Financial Sustainability: Challenges and Opportunities for Community Campuses in Nepal

Abstract

Community campuses in Nepal play a vital role in providing affordable and accessible higher education, particularly for students from rural and low-income backgrounds. However, the community campuses are increasingly facing notable financial sustainability challenges. This study aimed to assess the financial condition of Myagdi Multiple Campus (MMC) Beni, Nepal and  identify the core causes of financial stress, and propose practical strategies for long-term improvement though SWOT model. A mixed-methods case study approach was used to analyze primary data from 20 key stakeholders and secondary data from financial statements and reports of the past five years. Quantitative analysis revealed that MMC is heavily dependent on student fees, a model that is no longer sustainable due to rising dropout rates and declining enrollment. The current financial aid has proven insufficient to cover the growing operational deficit. The major challenges include a limited revenue base, fluctuating student numbers with high dropout rates, and low stakeholder engagement, all of which negatively impact educational quality and threaten the institution's long-term viability. Despite these constraints, the study identified several opportunities to strengthen financial stability, such as diversifying revenue streams, implementing a student retention program, leveraging alumni support, and forging partnerships with local government and industry. This research may fill up a critical gap in understanding the financial sustainability of Nepalese community campuses and offers policy-relevant recommendations for institutional reform.