Live Blogging from CASE SIIS - School finances & today's economy

Questions you need to know the answers to:

• Size of the endowment and how it's preformed in the last two years?
• Investment policy?
• Total operating budget?
• Tuition?
• How tuition increases are announced?
• Size of the last campaign?

4 W's for Trustees

• Wealth
• Wisdom
• Working
• Wiring (netowrking)
  

4 T's for Trustees

• Treasure
• Talent
• Time
• Tenticles

3 G's for Trustees

• Give money
• Get money
  
• or Get off
  

Evolution of schools

Reading lists:

Book to read: John McPhee's the Headmaster

Good to Great by Jim Collins monograph for non-profitsGood to Great by Jim Collins monograph for non-profits

Schools over the years have become more complex in their infrastructure. In the past, a headmaster was the head teacher and wore many hats. Now the headmaster's role is more of a CEO role.

The legends on campus. Visit their classes. Get to know them.

Budgets should be shared with everyone in the office.

Dartmouth's Wacky Business Model:


Boards of Trustees:

Inappropriate people: not having the the 4W's or the 4T's

In most cases, the boards at day schools are made up of parents whereas boarding schools tend to be made up of alumni.

The 2008-09 Economy

Shit hit the fan.

"Flat is the new up."

Stewardship became the "in" word and planned giving increase as well.

School Budgets and Development Offices

Sources of revenue:

• Tuition
• Endowment (typical draw is less than 5%. Exeter has $1Billion)
  
• Annual Fund
  
• Misc. (schools are thinking about how to increase this area)
  

Budgets were more or less affected in similar ways that colleges were affected.

Underwater fund: an endowment fund that goes below what the donor gave to the fund.

Under pressure: Everyone is under pressure.

What's to come?
Flat budgets.
More evaluations and more accountability?

$0.20 per dollar raised