Newswise — A common stereotype of independent schools-private, non-parochial, K-12schools-- is that they are extraordinarily wealthy. Indeed, many schools' tuition bills would seem to confirm this. But on average, tuition covers only 50-85 percent of the cost to educate each child at an independent school.
To make up the cost differential, and often to fund new programs or financial aid, many independent schools are looking for creative ways to bring in new revenue.
"Independent schools develop alternative revenue streams for several reasons," says Patrick Bassett, president of the National Association of Independent Schools. "Many use the earned revenue to offer high-quality programs without significantly raising tuition. Others earmark it for scholarships, or to increase faculty salaries, or to increase the number of teachers. Still others put the funds toward equipment purchases or facilities upgrades."
At San Francisco University High School, for example, they raise funds for the school's student financial aid program by holding the annual San Francisco Decorator Showcase. The 28-year-old event displays the talent of more than 1,000 interior designers and landscape architects. This year the showcase raised $525,000.
"It is truly a display of the best local design talent," says Elizabeth Leep, director of the annual fund and decorator showcase. "The money raised enables talented students who could not otherwise attend the school to experience a UHS education and enrich our community."
Head-Royce School in Oakland, CA owns residential property that it rents to faculty. Head-Royce also rents facilities to sports leagues and has a revenue-generating summer program. The school last year earned net revenue of $221,593 from ancillary income. "The board is committed to maintaining the same endowment per student ratio that we currently have," says ShoshanaZiblatt, director of annual giving at Head-Royce. These funds help to keepHead-Royce's tuition at 84-to-85 percent of operating expenses for its 750 students.
Lake Forest Academy in Lake Forest, IL, considers its buildings and grounds part of its endowment. By using these assets, the academy adds revenue and attracts future applicants and income.
Among the 20 buildings on the academy's 140-acre wooded campus, is a first-class hockey rink. Through rink rental, Lake Forest substantially boosts revenue. In fact, the rink is so popular that it appears as a separate line item in the budget. Even during slow years, summer hockey camps typically add $100,000 to the academy's bottom line.
"We use rental activities to reflect and even enhance the education mission of our school," says Jon Cushman, business manager for Lake Forest. "We work hard to use these rental activities to help us meet strategic goals, not just revenue goals."
Lake Forest also hosts a local swim club, the Midwest Young Artists summer music camp, soccer coach clinics, weddings, and other events. Cushman said that although some of these efforts result in little or no income initially, they consider them investments in the academy's future.
"We see them as opportunities to widen our exposure as a school and to attract high-quality applicants to Lake Forest Academy's diverse community," Cushman says.
Some independent schools have been exploring alternative revenue streams for a long time. The Town School in San Francisco has supplemented revenues for more than 50 years with a parent-run business. Beginning as little more than a swap meet, the school opened a second-hand clothing shop called Clothes Closet. Today, the shop grosses $300,000 a year, has a three-person paid staff, and contributes nearly $200,000 to the school annually. .
To the Town School community, the store is more than a source of revenue, it also is "something that everybody can rally around," says Town School parent Courtney Rice.
Here are other examples of unconventional ways that independent schools raise money:
* Calvert School in Baltimore, MD, has developed a curriculum forhome-schooled children that nets the school $1.5 million annually.
* San Francisco Day School sixth-graders developed a trivia game,"Kids Battle The Grown Ups," that has thus far netted $70,000 in royalties for the school. A second game, "Kids Rule," is now on the shelves at Wal-Mart and Toys-R-Us.
* Georgetown Preparatory School in Bethesda, MD, leased three acres ofschool property to a developer for luxury apartments, earning $1.3 million per year for the school on a 99-year lease.
* Elmwood Franklin School in Buffalo, NY, projects income of $100,000per year from offering tutoring services to the local community.
* Shattuck-St. Mary's School in Fairbault, MN, built a golf coursecommunity on some of its property and sold lots, netting $2 million in the first year. The school also rents its ropes course for corporate outings.
"Fiscal health is an important component of our 'sustainable schools' initiative," says NAIS President Bassett. "NAIS is encouraging all of its member schools to become more efficient and less costly so that a greater number of families can attend.
"High-quality education is not inexpensive, but these schools and others like them have developed innovative strategies to offset costs while enhancing existing programs and adding new programs to facilitate learning. By becoming less tuition-dependent, they are leading the charge toward financial sustainability." Independent schools are private, nonprofit schools that are guided by mission statements and governed by independent boards of trustees. Approximately 1,300 independent schools belong to the National Association of Independent Schools, educating more than half a million of the nation's children each year..
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