The Business of Private Christian University Education

It’s complicated.

College enrollment has been steadily declining for over a decade, down 8.5% since 2010, especially among males. However, this decline is not evenly distributed. Many 4-year public colleges have managed to increase their undergraduate enrollment by about 15% from 2010-2021, while enrollment at private for-profit colleges fell 54% over the same period of time. Private non-profit colleges increased enrollment modestly, at about 2.7%. Full-time, first-time undergraduate enrollment market share for Christian institutions grew from 5% in 2011 to 9% in 2021, and the total number of students enrolled in Christian colleges nearly doubled over this same time period.

Notice, however, that these numbers come from datasets that end in 2021. It’s been rough since then.

The pandemic lockdowns, which hit hardest after 2021, had an outsized effect on Christian colleges, however, with over 40% of the institutions that closed or consolidated being Christian.

“The market for students interested in a Christian education… is small,” says Johanna Trovato, principal analyst at Encoura.

 “Many Christian universities,” explains Matthew Smith from The Gospel Coalition, “have become overpriced, ineffective, and increasingly secular… Private Christian universities are bleeding students and losing money. Some colleges have closed permanently.”

CNN recently did a story reporting that “Small private colleges are struggling to keep their doors open as declining enrollment leads to financial instability.” Their first example? A small, Christian, liberal arts college in Pennsylvania that will close its doors for good this summer.

So who are the winners and losers in this constantly shifting environment, marred by a generalized decline of interest in going to college, a generalized decline in faith, an ongoing ideological war between students, faculty, and donors, and sharply rising tuition rates? And what can we learn from those who have managed to thrive?…

Streaming services now account for 18% of total advertising spending in the U.S. as traditional TV continues to lose traction and relevance with both viewers and advertisers. Streaming alone doesn’t make up for the loss of what was once a monolith of viewers watching cable TV. Companies “have to build reach across multiple platforms,” according to one expert cited by the Wall Street Journal. Nearly $1 trillion has been spent on social media advertising since 2017, and the category is expected to reach $255 billion/year in just the next few years…

The Dow Jones rallied with over a week of consecutive gains, and the S&P 500 is close to an all-time high. There is a lot of movement in the markets anticipating Wednesday’s CPI report. Among consumers, inflation outlook is rising, driven mostly by expected increases in housing costs. 30-year fixed interest rates were down slightly last week to about 7.5%. J.P. Morgan, Citi, U.S. Bank, and others have begun testing a blockchain-inspired system called “the regulated settlement network” that could legitimize cryptocurrency if the dollar shows instability…

According to a shocking, comprehensive report by the Wall Street Journal, the world is now reproducing at below replacement rate. In the U.S., there was a very small bump in birth rates in the wake of the pandemic, but 2023 saw the lowest rate on record: 1.62. The World Bank has already warned that the 2020s are likely to be a “lost decade” in terms of economic growth, and the demographic decline isn’t helping any. Efforts have been made in various regions around the globe to reverse the falling birth rates, but “no country has really got it right,” says some experts, and policy efforts do not seem to be producing significant fruit in Japan, Hungary, etc…

Your weekly chance to test your Bible knowledge! The answer to today’s question may surprise you:

Q: What is the Greek word used in the New Testament for “save”?

Answer at the bottom

TIPS & TRICKS

The Tax Code is Going to Change – Tips on How to Stay Ahead of the Curve

Big changes are coming.

The Trump administration’s Tax Cuts and Jobs Act of 2017 is sunsetting in 2025, and we don’t yet fully know what (if anything) will replace it. What we do know, however, is that tax liability for medium-sized businesses and especially for small-businesses is very likely to sharply increase.

“With the [government’s] growing debt, you can expect our discounted tax rates to increase. Most of my clients have seen an increase of 2.2-2.8% in the last year, and after these provisions lapse, you’re going to see a 5-8% liability increase for small businesses,” says W. Jack Sells, an enrolled agent who represents small businesses before the IRS.

“It’s logical to see that the debt ceiling is rising, the government needs to pay for the wars [in Ukraine and the Middle East], the crumbling infrastructure needs to be addressed… There is a need for cash in our government, so you’ve got to be focused on tax as the taxes are rising.”

It’s hard to argue with his logic. The New York Times, in a recent report, agrees, stating:…

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