Revenue Sharing
Programs selected for the incubator receive the unique benefit of a revenue sharing agreement between the Provost and Schools/Colleges/departments. Revenue sharing:
- Provides financial incentives to Schools/College(s)/Department(s) to encourage the growth of revenue-generating programs.
- Allows Schools/College(s)/Department(s) to fund initiatives aligned with the university’s strategic plan and in accordance with Schools/College(s)/Department(s) and university budgets.
- Ensures that resources are available from the program revenues rather than the subsequent year budget.
After the seed loan is recouped by the Provost’s Incubator Fund, the program’s operating surplus (revenue minus operating expenses) will be shared as follows:
- 30% allocated to the School/College/Institute hosting the program. If multiple Schools/Colleges are participating, this 30% will be divided proportional to the number of program-required credits taught in the curriculum.
- 15% will be reinvested in the strategic investment fund to maintain the fund and pay for any losses from programs that do not meet their predicted financial goals and are unable to repay the initial investment.
- 55% allocated to the University central fund for general operations.
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At the time of application, the School/College hosting the program must specify how they will allocate the 30% share between the academic unit (e.g., department) and/or the College/School that houses that academic unit. By June 15th each year, the home School/College Dean will be responsible for reporting to the incubator coordinator how revenue share funds have been spent in the prior year. Every five years, or when necessitated by significant shifts in the University’s financial situation, the revenue sharing agreement will be reassessed, and potentially adjusted in negotiation with the School/College hosting the program.
Programs selected for the incubator receive the unique benefit of a revenue sharing agreement between the Provost and Schools/Colleges/departments. Revenue sharing:
- Provides financial incentives to Schools/College(s)/Department(s) to encourage the growth of revenue-generating programs.
- Allows Schools/College(s)/Department(s) to fund initiatives aligned with the university’s strategic plan and in accordance with Schools/College(s)/Department(s) and university budgets.
- Ensures that resources are available from the program revenues rather than the subsequent year budget.
After the seed loan is recouped by the Provost’s Incubator Fund, the program’s operating surplus (revenue minus operating expenses) will be shared as follows:
- 30% allocated to the School/College/Institute hosting the program. If multiple Schools/Colleges are participating, this 30% will be divided proportional to the number of program-required credits taught in the curriculum.
- 15% will be reinvested in the strategic investment fund to maintain the fund and pay for any losses from programs that do not meet their predicted financial goals and are unable to repay the initial investment.
- 55% allocated to the University central fund for general operations.
(Image)
At the time of application, the School/College hosting the program must specify how they will allocate the 30% share between the academic unit (e.g., department) and/or the College/School that houses that academic unit. By June 15th each year, the home School/College Dean will be responsible for reporting to the incubator coordinator how revenue share funds have been spent in the prior year. Every five years, or when necessitated by significant shifts in the University’s financial situation, the revenue sharing agreement will be reassessed, and potentially adjusted in negotiation with the School/College hosting the program.