break it in order to fix it:
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Break It in Order to Fix It:. Creating New Financial Models for Catholic Schools. NCEA CONVENTION. New Orleans, LA April 26, 2011. Presented by: Bernard DuMond, Vice-President, Institute of School & Parish Development. - PowerPoint PPT PresentationTRANSCRIPT
Break It in Order to Fix Break It in Order to Fix It:It:
Presented by: Bernard DuMond,
Vice-President, Institute of School & Parish Development
New Orleans, LA April 26, 2011
Creating New Financial Models for Creating New Financial Models for
Catholic SchoolsCatholic Schools
“Our young people are the Church of today and tomorrow. It is imperative that we provide them with schools ready to address their spiritual, moral, and academic needs.”
Renewing Our Commitment to Catholic Elementary and Secondary Schools in the Third Millennium – United States Conference of Catholic Bishops, July 2005
3
I.I. Opening PrayerOpening Prayer
II.II. Key Points & ConsiderationsKey Points & Considerations
III.III. The State of Catholic SchoolsThe State of Catholic Schools
IV.IV. Key Steps & Financial ModelsKey Steps & Financial Models
V.V. Making It Come AliveMaking It Come Alive
VI.VI. Q & A & Action PlanQ & A & Action Plan
AGENDAAGENDA
KEY POINTSKEY POINTS
4
!The current dependence on The current dependence on
tuition, fund-raising and tuition, fund-raising and
parish subsidy will not parish subsidy will not
sustain Catholic Schools. sustain Catholic Schools.
KEY POINTSKEY POINTS
5
Sustaining the financial Sustaining the financial
viability of our Catholic viability of our Catholic
Schools is the MOST Schools is the MOST
defining issue of our time. defining issue of our time.
!
KEY POINTSKEY POINTS
6
This is about This is about
FAITH FAITH
& &
FINANCES.FINANCES.
!
KEY POINTSKEY POINTS
7
We need a NEW commitment, We need a NEW commitment,
wisdom, patience, a true wisdom, patience, a true
sense of community and sense of community and
clarity of mission.clarity of mission.
!
8
You Have the POWER and theYou Have the POWER and the
OPPORTUNITY to OPPORTUNITY to
TRANSFORM TRANSFORM
OUROUR
Catholic Schools.Catholic Schools.
THE CHALLENGE THE CHALLENGE
9
There are 6,980 Catholic schools: There are 6,980 Catholic schools: 5,774 elementary; 1,206 secondary.5,774 elementary; 1,206 secondary.
34 new schools opened; 172 34 new schools opened; 172 consolidated or closed.consolidated or closed.
1,822 schools have a waiting list for 1,822 schools have a waiting list for admission.admission.
- Source: NCEA - Source: NCEA 2010-112010-11
BY THE NUMBERSBY THE NUMBERS
10
Total Catholic school student Total Catholic school student enrollment for the current academic enrollment for the current academic year is 2,065,872.year is 2,065,872.
1,467,694 elementary/middle 1,467,694 elementary/middle schools; schools; 598,178 secondary schools598,178 secondary schools
Minority student enrollment is Minority student enrollment is 624,878 which 624,878 which is 30.2% of the total enrollment.is 30.2% of the total enrollment.
Non-Catholic enrollment is 307,458 Non-Catholic enrollment is 307,458 which is 14.9% of the total which is 14.9% of the total enrollment. enrollment.
BY THE NUMBERSBY THE NUMBERS
11
43.0% of the schools are still in 43.0% of the schools are still in urban/inner city locales despite urban/inner city locales despite population losses and great population losses and great financial difficulties in financial difficulties in maintaining them. maintaining them.
During that same period of During that same period of time, suburban schools time, suburban schools increased from 25.0% to 35.9% increased from 25.0% to 35.9% of the total.of the total.
BY THE NUMBERSBY THE NUMBERS
12
Between the 2000 and the 2011 Between the 2000 and the 2011 school years, 1,755 schools were school years, 1,755 schools were reported closed or consolidated reported closed or consolidated (21.5%). (21.5%).
The number of students The number of students declined by 587,166 (22.1 %). declined by 587,166 (22.1 %). The most seriously impacted The most seriously impacted have been elementary schools. have been elementary schools.
BY THE NUMBERSBY THE NUMBERS
13
ElementaryElementary Mean parish school Mean parish school tuition: tuition:
$3,383. Per pupil cost: $3,383. Per pupil cost: $5,436.$5,436.
SecondarySecondary Mean freshman Mean freshman tuition: tuition:
$8,787. Per pupil cost: $8,787. Per pupil cost: $10,808.$10,808.
BY THE NUMBERSBY THE NUMBERS
14
We Face More CompetitionWe Face More Competition 96% Lay Teachers96% Lay Teachers Cost of Education Continues to Cost of Education Continues to
RiseRise Academic Needs – Learning Academic Needs – Learning
StylesStyles Demographic ShiftsDemographic Shifts Growth of Technology & Media Growth of Technology & Media The Need for Marketing – 24/7The Need for Marketing – 24/7 Educational OptionsEducational Options The Decline in Enrollment The Decline in Enrollment
A NEW WORLDA NEW WORLD
15
Governance ChangesGovernance Changes The Need for Planning & The Need for Planning &
VisioningVisioning Branding Your Image -- CriticalBranding Your Image -- Critical Enrollment Management Enrollment Management
ProcessProcess More Involvement From AlumniMore Involvement From Alumni Capital Campaigns & Annual Capital Campaigns & Annual
FundFund Innovative CurriculumInnovative Curriculum Expanded Role of FacultyExpanded Role of Faculty Need All ResourcesNeed All Resources
A NEW WORLDA NEW WORLD
16
SeeingSeeing
CHALLENGES CHALLENGES
AsAs
YOUR RESPONSE YOUR RESPONSE
17
STEP ONE:STEP ONE:
Be a School of ExcellenceBe a School of Excellence In All AreasIn All Areas Continuous ImprovementContinuous Improvement Total QualityTotal Quality A Culture of EngagementA Culture of Engagement Seven PillarsSeven Pillars
KEY STEPSKEY STEPS
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PILLARS OF EXCELLENCEPILLARS OF EXCELLENCE
Visionary LeadershipVisionary Leadership
Strong Catholic IdentityStrong Catholic Identity
Financial StabilityFinancial Stability
Quality AcademicsQuality Academics
Effective Marketing & CommunicationsEffective Marketing & Communications
Vibrant Student LifeVibrant Student Life
Enrollment ManagementEnrollment Management
19
STEP TWO:STEP TWO:
Understand the MarketplaceUnderstand the Marketplace Educational OptionsEducational Options DemographicsDemographics Needs of Parents & Needs of Parents &
StudentsStudents Business and Economic Business and Economic
TrendsTrends History & TraditionHistory & Tradition Location of the SchoolLocation of the School
KEY STEPSKEY STEPS
20
STEP THREE:STEP THREE:
Establish Resource Task ForceEstablish Resource Task Force Best and BrightestBest and Brightest Create a Viable PlanCreate a Viable Plan Implement the VisionImplement the Vision Evaluation Evaluation Continuous ImprovementContinuous Improvement
KEY STEPSKEY STEPS
21
STEP FOUR:STEP FOUR:
Understand Financial Understand Financial ComplexitiesComplexities
Income Vs. ExpensesIncome Vs. Expenses True Cost of EducationTrue Cost of Education Funding SourcesFunding Sources Tuition AssistanceTuition Assistance Parish SubsidyParish Subsidy Enrollment and Enrollment and
DevelopmentDevelopment
KEY STEPSKEY STEPS
22
STEP FIVE:STEP FIVE:
Educate Your CommunityEducate Your Community Honest and RealisticHonest and Realistic All Groups: Parish & All Groups: Parish &
CommunityCommunity Paper, Personal, Electronic Paper, Personal, Electronic
MediaMedia The Need for ChangeThe Need for Change The Value of Catholic The Value of Catholic
EducationEducation An Investment OpportunityAn Investment Opportunity
KEY STEPSKEY STEPS
23
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Analyze Revenue StreamsAnalyze Revenue Streams Cultivate ResourcesCultivate Resources National Search – Best National Search – Best
ModelsModels Customize for Your SchoolCustomize for Your School
KEY STEPSKEY STEPS
REVENUE STREAMSREVENUE STREAMS
Parish Tuition
Fundraising/Development
NEWNEW REVENUE STREAMS REVENUE STREAMS
Parish Tuition
Fundraising/Development
Diocese
Deanery Annual Fund
Planned Giving
Partnerships
Grants
SECURE NEW RESOURCESSECURE NEW RESOURCES
True Stewards
hip
K-12 Collaboratio
n
Shared Services
Business Partnershi
ps
Colleges &Universities
Community Service
Wisdom & Expertise
NationalNetwork/Angels
Office of Developme
nt
27
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models DiocesanDiocesan
A) A) Shared school funding Shared school funding through through
the diocesan the diocesan foundation and foundation and
endowments – endowments – dedicated todedicated to Catholic Catholic educationeducation
KEY STEPSKEY STEPS
28
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models DiocesanDiocesan
B) B) Shared school funding Shared school funding through through
the Annual Catholic the Annual Catholic Appeal – Appeal – Bishop’s AppealBishop’s Appeal
KEY STEPSKEY STEPS
29
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models DiocesanDiocesan
C) Endowment Campaign for C) Endowment Campaign for Catholic Catholic
SchoolsSchools
KEY STEPSKEY STEPS
30
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models DiocesanDiocesan
D) D) Explore a partnership Explore a partnership with the with the Cristo Rey Network of Cristo Rey Network of Catholic Catholic Schools – work-study and Schools – work-study and business supportbusiness support
KEY STEPSKEY STEPS
31
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models DiocesanDiocesan
E) E) Creating funding options Creating funding options through business and through business and corporate sponsorshipscorporate sponsorships
KEY STEPSKEY STEPS
32
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models DiocesanDiocesan
F) Establish F) Establish Diocesan-wide, Diocesan-wide, collaborative Marketing collaborative Marketing Campaigns and Campaigns and Enrollment Enrollment Management processManagement process
KEY STEPSKEY STEPS
33
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models DiocesanDiocesan
G) Create G) Create Diocesan-wide, Diocesan-wide, true Stewardship true Stewardship ProcessProcess
-- As a Way of Life-- As a Way of Life
KEY STEPSKEY STEPS
34
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Deanery/Cluster/RegionDeanery/Cluster/Region
H) H) Deanery/cluster support Deanery/cluster support of of Catholic Schools through Catholic Schools through shared parish investmentshared parish investment
KEY STEPSKEY STEPS
35
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Deanery/Cluster/RegionDeanery/Cluster/Region
I)I)Fair Share Tuition ModelFair Share Tuition Model Based on Family IncomeBased on Family Income
May Include May Include Volunteer HoursVolunteer Hours
- Gonzaga Prep - - Gonzaga Prep - Spokane, WASpokane, WA
KEY STEPSKEY STEPS
36
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Deanery/Cluster/RegionDeanery/Cluster/Region
J) Cost-Based, Needs-BasedJ) Cost-Based, Needs-Based Tuition ModelTuition Model w/Strong Development w/Strong Development EffortsEfforts - Bishop Heelan Schools, - Bishop Heelan Schools, IAIA
KEY STEPSKEY STEPS
NCEA NCEA Spice Spice Award Award
Winner Winner
37
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Deanery/Cluster/RegionDeanery/Cluster/Region
K) K) Collaborative models of Collaborative models of shared financing , services, shared financing , services, personnel and purchasingpersonnel and purchasing
KEY STEPSKEY STEPS
38
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Parish/SchoolParish/School
L) Support for Catholic L) Support for Catholic Schools from clergy, Schools from clergy, administration, faculty/staff administration, faculty/staff – dedicated resources and – dedicated resources and teamworkteamwork
KEY STEPSKEY STEPS
39
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Parish/SchoolParish/School
M) School Funding through M) School Funding through Parish Stewardship ProcessParish Stewardship Process
- Diocese of Wichita, - Diocese of Wichita, KSKS
KEY STEPSKEY STEPS
40
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Parish/SchoolParish/School
N) Parishioner support N) Parishioner support through through tuition assistance, tuition assistance, scholarships and scholarships and “ “Adopt-A-Student” Adopt-A-Student” process process
KEY STEPSKEY STEPS
41
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Parish/SchoolParish/School
O) Strong Development O) Strong Development Efforts: People Efforts: People Engagement, Annual Fund, Engagement, Annual Fund, Marketing, Enrollment, Marketing, Enrollment, Planned Giving, Alumni, etc.Planned Giving, Alumni, etc.
KEY STEPSKEY STEPS
42
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Parish/SchoolParish/School
P) Growth of School P) Growth of School Foundation, Endowment and Foundation, Endowment and scholarships –scholarships –
Tell the StoryTell the Story
KEY STEPSKEY STEPS
43
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Parish/SchoolParish/School
Q) Comprehensive Q) Comprehensive Marketing Marketing Campaign: 24/7Campaign: 24/7
The Value of a The Value of a Catholic Catholic Education – FOR LIFE!Education – FOR LIFE!
KEY STEPSKEY STEPS
44
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Parish/SchoolParish/School
R) Connection with and R) Connection with and incentives incentives for newly baptized and for newly baptized and newcomersnewcomers
KEY STEPSKEY STEPS
45
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Parish/SchoolParish/School
S) Engagement with Key S) Engagement with Key Groups:Groups: Alumni, Grandparents, Alumni, Grandparents, Past Past Parents, Businesses, Parents, Businesses, Community AgenciesCommunity Agencies
KEY STEPSKEY STEPS
46
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models Government SupportGovernment Support
T) Tuition Tax CreditT) Tuition Tax Credit Tuition Voucher Tuition Voucher
KEY STEPSKEY STEPS
47
STEP SIX:STEP SIX:
Research NEW Funding ModelsResearch NEW Funding Models NationalNational
U) National Capital U) National Capital Campaign for Campaign for Catholic SchoolsCatholic Schools
Supported by Supported by Bishops/ClergyBishops/Clergy
and every Dioceseand every Diocese
KEY STEPSKEY STEPS
48
STEP SEVEN:STEP SEVEN:
Gather Input From CommunityGather Input From Community Input SessionsInput Sessions SurveysSurveys Electronic PollsElectronic Polls Staff MeetingsStaff Meetings Deanery/Cluster MeetingsDeanery/Cluster Meetings
KEY STEPSKEY STEPS
49
STEP EIGHT:STEP EIGHT:
Determine NEW Funding ModelDetermine NEW Funding Model Master Plan for Fund-raisingMaster Plan for Fund-raising Best OptionsBest Options Numerous SourcesNumerous Sources Offers Varied Giving LevelsOffers Varied Giving Levels Tuition AssistanceTuition Assistance Strong Development EffortStrong Development Effort
KEY STEPSKEY STEPS
50
STEP NINE:STEP NINE:
Implement NEW Funding ModelImplement NEW Funding Model Phased InPhased In Embrace Transformative Embrace Transformative
ChangeChange Anticipate ResistanceAnticipate Resistance Continue to Gather InputContinue to Gather Input Ongoing Evaluation Ongoing Evaluation Create the NEW NormCreate the NEW Norm
KEY STEPSKEY STEPS
51
STEP TEN:STEP TEN:
Sustain Meaningful PartnershipsSustain Meaningful Partnerships National & Regional SchoolsNational & Regional Schools Bishop, Diocese and ClergyBishop, Diocese and Clergy Parishioners, Parents, Parishioners, Parents,
Alumni & Alumni & Friends, GrandparentsFriends, Grandparents Business, Community, Business, Community,
UniversitiesUniversities Angels – “Angels – “Adopt-a-Student”Adopt-a-Student”
KEY STEPSKEY STEPS
“It is time to recover our nerve
and promote our schools for the21st century. The current hospice mentality -- watching our schools slowly die -- must give way to a renewed confidence. ”
- Most. Reverend Timothy M. Dolan
Archbishop of New York
53
LEAD LEAD
THE THE
TRANSFORMATION!!TRANSFORMATION!!
THE FUTURE THE FUTURE
54
AA CTION PLANCTION PLAN
54
Work to be the BEST!Work to be the BEST! Educate Your Community Educate Your Community Engage the Task Force on Engage the Task Force on
Researching Researching and Creating New Financial and Creating New Financial Models.Models.
Collaborate w/Diocese and Collaborate w/Diocese and Schools.Schools.
Be a Good Steward of Your Be a Good Steward of Your ResourcesResources
Sustain Meaningful Sustain Meaningful PartnershipsPartnerships
Cultivate Quality RelationshipsCultivate Quality Relationships Establish Strong Development Establish Strong Development
EffortEffort GET MOVING & EXPECT GET MOVING & EXPECT
SUCCESS!!SUCCESS!!
“Education is integral to the mission of the Church to proclaim the good news.”
- Pope Benedict XVI, Speech to AmericanCatholic Educators, Washington D.C.
April 18, 2008