TUESDAY, JANUARY 14, 2014 ALTERNATIVE REVENUE STREAMS For the audio portion, please dial: US/Canada: Conference ID:

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MEET OUR GUESTS Nick Stoneman President, Shattuck-St. Marys School Ray Levi Head of School Emeritus, Heilicher Minneapolis Jewish Day School

Achieving Financial Sustainability through Asset Optimization

Independent School Revenue Tuition Endowment Annual Giving Alternative Revenue Revenue Sources Revenue Sources

Threats to Revenue Sources Student attrition Increased competition Faculty departures Inadequate facilities Drop in giving Falling behind market perception Lack of revenue diversification Weak endowment returns

A Different Approach to Independent School Revenue Preserve the base AND expand revenue sources Asset Optimizing Faculty Engagement Student Retention Enrollment Growth Facility Expansion Endowment Growth Program Enhancement Alternative Revenue Faculty Engagement Student Retention Enrollment Growth Facility Expansion Endowment Growth Program Enhancement Alternative Revenue New Initiatives

What are these Assets? The Building Blocks The Physical Faculty and Staff Brand Recognition External Relationships Geography and Region (+/-) Programs Offered

Essentials for Asset Optimization No silos allowed Leadership team must: Model integrative thinking See change as normal Believe in the power of imagination Must see the dots to connect the dots Head of School must be comfortable not being the expert Board must support innovative thinking

Optimizing through Intertwining Brand External Internal Location Physical Program Increased Enrollment Faculty Retention Increased Giving Facility Growth Program Growth Student Retention Alternative Revenue

Scrabble as a Management Tool Brand External Internal Location Facilities Program External Brand Location Internal Facilities Program NEW OFFERING

Using Assets to Develop Alternative Revenue External Relations Brand Physical Faculty and Staff Alternative Revenue Programs Geography and Region

Alt Rev Distribution Plotting Feasibility $$$$ Low High International Campus Educational Tech Co On-Line Academy ELL Web App Charter School Rentals Golf Course Tournaments Cafe Land Development Bagel Sales ESL On-Line AP Weekends Elder Hostels Wind Farm ESL Institute Camps Film Production EB5 Regional Center Inn/Banquet Facility

Supplemental Sources of Income $1mm of net SSI revenue = $25 mm of Endowment +- Faculty additional compensationWear and tear on Facilities Not as exposed to market trendsNot on Balance Sheet Leverages what you haveRequires teamwork and innovation Program expansionSustainability Faculty professional growthMust earn each year Balance to admissions swings AND can create a recruitment pool Facility growth

Using Assets to Develop Centers of Excellence External Relations Brand Physical Faculty and Staff Centers of Excellence Programs Geography and Region

Center of Excellence A program aspiring to be nationally recognized in the arts, athletics, or academics. Admissions Magnet Sits alongside a Schools core program

Creating a Center of Excellence Six essential elements: Leadership Program design Marketing Merit Aid as seed Facilities Outcomes

Assets at Work – Pre-Conserv CoE Elite Violinist Faculty Member Elite Instructors in Region Parent -Exec Dir of St Paul Chamber Orch Global Ed Program Pre-Conservatory Center of Excellence Concert Hall Facility External Relations Brand Physical Faculty and Staff Geography and Region

Assets at Work – Bio-Science CoE Staff member married to Hospital CEO Medical Alley location Significant # of medical field alumni Innovative Reputation Bio-Science Center of Excellence STEM Center External Relations Brand Physical Faculty and Staff Geography and Region

Assets at Work–Campus Expansion Unique involvement of students, faculty and Board Located in the U.S. Global Alumni and Parent Network Alternative Revenue Reputation Campus Expansion Global Ed Program External Relations Brand Program Faculty and Staff Geography and Region

Assets at Work – Blended Learning School communitys commitment to innovation Technologically advanced Public Schools Foundation Support Experienced in Distance Learning Blended Learning IT Backbone and Bandwidth External Relations Program Physical Faculty and Staff Geography and Region

Blended Learning at Shattuck-St. Marys School

Asset Optimization: Team Effort Head of School Board Advance- ment CFO Acad Dean Athltic Dirctr Admis- sions Faculty and/or Staff Parents Soccer Golf Bio-Science Pre- Conserv Campus Expansion weCreate Blended Learning

Asset Optimization: Asset Usage Summary Facilities Region and Geography Faculty, Staff External Relations BrandProgram Soccer Golf Bio-Science Pre-Conserv Campus Expansion weCreate Blended Learning

Asset Optimization: The Complete Impact Alternative Revenue Student Retention Faculty Retention Facility Growth Program Growth Admission Alumni Cultivation Soccer Golf Pre-Conserv Bio-Science Campus Expansion weCreate Blended Learning HighMediumLow

Asset Optimization: The Impact at SSM Net Revenue ($1,800,000) $425,000 Annual Fund $650,000 $900,000 Enrollment Endowment $8,000,000 $24,500,000 Net Asset Value $13,000,000 $37,000,000

THANK YOU TO OUR GUESTS! Nick Stoneman President, Shattuck-St. Marys School Ray Levi Head of School Emeritus, Heilicher Minneapolis Jewish Day School

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How to Use Data to Construct Your Affordability Strategy Thursday, February 13, 2014, 1 pm EST Miriam Prum Hess, Director, Center for Excellence in Day School Education, BJE-LA Branding Your School for Distinctiveness and Success Thursday, March 20, 2014, 1 pm EST Laura Sheridan Please RSVP for all webinars by ing Charles Cohen at NEXT STEPS: UPCOMING CALLS

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