Break It in Order to Fix It:

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

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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.


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.

!


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This is about This is about

FAITH FAITH

& &

FINANCES.FINANCES.

!


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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.

!

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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

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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

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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.


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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.


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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.


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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.


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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

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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

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SeeingSeeing

CHALLENGES CHALLENGES

AsAs

YOUR RESPONSE YOUR RESPONSE

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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

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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

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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

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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

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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

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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

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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

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STEP SIX:STEP SIX:


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

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STEP SIX:STEP SIX:


C) Endowment Campaign for C) Endowment Campaign for Catholic Catholic

SchoolsSchools

KEY STEPSKEY STEPS

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STEP SIX:STEP SIX:


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

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STEP SIX:STEP SIX:


E) E) Creating funding options Creating funding options through business and through business and corporate sponsorshipscorporate sponsorships

KEY STEPSKEY STEPS

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STEP SIX:STEP SIX:


F) Establish F) Establish Diocesan-wide, Diocesan-wide, collaborative Marketing collaborative Marketing Campaigns and Campaigns and Enrollment Enrollment Management processManagement process

KEY STEPSKEY STEPS

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STEP SIX:STEP SIX:


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

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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

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STEP SIX:STEP SIX:


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

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STEP SIX:STEP SIX:


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

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STEP SIX:STEP SIX:


K) K) Collaborative models of Collaborative models of shared financing , services, shared financing , services, personnel and purchasingpersonnel and purchasing

KEY STEPSKEY STEPS

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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

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STEP SIX:STEP SIX:


M) School Funding through M) School Funding through Parish Stewardship ProcessParish Stewardship Process

- Diocese of Wichita, - Diocese of Wichita, KSKS

KEY STEPSKEY STEPS

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STEP SIX:STEP SIX:


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

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STEP SIX:STEP SIX:


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

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STEP SIX:STEP SIX:


P) Growth of School P) Growth of School Foundation, Endowment and Foundation, Endowment and scholarships –scholarships –

Tell the StoryTell the Story

KEY STEPSKEY STEPS

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STEP SIX:STEP SIX:


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

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STEP SIX:STEP SIX:


R) Connection with and R) Connection with and incentives incentives for newly baptized and for newly baptized and newcomersnewcomers

KEY STEPSKEY STEPS

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STEP SIX:STEP SIX:


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

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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

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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

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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

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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

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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

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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

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LEAD LEAD

THE THE

TRANSFORMATION!!TRANSFORMATION!!

THE FUTURE THE FUTURE

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AA CTION PLANCTION PLAN

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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

Break It in Order to Fix It:

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