Financial Stability

I believe we have it wrong.  We fear that we are going to lose our mission’s focus, when we should be worrying about not achieving our mission. The fear of losing our mission’s focus often surfaces around accommodating full-pay families. There’s a widespread assumption that prioritizing full-pay families to generate net tuition revenue somehow conflicts with our mission. This important segment really confuses our thinking. I once applied for a Dean of Enrollment position at a Quaker school. With 15 years of successful experience at two Quaker schools, I felt uniquely qualified. During a preliminary interview, the Head of School mentioned their biggest pain point: needing to generate an additional $1,000,000 in net tuition revenue. Despite feeling confident in addressing this challenge, I wasn’t invited back for a second interview. The consultant later told me, “You talked too much about full-pay families.” Ironically, afterwards, they went through 2 deans of enrollment in five years and I doubt they achieved their financial goal. The Financial Reality There’s a visceral reaction to the idea of full-pay families that blinds many to the bigger picture. No school would throw out its mission and decide that generating more money is better. Yet, the financial health of a school is directly tied to its ability to achieve its mission. Hundreds of schools have closed over the past five years, many before the pandemic, often due to financial instability. For instance, White Mountain School in New Hampshire recently announced its closure. Oldfields School has made announcements about closing twice over the last 15 years, but managed to survive. Others, like Chase Collegiate School and The MacDuffie School, transitioned from non-profit to for-profit to stay afloat. These schools’ mission statements likely sound very similar to yours, emphasizing intellectual development, ethical standards, and respect for diversity. But did Chase Collegiate and The MacDuffie School change their focus, because they wanted to make money?  Of course not! They were trying to survive and needed more full-pay families to do so. I wrote about school closings 10 years ago and found my list; it was a partial list by the way.  If any one has found the closings from the last 10 years, please send me the link. Evolving Our Mindsets: Fear the Right Thing If we believe that our missions have a purpose in this world, we need to evolve our mindsets. Fear can propel us to success, but we must fear the right things. Instead of fearing losing our mission’s focus, we should fear not achieving our mission. Without sufficient resources, we can’t achieve our mission effectively. Shrinking enrollments hinder our ability to fulfill our mission broadly and impactfully. If we have to close our doors like so many others have, achieving our mission becomes impossible. This journey has taught me that balancing financial stability with mission integrity is crucial. We must be open to evolving our strategies and perspectives, especially when it comes to accommodating full-pay families. By doing so, we ensure not only the survival but the thriving of our schools and their missions.