Goal (sort of) is tuition covers around 2/3 of operational expenses. Chart shows we're improving, but have declined.
Full Enrollment = 65 -- we keep running around 55 -- we need to get to 65 to fit these projections -- or any imagined surplus remains imaginary.
If we're able to keep operational expenses to the projections over the next 5 years, then the percent of net tuition increases approximately to the goal of 2/3 of expenses. Otherwise, we're relying too much on donors. And then if donors stop contributing, we're out of business.. [NOTE: Remember, these projections assume constant full enrollment, so they're optimistic -- If we don't reach full enrollment and stay there, we need even more from other sources]
Budget projections -- assumes annual 5% increase in funds from the foundation -- Requires growing endowment by $1M over the next 3 years.
Page 3 shows what percent of scholarship has been unfunded...(1 - % of gross) = % unfunded
"allowance" - what we forgive (currently 44%). "scholarship funds" is what we get from the foundation "% of allowance unfunded" is what is pure vapor.
Acceptance of students is "financially blind" -- after acceptance, parents fill out form concerning finances & we figure what they can afford by type of enrollment (full board, 5-day, etc).
These days, parents are paying 56% of announced tuition.
Last page shows recommended tuitions, assuming we stay at 44% allowance. Does not include efforts to increase staff salaries significantly -- it's somewhat smaller than we tried to do before -- if we want to do better, ...
This shows what we need to do to the foundation to get the scholarship money to cover the unfunded allowance... For instance, we need to get to $10M in the endowment to cover gap at 5% of endowment available. Other schools have $50M endowments, so it's more a matter of how do we get there... There was some discussion of increasing the contribution from IaYM for scholarships, vs increasing donations to the foundation.
Jan doesn't see a lot of change to the allowance, unless we make philosophical changes.
Measy Foundation -- contributions from Haverford foundation toward quaker highschools (from an earmarked contribution) ... We give them a list of recipients of the funds.
Thank you Jan!
Then where the money came from... Parents, trustees, & staff most
dollars, but alumni are most gifts... Alums are responding!
(an individual gift may show up in more than one column)
AF == Annual Fund (non-designated / general == operational) excludes
capital, endowment, scholarship, etc..
Then dollars by classification -- 92% from top 5% of donors! 90/10 rule (or 95/5 rule)...
Review of Chapt's 2 & 5 in Governance for Qkr Schools Fiduciary: in fulfilling the responsibility to promote the mission, it is crucial that a board embrace the Quaker aspect of the mission as a guidepost for all major decisions.
Ensure the long term financial success and stability of the institution.
Board members have a clear comprehensive grasp of the sources of income, budgets, and financial history...
Ensure frequent and accurate reporting of financial status of the school
Become more like a "think tank' doing strategic thinking, even more than strategic planning -- focus on idea generation, and sorting, creating a legacy, image, and the like.
How to address budget & financial issues? Is our current schedule meeting the needs of the board?
p9 -- considerations in setting tuition, financial aid & salary budgets? 3-legged stool
think about school as a luxury rather than as a commodity, when thinking about marketing -- a suggestion from an article...
knee jerk reaction to budget balancing can lead to problems -- don't over project the number of students... [ Hmmmm ... projections depend on full enrollment]
Chapter 5 Fundraising & Development
(par. 2) Stewards of schools resources...
buck stops with school committee -- we are responsible for the
success of the school.
Board members are models for contributing personal financial resources. It is important to have 100% participation...
Can't ask others to give, if I haven't given myself...
Makes sense to have done what you're approaching others to do. Set up a giving annuity yourself, for instance...
Board is responsible for generating revenues through philanthropic means to sustain and strengthen the programs of the school...
Ask yourself -- what is your role as a board member? -- Overview & making sure things are done -- and, ...
Looking at the queries on p.24
On fundraising side, board work needs to be hands-on. In accounting, business management, it should NOT be hands on.
People give money for one of 2 reasons -- change lives or save lives -- how does SFS do those things?
Friendraising is different from Fundraising!
Donors like to know how their money is used.
Jarold Panas suggests that one should thank donors 7 times for each gift...
Is endowment growth prioritized to promote the growth of the school?
Do you have a will? Is SFS in it?
Personal aversion to fundraising -- key points in his outline:
Good things tend to happen when policies are in place to provide a
context for planning and implementation.
Responsibility for the success of the school rests with the school commiteee
The SC should expect timely, accurate reports. Read 'em ,ask quesitons until you understand them -- then take appropriate actions
etc.
Finding ways to become more active in the fund raising responsibilities on the school committee
Others view you as an expert on SFS. This gives you the opportunity to
network.
Tell the success stories -- short half-page formats
Begin to bring key acquaintances into the sphere of influence of
Scattergood
Begin to view fnd raising as a donor driven program.. The dev. office is
there to assist the donor in finding the best way to accomplish his/her
goals and objectives.
Look for people with linkage to SFS, ability to give, and motivation.--
you can work to create the linkage to SFS from your friends and
acquaintences.
Learn to practice creative listening.
God has blessed donors with assets, so how do we help them dispose of
those assets responsibly?
There are a lot of people out there looking for a good place to give --
you can start helping them feel good about finding a place.
It takes 3 years for a dev. dir. to become net positive... homegrown is better longterm...
Greg Miller is local rep of Mennonite Foundation
He left package for us.
Bringing it all together...
Read: The Millionaire Next Door