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Private & Independent Schools
Reply to "Feynman School Closing"
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[quote=Anonymous][quote=Anonymous]Most schools rely on fundraising and financing for a portion of their budget. Our k-8 (well established, no financial concerns) said that tuition covered about 80-some percent (82? 83? Something like that) of its annual operating budget. This is common. But it only works if the school has a good handle on and reasonable expectations for what it can fundraise each year. A small school or one that knows it doesn’t have enough community support needs to adjust its budget so that tuition covers what it needs to cover. [/quote] Schools don’t borrow money for operations. They close the gap between tuition and costs through donations and other non-tuition sources of revenue (e.g. camps). They may also draw a percentage from their endowment. What they do often finance is a portion of the costs for major capital improvements, acquisition of new real estate, and other expenditures outside of operations. [/quote]
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