Prudent Financial Resources Management
Besides the human capital, another key resource for ensuring a sustained research center is its financial resources that need to be managed strategically, including diversity of funding sources, ability to cover fixed costs and availability of discretionary funds.
a) Broad funding sources. A Center should not depend on any single program area or individual funding source. A portfolio of funds minimizes risk and enables a Center to survive loss of any single funding source.
b) Cover fixed costs. The Center should be able to generate sufficient revenues to cover its fixed costs, largely internal staff and critical operating expenses.
c) Availability of discretionary funds. If the Center has discretionary resources, it can invest in new initiatives (seed grant projects) to keep current programs contemporary or develop new programs. Discretionary resources may be derived from university allocations, from "surpluses" generated by on-going programs, or from other internal or external sources.