What alternative revenue sources are helping your school thrive?
That’s what Alex Brosowsky, now in his fourth year as head of school at The Quaker School at Horsham (PA), recently asked several heads of school.
The independent school world is diverse in many ways—size, location, students, and denominations—but as heads of school, we all have the same basic drive: to best serve the students in our care. With that drive comes the need to respond to complicated issues and complex questions—ones that often have no single answer. How each head chooses to tackle these issues is, in many ways, a reflection of the current and ever-evolving independent school landscape.
I read a lot of strategic plans. In doing so recently, I’ve noticed a trend in schools seeking revenue streams above and beyond tuition. Since the Great Recession began in December 2007, family incomes have not kept pace with the rising cost of goods and services. To remain affordable, many schools are trying to keep their tuition increases to a minimum and yet expenses continue to rise. This got me thinking: When a school cannot raise tuition to keep pace with costs, where does revenue growth come from?
I reached out to some fellow heads for their perspectives:
“We noticed a decline in families participating in extended care. So, we created our After School Enrichment (ASE) program. Extracurricular activities from acting to video game design, as well as study hall with a certified teacher, are offered. Each student gets a hearty afternoon snack, and there’s a second carpool dismissal at 4:30 p.m. It’s a win-win, because our staff members have an opportunity to earn a little extra while serving our community in a different capacity—one that speaks to their individual talents and gifts.” —Lauren T. Ray, Head of School, St. James Episcopal Day School (LA)
“Tuition revenue makes up 5 percent of our annual income, so our entire funding strategy is ‘alternative.’ As a pre-K through fifth-grade program in one of the poorest ZIP codes in Pennsylvania, our school charges tuition, using a sliding scale to determine each family’s annual contribution. So where does the other 95 percent of revenue come from? An inclusive network of corporate and foundation partners, events like our annual spring gala and a golf tournament co-hosted by a celebrity with local ties, and investments from a host of mission-aligned individuals, human-service nonprofits, and schools. We impact our community and city in ways that animate our mission and empower all involved.”—Eric Jones, Head of School, Community Partnership School (PA)
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