power” over time. Investments returns less annual withdrawals for spending should be equal to or greater than the consumer price index (CPI) on average over time. As is common in higher education, most of DU’s endowment is restricted funds and can only be used for those projects and programs designated by the original donor(s). The vast majority of donor-restricted designations are student scholarships.

• Donor-directed funds

  Donor-directed funds refer to funds that are given to DU by a donor, with specific instructions on how the funds are to be used. The donor specifies the purpose or projects they wish to support. These funds are typically managed by DU but must be used according to the donor’s directions, in line with applicable laws and DU’s mission. The funds can either be donor-advised or completely restricted to one program or project.

• Tuition-dependency

  The DU budget is primarily funded by tuition from both undergraduate and graduate students. Most years, the amount of operating expense funded with current-year tuition is more than 70%, with the remainder of income coming from donors, endowment distribution, and auxiliary activities (such as room and board, event tickets, rental fees, technology transfer, and other areas).

• "Sticker Price” and “Net Price”

  DU’s undiscounted undergraduate cost of tuition increased from $53,775 in 2020-2021 to $60,084 for the 2024-2025 academic year. Though higher education cost increases have generally outpaced inflation rates over the past 40 years, DU’s five-year increase of 11.7% is less than US inflation, which saw an increase of 15.8% during the same period.

  For the last several years, 100% of undergraduate students received some form of scholarship. Scholarships take the form of “funded” (paid for by gifts or endowment distribution) or “unfunded” (which are discounts from the gross price of tuition). The planned discount rate for fiscal year 2025 was 46%, making the average net tuition cost $32,445. 

• Public vs. private institutions

  Though named for our city, the University of Denver is a private institution, and does not receive state or local funding from Colorado jurisdictions for operations (unlike, for example, public institutions such as University of Colorado Boulder or the Colorado School of Mines). Though Colorado does not fund public universities at particularly high rates compared to other states, it does provide approximately $1.4 billion to public institutions throughout the state (as of 2023). The University of Denver does not receive any of this state funding.

  A strong benefit of private institutions is a relatively high level of freedom to pursue their missions and build meaningful, targeted student experiences that many public institutions cannot pursue due to political and funding entanglements.

  Source: State Higher Education Executive Officers’ State Higher Education Finance Report 

• Research 1 classification

  In December 2021, DU was designated as a Doctoral—Very High Research Activity University (often called “R1”) by the Carnegie Classification of Institutions of Higher Education. This designation does not provide additional funding or benefits for DU and is not considered a ranking. It simply denotes that DU has met a set of criteria—primarily measuring number of doctoral graduates and research grant expenditures, which surpassed $43M in 2021.

FAQs

• Will DU offer early retirement (tenure relinquishment) incentives to faculty in 2025 as they did in 2024?

  Through our work with Operational Excellence, a part of DU Forward, all options are being explored. However, with the timing of the 2024 voluntary tenure relinquishment incentive program, it is unlikely.

• Will leadership take pay cuts? How will they communicate pay cuts within the Chancellor's Office? How does DU provide transparent information about executive salaries?

  The University of Denver is committed to maintaining and growing competitiveness as a key strategy for success. This includes prioritizing competitive compensation at all levels to attract and retain the best talent. The University does not plan to reduce the salaries of any DU employees. Rather, across the University, DU aims to proactively address compensation needs at all levels, particularly given Colorado’s cost of living. DU’s approach involves setting aside needed funds to build a merit pool for the 2025-2026 fiscal year, with a clear commitment to enhancing compensation to stay competitive with peer institutions statewide.

  Regarding compensation data, as a non-profit, DU files annual IRS forms 990 that include executive leadership and board compensation details. This information is publicly available and can be viewed above. Consistent with Colorado's Equal Pay for Equal Work Act the University of Denver posts relevant salary ranges for every position at all levels that we are working to fill. Consistent with Colorado's Equal Pay for Equal Work Act the University of Denver posts relevant salary ranges for every position at all levels that we are working to fill. 

• Are there any plans to analyze the current structure of upper administration roles within the chancellor's cabinet?

  In the last several years, leadership has taken a careful look at the structure of upper administration roles within the chancellor’s cabinet.

  For comparison, in 2016, there were 15 cabinet members. Today, 16 members serve on the chancellor’s cabinet, all of whom have essential roles that govern all of the University’s programs and departments. Throughout this time, however, to meet the evolving needs of the University, there have been a number of role adjustments and title changes for cabinet members.

  The University is currently piloting combining three roles into one; Stu Halsall is serving as Interim VC for SAIE and AVC for KMC, and we added recreation under the KMC position in 2022. We also combined the Office of Enterprise Risk Management with Internal Audit to reduce one senior leadership role.

  We plan to further explore additional administrative consolidation/effectiveness through the upcoming operational excellence work.

  Here is the current list of Cabinet positions: 

  1. Chancellor
  2. Provost
  3. SVC for Advancement
  4. SVC for Business & Financial Affairs
  5. VC for DEI
  6. VC for Enrollment
  7. AVC for Government Relations & Community Affairs (this position is an AVC and reports to the SVC for University Relations; however, due to the nature of the work it is helpful for this role also to attend Cabinet meetings)
  8. VC for HRIC
  9. VC for IT
  10. AVC for Kennedy Mountain Campus (this salary is fully funded by philanthropy)
  11. SVC for Operations & Strategy Implementation (COO)
  12. Chief of Staff
  13. VC for Student Affairs
  14. Senior Vice Provost for University Budget, Planning & Administration (this role has existed in the Provost’s office since before 2016; however, this role was changed to Vice Provost in 2019 and Senior Vice Provost in 2022, when the role began attending cabinet meetings.)
  15. SVC for University Counsel
  16. SVC for University Relations (new integration of Marketing & Communications, and Government Relations & Community Affairs)
• Will policies be adjusted to address budget concerns?

  We regularly update university policies to help facilitate the alignment of business operations with best practices and policies, and we will update our policies as part of our ongoing financial management. Additionally, our OpEx program will have a policy-focused working group that will take a look at ideas submitted.

  The new budget model being developed for FY26 at the University of Denver is designed to provide unit and business leaders with greater autonomy and authority in managing their units or schools – while also allowing the University to remain nimble to the changing tides of higher education. This approach empowers leaders to reduce costs and explore creative ways to drive revenue while staying true to what makes the University of Denver great. Our goal is to foster more collaboration and shared responsibility across leadership.

  If you have specific questions about current spending policies, please speak with your manager or supervisor. Managers and supervisors, please use your business officer as a trusted resource in financial matters.

• How will reductions impact specific initiatives and projects such as the Kennedy Mountain Campus or the 4D Experience?

  The Kennedy Mountain Campus (KMC) and the Four-Dimensional Experience (4D) play essential roles in enhancing the student experience at the University of Denver. KMC’s budget, including salaries for staff, is 100% donor-funded. It is also supported by the revenue generated from outside entities making good use of KMC during the times when students are not using the campus. Programs such as First Ascent, which brings every first-year student to KMC for an immersive experience, have had a transformative impact on student bonding and personal growth. Surveys show that over 90% of participating students report positive outcomes of attending First Ascent, including new friendships and a strong sense of community—high-impact factors shown to support retention. In addition, KMC is an asset that we're still learning how to leverage. As KMC’s use expands, more students, faculty and staff will increasingly benefit from this resource, particularly during the winter and spring terms.

  Alongside other offices in Student Affairs & Inclusive Excellence, 4D has also undergone multiple budget cuts during FY2025. The 4D Experience, a strategic initiative aimed at delivering a holistic education, is a key to DU’s retention and recruitment efforts as well as central to DU’s values. It includes signature programs like mentorship, study abroad, undergraduate research, internships, and First Ascent. This past year, more than 6,200 students participated in 4D Signature Experiences, and the program is increasingly becoming a key factor influencing students’ decision to attend DU, according to recent data collected by Undergraduate Admissions. The addition of peer mentors to the 4D structure enhances student support, providing guidance from those who understand the campus experience, which helps make the university more accessible and equitable for all students—particularly for first-generation students and those with cultural or language barriers.

  Though some budget adjustments have affected these programs, they remain strategic differentiators that are critical to DU’s mission.

• How do DU Forward and Operational Excellence tie in?

  As we near the end of Impact 2025, DU’s 10-year strategic plan, Chancellor Haefner and university leadership have been leading efforts to develop DU Forward, the University’s strategic roadmap for the years ahead. For several months, university leaders met with shared governance partners and campus constituents to inform DU Forward. The final plan is expected to be formally launched in 2025. Ensuring DU’s Operational Excellence will be a key goal of DU Forward.

  Planning for DU Forward – including an effort to solicit ideas from campus for improving operational excellence – was well underway when it became clear the university needed to make immediate financial adjustments in the current fiscal year primarily due to lower-than-expected enrollments. The immediate need was to prioritize necessary budget adjustments for this fiscal year as we continued to solicit ideas for Operational Excellence measures.

  As highlighted in some of the questions and answers above, working groups are being set up to address several key areas of Operational Excellence based on the more than 550 ideas and suggestions that have already been received from the campus community. Expect to hear much more about DU Forward plan in 2025.

• I’ve heard about plans for new buildings, new academic programs or other big changes. What’s next for DU and where can I find out more?

  Currently, across campus, DU is focused on addressing this year's budget gap through short-term reductions we discussed during the town hall. That said, the institution is being thoughtful and strategic about how to ensure our future—and our ability to provide an exceptional DU education to students—for decades to come. This includes increasing demand, serving society through research, fostering impactful partnerships in Denver and beyond, and more.

  As part of our long-term planning, there are many conversations, ideas and pathways being explored, from those outlined in our The Denver Difference advancement campaign, innovative ways to pursue a valuable degree, new or reimagined academic programs, (particularly in STEM, Health, and the intersections of STEM and Health), and others.  Faculty will, of course, be central to planning and developing these programs.

  Continued town halls will dive deeply into this work and the community can expect working groups, further discussions, and more engagement opportunities throughout academic year 2024-2025 and beyond.

• Are budget issues being passed onto students through tuition increase?

  Keeping costs accessible and minimizing financial burdens on students remain top priorities for the University of Denver. Currently, tuition increases have been kept below the inflation rate and raising tuition has not been identified as a strategy for addressing the budget gap for fiscal year 2025. While tuition has increased modestly, DU's revenue is still going down due to increased non-funded financial aid, discount rates, and increased costs of goods and services.

For a complete list of FAQs from the October 2024 Employee Town Hall, see the Town Hall minisite.