The K-12 Business Office

The K-12 Business Office

Upheaval in conditions underlying K–12 fundraising demonstrate that schools should not overlook their revenue mix as a component of ongoing strategic planning. Data from the Urban Institute’s Nonprofit Almanac show that, across subsectors, social good organizations follow a multitude of revenue models. While different organizations may thrive through various combinations of revenue sources, institutions should avoid an over-reliance on any one source. 

As the pandemic has shown, lost income due to the cancellation of in-person events, fundraisers, galas, and more has left many organizations in weakened positions. Although crises like the pandemic are unpredictable, organizations should be wary of revenue sources that could exert an outsized influence on their budgets.  

Tuition Management

Of course, accurate billing and collection of tuition drives revenue for your school and ensures its long-term sustainability. But efficient and effective billing processes have even more benefits.  

To start, efficient billing processes can lower the cost of doing business. Utilizing electronic billing, for example, can reduce the amount a school spends on paper, postage, and envelopes. However, when mailing statements, batching them and utilizing bulk mailing rates can also help cut down on unnecessary costs. 

And of course, improving the timeliness of collections will improve a school’s cash flow. The faster the money comes, the more valuable it is to the school. Money today is always worth more than money tomorrow. 

But an often-overlooked benefit is improved relationships with parents and students. By having a well-documented, consistent, and fair process, each parent will have a clear understanding of what is expected of them and will also understand that no one gets treated differently. 

Understanding the billing process, identifying areas for improvement, and benchmarking the results is the best way to ensure a school improves its ability to turn more of its receivables balance into cash. When evaluating your tuition management process to make improvements, you should focus on four aspects: clarity, accuracy, timeliness, and simplicity. 

If a school is able to provide clear, accurate statements in a timely fashion and make it simple for parents to pay, then it will be able to lower expenses, improve cash flow, increase parent engagement while strengthening relationships, and increase revenue. 

Studies show that families value receiving clear and helpful information about tuition and financial aid when applying to private schools. Moreover, applicants tend to feel positively about the process and the outcome.  

Partnering with Enrollment to Build Your Financial Aid Program

Year-after-year, the cost of tuition at private schools have risen without pause. According to the National Association of Independent Schools, the average tuition at their member day schools has increased by 50% and boarding school tuition has increased by just over 70% over the past decade.  

To bridge the gap between financial aid objectives and performance, school leaders should keep these tips in mind: 

• When building your school’s financial aid policy, start with your school’s mission. Keeping the mission in mind while setting a financial aid policy that’s fair and appropriate for your students will enable and strengthen your school’s purpose. 
• Enrollment and financial aid teams should engage in meaningful conversations about the desired outcomes for the financial aid season, before the first application is submitted or the first award decision is made. 
• Staff should have clear strategic guidance and priorities on the school’s financial aid investment goals. 

• Give staff the time, tools, and training to build confidence in their decision-making. 

Financial aid isn’t just about assessing a mission-appropriate family’s ability to pay, it is also about serving a school’s strategic objectives and mission. It is both an art and a science. Financial aid teams that keep these concepts in mind will help their school serve their families well and create a fair and consistent process that supports their school community.