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In most Christian schools, a dangerous condition exists. Because we
intentionally maintain low teacher-student ratios, the ministry is
"labor intensive" but not "revenue intensive!"
Our extensive work with the pilot schools in our program
has revealed that the condition of tuition dependence exists
universally in Christian education. On average, the pilot schools in
our program generate more than 86%
of the schools' total income through tuition and fees. While most
school ministries are supported by some limited fundraising efforts, a
modest church contribution, and other miscellaneous income sources, the
conclusion is undeniable that tuition provides the crucial measure of
support for the ongoing operations of the ministry.
Now consider where those dollars are going. Right at 90% of our pilot schools' operating budgets are devoted to paying personnel expenses!
What happens to the budget if the school suffers a 10% decrease in enrollment?
The inevitable conclusion is that cut-backs must be made, and most
likely those cut-backs will take the form of lay-offs of school staff
where the bulk of the money is being spent. This
leads to a dangerous "death spiral" as the school's quality suffers,
teacher-student ratios begin to climb, and ultimately parents withdraw
students and seek better alternatives.
Unfortunately, when the school is tuition-dependent, simply growing the
student body does not alleviate the financial pressures faced by the
administration. In order to keep teacher-student ratios low, additional
staff must be added for each group of additional students. The addition
of new students merely exacerbates the problems!
The good news is, there is a solution to the problem of tuition
dependency! Through Eternal Vision's endowment building process,
Christian schools can break the cycle through the development of an
income stream that is entirely independent of tuition dollars.
Once the endowment is fully funded, staff compensation will be nearly doubled
in most cases and completely removed from the budget! That means 100%
of the school's current tuition income will be available for spending
on everything else! Imagine the freedom for the administration to
improve quality and address program and facility needs!
Find out more about Eternal Vision's solution to breaking the cycle of tuition dependence.
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