Here's the executive summary of a 2015 study done on the D3 athletic success issue (pg. 114,
https://www.academia.edu/27346598/Factors_for_Success_in_NCAA_Division_III_Athletics):
"The results suggest that a particular profile for success emerged in Division III athletics.
Specifically, two types of institutions appear to maintain the greatest opportunity for athletic success: (a) institutions with large student-body populations, and (b) small highly selective institutions. Thus, of the four typologies (Bass, et. al., 2014), a disproportionate amount of academic elite institutions and large public institutions were successful when compared to liberal arts and mission-driven member institutions. Large public institutions such as those seen in the Wisconsin Intercollegiate Athletic Conference (WIAC) regularly boast student populations over 10,000, and acceptance rates over 75% (UWLAX, 2013; UWOSH, 2011; UWSP, n.d.). Historically, the University of Wisconsin-La Crosse, the University of Wisconsin–Oshkosh, and the University of Wisconsin- Stevens Point combined to win more than 70 national championships. Similar to institutions in the WIAC, member schools of the New England Small Colleges Athletic Conference (NESCAC) such as Williams College, Middlebury College, and Amherst College supported historically successful athletic programs (i.e., more than 75 national championships). However, unlike the WIAC institutions, NESCAC members regularly have student populations below 3,000, and preserve acceptance rates between 10 and 20 percent (Amherst College, n.d.; Middlebury, n.d.; Williams, n.d.). Ultimately, it appears that in order to be athletically successful in Division III athletic competition,
institutions can be large or selective, and there does not appear to be substantial opportunities for institutions that do not fall into one of these profiles. The findings of the current study illuminate the outcomes showcased in the previously presented research by Lawrence and Li (2007) and Lawrence, et al. (2012)."