This paper gives an overview of the study “Financially Sustainable Universities II: European Universities Diversifying Income Sources” led by the European University Association between 2008 and 2011. It describes how European universities are currently financed, and looks into the sector’s expectations for future evolutions. It also analyses the many different barriers currently preventing universities from pursuing additional income streams and the possible drivers for stimulating income diversification. To address different funding challenges, including often declining public investment, universities need to proactively design their own strategies. Future financial sustainability depends not only on reliable, sufficient public funding, but also on the autonomy and support necessary to successfully explore complementary funding options.