Cabrini University, a small Roman Catholic liberal arts institution located outside Philadelphia and founded in 1957, faced significant financial and operational challenges that ultimately led to its closure in June 2023. Over the years, Cabrini saw increased acceptance rates, declining yields on offers of admission, and a notable drop in enrollment, all while institutional aid continued to rise, outpacing tuition increases. These pressures, combined with leadership decisions, created an environment where the university struggled to maintain viability. This article delves into Cabrini’s decision-making process, strategic planning, and transition efforts, culminating in a partnership with Villanova University.
Mounting Financial Pressures
Financial instability plagued Cabrini University for several years leading up to its closure. The university’s acceptance rate increased from 72% in 2018 to 79% in 2022, while the yield on offers of admission plunged from 17% to 11% during the same period. Enrollment numbers suffered dramatically, dropping 29.3% from 2,283 students in 2018 to 1,613 in 2022. These declining metrics, coupled with the rise in institutional aid awards that outpaced tuition increases, placed Cabrini under significant financial strain.
Leadership decisions exacerbated these challenges. Non-strategic initiatives aimed at boosting revenues or cutting costs often fell short, highlighting the need for more focused and sustainable strategies. Consistently drawing down the endowment to cover annual losses further undermined the institution’s financial stability. Additionally, deferred maintenance on campus facilities contributed to the long-term decline, creating a cascading effect of financial woes. Ultimately, these cumulative pressures led Cabrini to seek drastic measures as a means of salvaging the institution.
Leadership Decisions and Institutional Challenges
As Cabrini struggled, the leadership team identified several common pitfalls that contributed to the university’s decline. Non-strategic initiatives, intended to boost revenues or cut costs quickly, typically fell short, emphasizing the necessity for more focused and long-term strategies. Moreover, expanding into initiatives beyond Cabrini’s areas of expertise often resulted in wasted resources and prolonged timelines for success, further straining the university’s financial status.
Multiple efforts to grow revenues and reduce costs, including voluntary and involuntary separation programs, hiring external consultants, and introducing new programs, proved ineffective. These initiatives failed to address the deep-rooted issues at hand, allowing the university’s financial situation to continue deteriorating. With persistent operating losses and increasing deferred maintenance, Cabrini faced insurmountable obstacles, prompting the need for more drastic measures and strategic reconsiderations.
Search for Strategic Solutions
In the summer of 2022, Cabrini’s Board of Trustees approved a four-month budget delay to explore potential solutions amid the mounting financial crisis. The senior leadership team worked diligently to identify $10 million in improvements through revenue generation and expense reduction. During this period, they considered two main paths: continuing operations for an additional three years to assess financial viability or seeking a strategic partner.
Despite earnest efforts to recruit new students and launch new programs, Cabrini confronted three significant obstacles by winter 2022. Firstly, recruitment efforts for new first-year students fell short of expectations. Secondly, the new programs introduced were slow to generate the anticipated revenue due to reduced marketing resources. Lastly, discussions regarding potential partnerships yielded few viable results. These negative trends underscored the urgent necessity for a more definitive solution regarding the university’s future.
Partnership with Villanova University
Recognizing the need for a dignified closure that would preserve the institution’s legacy, Cabrini’s leadership ultimately accepted a memorandum of understanding with Villanova University. This agreement facilitated an asset purchase and a structured transition, aligning with Villanova’s mission and leveraging its financial resources. Villanova’s close proximity, mission alignment, and solid financial standing made it a suitable partner for Cabrini’s closure and ensured that the legacy of the university could continue in some capacity.
With Villanova’s support, Cabrini was able to provide a robust final year of operations for its students, faculty, and staff. The partnership ensured a respectful closure by honoring commitments to students, preserving jobs, and integrating Cabrini’s legacy into Villanova’s operations. This transition allowed Cabrini to provide transparency and stability to its community during its final year, culminating in a structured and thoughtful conclusion to its 66 years of educational service.
Final Year Operations and Transition Planning
Cabrini’s final year focused on honoring commitments to students and staff, ensuring that the transition to closure was managed with dignity and care. The university undertook several initiatives to make the final year as smooth as possible for all stakeholders. The campus underwent rebranding and efforts were made to integrate Cabrini’s legacy into the Villanova framework. Proactive planning and transparent communication proved essential in addressing future transitions for students, faculty, and staff.
Efforts included securing placements for interested students at other institutions, providing job-seeking resources for faculty and staff, retention payments, and severance packages for the workforce. By prioritizing transparent communication and proactive planning, the leadership effectively managed the transition, minimizing disruption and preserving the university’s legacy. This carefully orchestrated closure demonstrated a commitment to the well-being of all involved, ensuring that Cabrini’s final chapter was executed with respect and a focus on legacy preservation.
Lessons Learned and Future Implications
Cabrini University, a small Roman Catholic liberal arts college near Philadelphia, was established in 1957. Despite its long history, the institution faced substantial financial and operational difficulties, leading to its closure in June 2023. Over the years, the university saw an increase in acceptance rates, a decline in the yield of accepted students, and a significant drop in overall enrollment. Concurrently, institutional aid continued to rise, outstripping tuition increases, adding to the financial strain. These challenges were further compounded by leadership decisions that struggled to address the institution’s sustainability issues effectively.
This article examines Cabrini’s decision-making process and strategic planning throughout its final years. One of the university’s significant actions towards addressing its challenges included the transition efforts, culminating in a notable partnership with Villanova University. This collaboration was part of Cabrini’s broader efforts to navigate its financial and operational hurdles. Ultimately, despite these efforts, the mounting pressures made it impossible for Cabrini to maintain its viability, leading to its closure. The story of Cabrini University reflects broader trends and challenges faced by small liberal arts colleges across the United States.
