- The tuition a family pays does not cover the full cost of educating an individual student (hence the gap to which I refer above). To repeat, no family that pays tuition is paying a price that covers the actual cost of the child for whom they pay tuition.
- There are a couple primary resources that provide the funding that fills the gap: Endowment draw and Annual Fund.
- There are other resources that fund a smaller portion of the gap between Net Tuition Revenue and the actual needs of the Operating Budget of the school. These resources include things such as: Auctions, and individual fundraisers for specific purposes (i.e., baseball parents raising funds for a Spring Break trip).
- Tuition does not cover the capitol needs of the school. Tuition Revenue does not build buildings–it covers the yearly cost of educating young people. Capital gifts build buildings and facilities.
- Capital gifts, the gifts that increase an endowment, and payment of tuition are separate types of funding. They are each essential to the overall funding of an independent school.
- Gifts to an Annual Fund send a message more significant than the total fund alone. Percentage of giving sends a message to potential Capital and Endowment donors. Foundations that are likely to consider giving to an independent school look to percentage of Annual Fund participation as a barometer of school community engagement.
- Percentage of alumni donors, parent donors, past parent donors, grandparent donors, and faculty donors each send discrete messages to the philanthropic sources independent schools court for Capital and Endowment gifts. Each dollar and each donation given to an independent school’s Annual Fund has a value significantly greater than the number on its face.
- Giving to an Annual Fund at whatever scale is a vital way to demonstrate affiliation with the school. I believe it is an obligation as it clearly facilitates the school’s effort to provide the best possible education to its students.
One of the first questions I ask whenever I have taken a close look at an independent school is, “what percentage of the faculty gives to the Annual Fund?” As barometers of school health go, this is an unusually accurate one. When the people who know the most about a school, the ones who know best how the sausage is made, give to the Annual Fund, it is a strong indicator of school health.So, when the institutions that serve your kids, or that you attended, call between now and June 30th, say, “yes.” Take action. These invaluable places and their current student bodies need you.
For me, this giving is both sacred obligation, as well as expression of appreciation for the ongoing work of these rare places – Very nice wordsmithing
Thanks so much for reading and responding.