Beyond Development : Funding Catholic Schools For the Future

4 “Can do’s” of Funding  Cut expenses  Increase enrollment  Increase tuition  Increase 3 rd source income  Diocesan/parish investment (the “S” word)  Fund raising  Development  Other sources

School Funding Variations on the Theme  Traditional: tuition/fund raising/investment-subsidy  Cost-based tuition/Need-based assistance  Family income cap  Tiered/sliding scale  negotiated/fair share  Development (Nativity)  Corporate (Cristo Rey)  Government (tax credits/vouchers)  Stewardship (the “non-funding” model)

Business as Usual!  Stereotype of Catholic school business management:  Set tuition at what we think is affordable  Enroll as many as possible  Provide financial assistance first to those most in need  Subsidize everyone  Frequent fund raisers & special events  Request donations from all

“Never, ever, think outside the box.”

Intentional School Funding WHERE ARE WE NOW? WHERE DO WE WANT/NEED TO BE IN FIVE YEARS?

“I think you should be more explicit here in Step Two.”

INTENTIONAL FUNDING  Tuition  Enrollment  Financial Assistance  Development  Fund raising  Quality  Value With a twist!

TUITION  Myths  Lower tuition = higher parent satisfaction  Increase tuition = lose enrollment  Hold or reduce tuition = sustain or gain enrollment  High level of parent sacrifice = lower level of parent satisfaction  Free tuition increases enrollment

Value Proposition Parent Cost >=< Value VALUE = Perceived Benefit/Outcomes Perceived Price/Cost

TUITION  Determine your “worth”; leverage your “value proposition”  “Value-leader” is more strategic than a cost/price leader  Understand relationships: customer service, educational quality, effective marketing, strategic planning to cost  Value statements specifically for families  Comprehensive strategic plan to support value and VALIDATE the cost  Use metrics to audit impact

ENROLLMENT  The best development plan is capacity enrollment – effective enrollment management  “Right sized” instead of getting all we can  Increasing enrollment without increasing staff  Wait lists – school and individual class parameters  ES - Minimum/maximum numbers per class/grade  HS - Efficient number of students – current faculty & sections

FINANCIAL ASSISTANCE  Protect low income families – provide for middle income families  Plan for funded and unfunded assistance  Intentional/strategic awarding of assistance  Awards to support/grow desired student profile(s)  Divide the pot to help low and middle income families  Divide among a greater number of families  Use metrics to audit assistance trends

FUND RAISING  Short-term funding approach  Distinguish fund raising from friend raising  Intentional plan for number of events/activities per year  Control funding targets (vendors, parents, donors)  Assess effort and investment required for acceptable return  Adopt sunset provisions for activities/events

DEVELOPMENT  Compelling mission, vision and leadership  Relationship building versus short term funding  Interest in people, not just their money  Targeted requests for donations  Longer term investment focus - engagement  Use metrics to assess the success of efforts

StereotypeIntentionality  Affordable tuition  Enroll everyone  Tuition aid for poor only  Frequent fund raisers  Request donations from everyone   Value-based tuition   Controlled enrollments   Strategic tuition aid   Limited events with higher goals   Targeted development

Managing an Intentional Funding Approach  Comprehensive strategic plan  Clear vision; mission-based  Situation analysis  Enrollment analysis, projection, management plan  Financial analysis, projection  Visionary leadership  Adjusting to a “new normal”

“Miss Peterson, may I go home? I can’t assimilate any more data today”

client access: ncea2013