Indeed, activities which appear to be generating significant marginal income to the university may actually be heavily subsidized. Another possible revenue source is increased funding from the private sector, both individuals and businesses, and both as gifts and for research. Public universities have become very active in private fundraising in recent years, and as their constituencies become better educated to the needs, many public universities might over time become as successful as their private counterparts in this area. Research funding from industry has the potential for growth, but does not directly fund instructional programs. It should be remembered that under the current federal indirect cost system accepting a reduced rate on industry funding not only reduces the institution's total indirect cost income, but also provides the federal government with an argument for a lower rate.
Universities often manage cash flow and positive account balances in a very conservative manner.
Some universities, even ones which would reasonably claim to be very poorly funded, carry substantial balances in accounts which receive little or no interest. Additional revenue may be found both from better investment of cash balances, and from managing cash flow so that short-term deficits are covered by positive balances from other accounts.