AMDP Investment Proposal (Final Draft)

To:            Clark Hansen, CEO, Anima Mundi Development Partners
From:        So Jung An, Research & Development
Subject:    Investment Opportunity: Western Interstate Commission for Higher Education (WICHE)
Date:         October 18, 2024

As a member of the Research and Development Department at Anima Mundi Development Partners (AMDP), my role is to identify and evaluate potential investment or funding opportunities that align with our values. AMDP is dedicated to conducting business in a socially responsible, environmentally sustainable, and profitable manner to address society’s most pressing needs. After conducting thorough research, I highly recommend the Western Interstate Commission for Higher Education (WICHE), a nonprofit organization, for its strong commitment to expanding access to higher education across the Western United States, which aligns with our mission of fostering positive societal impact.

 

AMDP Standards

Triple Bottom Line

The Triple Bottom Line consists of the three P’s (Kenton):

• People: A business’s social impact on all stakeholders (employees, customers, communities, and other stakeholders) with fair labor practices, community engagement, diversity, and improving quality of life.
• Planet: An organization’s environmental footprint on how it manages resources, reduces waste, minimizes pollution, and contributes to sustainability efforts.
• Profit: Income should be earned in ethical, fair manners, including working with partners and vendors that align philanthropically.

Corporate Social Responsibility 

Corporate Social Responsibility (CSR) is a business’s commitment to operating in an ethically, socially, and environmentally responsible way to contribute positively to its stakeholders and society. This may include ethical business practices, environmental sustainability, philanthropy, and employee well-being (Fernando).

Social Enterprise 

Social Enterprise is a mission-driven business that generates income to use its profits and business practices to address a societal need (The Annie E. Casey Foundation).

Carbon Footprint  

Carbon Footprint refers to the total amount of greenhouse gasses, such as carbon dioxide, that are emitted directly or indirectly by people or organizations. These emissions contribute to climate change by trapping heat in the Earth’s atmosphere. It is calculated using carbon dioxide equivalents by measuring the amount of carbon dioxide (CO2) and methane (CH4) that an organization emits when producing goods or services. We should care about reducing carbon footprints because they directly contribute to climate change, leading to severe environmental, economic, and social consequences (Selin). 

 

Overview of WICHE

Established in 1953, the Western Interstate Commission for Higher Education (WICHE) was created in response to the growing need for higher education in the western United States. During the post-World War II era, many states in the region were facing challenges of limited access to higher education, especially in rural areas. WICHE aims to ensure that residents of the West have access to higher education opportunities to empower individuals (WICHE).

Mission 

WICHE’s mission is “to work collaboratively to expand educational access and excellence for all residents of the West by promoting innovation, cooperation, resource sharing, and sound public policy” (WICHE).

Regional Impact 

The WICHE region includes Alaska, Arizona, California, Colorado, Hawai’i, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and the U.S. Pacific Territories and Freely Associated States. The organization has 48 commissioners appointed by the governors of the Western States, the U.S. Pacific Territories, and Free Associated States (WICHE).

Strategic Priorities  

• Affordability & Finance (A/F): Aligning funding, tuition, and financial aid policies to make higher education more accessible.
• Access & Success (A/S): Enhancing access and success in higher education, especially for underserved students, through evidence-based strategies.
• Workforce & Society (W/S): Partnering across sectors, including health, business, and industry, to meet the region's workforce needs and help communities thrive.
• Innovation (I): Promoting advancements in teaching, student services, and technology to help students succeed in higher education and get a good return on investment.
• Value & Accountability (V/A): Gathering and analyzing data on post-graduation outcomes to assess the impact of WICHE’s efforts and improve how students, institutions, and partners invest in education and workforce development.

Student Access Programs

WICHE offers a variety of programs and services that address key needs across education, policy, and behavioral health. For AMDP, WICHE’s three Student Access Programs are particularly important as they enhance educational access for underserved students. During the 2023-2024 academic year, WICHE helped students save $613 million through the Student Access Programs (WICHE).

• Western Undergraduate Exchange (WUE): Helps undergraduate students save on out-of-state tuition by charging no more than 150% of in-state rates at participating institutions across the West.
• 47,248 students saved $559.1 million, with an average savings of $11,800 per student.
• Western Regional Graduate Program (WRGP): Helps graduate students save on out-of-state tuition in certificate, master’s, and doctoral programs, limiting costs to no more than 150% of in-state tuition at partner institutions throughout the West.
• 2,877 students saved $39.2 million, with an average savings of $13,600 per student.
• Professional Student Exchange Program (PSEP): Helps students pursue careers in 10 healthcare fields by offering significant tuition assistance through their home state/territory.
• 557 students saved $14.5 million, with an average savings of $26,000 per student. 

 

Financials

During the 2023 fiscal year, WICHE had an annual operating budget of $19.5 million – with an operating revenue of $19.5 million and operating expenses of $18.7 million. The operating revenue consists of grants and contracts, dues and operations, behavioral health members, and registration fees, and other income – with grants and contracts accounting for $13.8 million, or 71% of the total. The operating expenses include educational technologies, behavioral mental health, communications and public affairs, programs and services, policy analysis and research, student exchange, and self-supporting services.

In comparison, during the 2022 fiscal year, the annual operating budget was $19.1 million – with an operating revenue of $19.1 million and operating expenses of $16.7 million. The operating budget grew 2% from 2022 to 2023 – with the operating revenue growing at 2% and the operating expense growing at 11%.

Areas for Growth

WICHE faces several challenges that offer growth opportunities. They must adapt to different education policies and needs of the member states while working to ensure all students, especially from underserved groups, have affordable access to higher education. WICHE is also working to strengthen workforce readiness by aligning higher education with labor market demands. Another growth area involves supporting new educational models, such as dual enrollment programs, which can offer high school students college credits. However, these programs must be carefully evaluated to ensure they do not exacerbate educational inequities (WICHE).

Recommendation

With the growing need for accessibility and affordability in higher education, I recommend AMDP to invest in the Western Interstate Commission for Higher Education. The Student Access Programs allow students to save millions in tuition fees while addressing workforce shortages in critical sectors, such as healthcare, by encouraging students from rural areas to pursue professional degrees. By supporting students from underserved areas, WICHE not only promotes educational equity but also contributes to long-term social and economic benefits. With AMDP’s investment, you can help drive efforts to address these inequities, aligning with our mission to support responsible and sustainable projects that tackle society's most pressing challenges.