1. Break It in Order to Fix It: Break It in Order to Fix 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 Schools Catholic Schools

2. “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

3. 3 I. Opening Prayer II. Key Points & Considerations III. The State of Catholic Schools IV. Key Steps & Financial Models V. Making It Come Alive VI. Q & A & Action Plan  AGENDA

4.  KEY POINTS 4 ! The current dependence on tuition, fund-raising and parish subsidy will not sustain Catholic Schools.

5.  KEY POINTS 5 Sustaining the financial viability of our Catholic Schools is the MOST defining issue of our time. !

6.  KEY POINTS 6 This is about FAITH&FINANCES. !

7.  KEY POINTS 7 We need a NEW commitment, wisdom, patience, a true sense of community and clarity of mission. !

8. 8 You Have the POWER and the OPPORTUNITY to TRANSFORMOUR Catholic Schools.  THE CHALLENGE

9. 9 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 consolidated or closed. 34 new schools opened; 172 consolidated or closed. 1,822 schools have a waiting list for admission. 1,822 schools have a waiting list for admission. - Source: NCEA 2010-11 - Source: NCEA 2010-11  BY THE NUMBERS

10. 10 Total Catholic school student enrollment for the current academic year is 2,065,872. Total Catholic school student enrollment for the current academic year is 2,065,872. 1,467,694 elementary/middle schools; 1,467,694 elementary/middle schools; 598,178 secondary schools Minority student enrollment is 624,878 which Minority student enrollment is 624,878 which is 30.2% of the total enrollment. is 30.2% of the total enrollment. Non-Catholic enrollment is 307,458 which is 14.9% of the total enrollment. Non-Catholic enrollment is 307,458 which is 14.9% of the total enrollment.  BY THE NUMBERS

11. 11 43.0% of the schools are still in urban/inner city locales despite population losses and great financial difficulties in maintaining them. 43.0% of the schools are still in urban/inner city locales despite population losses and great financial difficulties in maintaining them. During that same period of time, suburban schools increased from 25.0% to 35.9% of the total. During that same period of time, suburban schools increased from 25.0% to 35.9% of the total.  BY THE NUMBERS

12. 12 Between the 2000 and the 2011 school years, 1,755 schools were reported closed or consolidated (21.5%). Between the 2000 and the 2011 school years, 1,755 schools were reported closed or consolidated (21.5%). The number of students declined by 587,166 (22.1 %). The most seriously impacted have been elementary schools. The number of students declined by 587,166 (22.1 %). The most seriously impacted have been elementary schools.  BY THE NUMBERS

13. 13 Elementary Elementary Mean parish school tuition: Mean parish school tuition: $3,383. Per pupil cost: $5,436. $3,383. Per pupil cost: $5,436. Secondary Secondary Mean freshman tuition: Mean freshman tuition: $8,787. Per pupil cost: $10,808. $8,787. Per pupil cost: $10,808.  BY THE NUMBERS

14. 14 We Face More Competition We Face More Competition 96% Lay Teachers 96% Lay Teachers Cost of Education Continues to Rise Cost of Education Continues to Rise Academic Needs – Learning Styles Academic Needs – Learning Styles Demographic Shifts Demographic Shifts Growth of Technology & Media Growth of Technology & Media The Need for Marketing – 24/7 The Need for Marketing – 24/7 Educational Options Educational Options The Decline in Enrollment The Decline in Enrollment  A NEW WORLD

15. 15 Governance Changes Governance Changes The Need for Planning & Visioning The Need for Planning & Visioning Branding Your Image -- Critical Branding Your Image -- Critical Enrollment Management Process Enrollment Management Process More Involvement From Alumni More Involvement From Alumni Capital Campaigns & Annual Fund Capital Campaigns & Annual Fund Innovative Curriculum Innovative Curriculum Expanded Role of Faculty Expanded Role of Faculty Need All Resources Need All Resources  A NEW WORLD

16. 16 SeeingCHALLENGESAs  YOUR RESPONSE

17. 17 STEP ONE: STEP ONE: Be a School of Excellence In All Areas In All Areas Continuous Improvement Continuous Improvement Total Quality Total Quality A Culture of Engagement A Culture of Engagement Seven Pillars Seven Pillars  KEY STEPS

18. 18  PILLARS OF EXCELLENCE Visionary Leadership Strong Catholic Identity Financial Stability Quality Academics Effective Marketing & Communications Vibrant Student Life Enrollment Management

19. 19 STEP TWO: STEP TWO: Understand the Marketplace Educational Options Educational Options Demographics Demographics Needs of Parents & Students Needs of Parents & Students Business and Economic Trends Business and Economic Trends History & Tradition History & Tradition Location of the School Location of the School  KEY STEPS

20. 20 STEP THREE: STEP THREE: Establish Resource Task Force Best and Brightest Best and Brightest Create a Viable Plan Create a Viable Plan Implement the Vision Implement the Vision Evaluation Evaluation Continuous Improvement Continuous Improvement  KEY STEPS

21. 21 STEP FOUR: STEP FOUR: Understand Financial Complexities Income Vs. Expenses Income Vs. Expenses True Cost of Education True Cost of Education Funding Sources Funding Sources Tuition Assistance Tuition Assistance Parish Subsidy Parish Subsidy Enrollment and Development Enrollment and Development  KEY STEPS

22. 22 STEP FIVE: STEP FIVE: Educate Your Community Honest and Realistic Honest and Realistic All Groups: Parish & Community All Groups: Parish & Community Paper, Personal, Electronic Media Paper, Personal, Electronic Media The Need for Change The Need for Change The Value of Catholic Education The Value of Catholic Education An Investment Opportunity An Investment Opportunity  KEY STEPS

23. 23 STEP SIX: STEP SIX: Research NEW Funding Models Analyze Revenue Streams Analyze Revenue Streams Cultivate Resources Cultivate Resources National Search – Best Models National Search – Best Models Customize for Your School Customize for Your School  KEY STEPS

24.  REVENUE STREAMS ParishTuition Fundraising/Development

25.  NEW REVENUE STREAMS ParishTuition Fundraising/Development Diocese DeaneryAnnual Fund Planned GivingPartnerships Grants

26.  SECURE NEW RESOURCES True Stewardship K-12 Collaboration Shared Services Business Partnerships Colleges & Universities Community Service Wisdom & Expertise National Network/Angels Office of Development

27. 27 STEP SIX: STEP SIX: Research NEW Funding Models Diocesan Diocesan A) Shared school funding through the diocesan foundation and the diocesan foundation and endowments – dedicated to Catholic education endowments – dedicated to Catholic education  KEY STEPS

28. 28 STEP SIX: STEP SIX: Research NEW Funding Models Diocesan Diocesan B) Shared school funding through the Annual Catholic Appeal – the Annual Catholic Appeal – Bishop’s Appeal Bishop’s Appeal  KEY STEPS

29. 29 STEP SIX: STEP SIX: Research NEW Funding Models Diocesan Diocesan C) Endowment Campaign for Catholic Schools  KEY STEPS

30. 30 STEP SIX: STEP SIX: Research NEW Funding Models Diocesan Diocesan D) Explore a partnership with the Cristo Rey Network of Catholic Cristo Rey Network of Catholic Schools – work-study and Schools – work-study and business support business support  KEY STEPS

31. 31 STEP SIX: STEP SIX: Research NEW Funding Models Diocesan Diocesan E) Creating funding options through business and through business and corporate sponsorships corporate sponsorships  KEY STEPS

32. 32 STEP SIX: STEP SIX: Research NEW Funding Models Diocesan Diocesan F) Establish Diocesan-wide, collaborative Marketing collaborative Marketing Campaigns and Enrollment Campaigns and Enrollment Management process Management process  KEY STEPS

33. 33 STEP SIX: STEP SIX: Research NEW Funding Models Diocesan Diocesan G) Create Diocesan-wide, true Stewardship Process true Stewardship Process -- As a Way of Life -- As a Way of Life  KEY STEPS

34. 34 STEP SIX: STEP SIX: Research NEW Funding Models Deanery/Cluster/Region Deanery/Cluster/Region H) Deanery/cluster support of Catholic Schools through Catholic Schools through shared parish investment shared parish investment  KEY STEPS

35. 35 STEP SIX: STEP SIX: Research NEW Funding Models Deanery/Cluster/Region Deanery/Cluster/Region I)Fair Share Tuition Model Based on Family Income Based on Family Income May Include Volunteer Hours - Gonzaga Prep - Spokane, WA  KEY STEPS

36. 36 STEP SIX: STEP SIX: Research NEW Funding Models Deanery/Cluster/Region Deanery/Cluster/Region J) Cost-Based, Needs-Based Tuition Model Tuition Model w/Strong Development Efforts w/Strong Development Efforts - Bishop Heelan Schools, IA - Bishop Heelan Schools, IA  KEY STEPS NCEA Spice Award Winner

37. 37 STEP SIX: STEP SIX: Research NEW Funding Models Deanery/Cluster/Region Deanery/Cluster/Region K) Collaborative models of shared financing, services, personnel and purchasing  KEY STEPS

38. 38 STEP SIX: STEP SIX: Research NEW Funding Models Parish/School Parish/School L) Support for Catholic Schools from clergy, administration, faculty/staff – dedicated resources and teamwork  KEY STEPS

39. 39 STEP SIX: STEP SIX: Research NEW Funding Models Parish/School Parish/School M) School Funding through Parish Stewardship Process - Diocese of Wichita, KS  KEY STEPS

40. 40 STEP SIX: STEP SIX: Research NEW Funding Models Parish/School Parish/School N) Parishioner support through tuition assistance, tuition assistance, scholarships and scholarships and “Adopt-A-Student” process “Adopt-A-Student” process  KEY STEPS

41. 41 STEP SIX: STEP SIX: Research NEW Funding Models Parish/School Parish/School O) Strong Development Efforts: People Engagement, Annual Fund, Marketing, Enrollment, Planned Giving, Alumni, etc.  KEY STEPS

42. 42 STEP SIX: STEP SIX: Research NEW Funding Models Parish/School Parish/School P) Growth of School Foundation, Endowment and scholarships – Tell the Story  KEY STEPS

43. 43 STEP SIX: STEP SIX: Research NEW Funding Models Parish/School Parish/School Q) Comprehensive Marketing Campaign: 24/7 Campaign: 24/7 The Value of a Catholic The Value of a Catholic Education – FOR LIFE! Education – FOR LIFE!  KEY STEPS

44. 44 STEP SIX: STEP SIX: Research NEW Funding Models Parish/School Parish/School R) Connection with and incentives for newly baptized and for newly baptized and newcomers newcomers  KEY STEPS

45. 45 STEP SIX: STEP SIX: Research NEW Funding Models Parish/School Parish/School S) Engagement with Key Groups: Alumni, Grandparents, Past Alumni, Grandparents, Past Parents, Businesses, Parents, Businesses, Community Agencies Community Agencies  KEY STEPS

46. 46 STEP SIX: STEP SIX: Research NEW Funding Models Government Support Government Support T) Tuition Tax Credit Tuition Voucher Tuition Voucher  KEY STEPS

47. 47 STEP SIX: STEP SIX: Research NEW Funding Models National National U) National Capital Campaign for Catholic Schools Catholic Schools Supported by Bishops/Clergy and every Diocese  KEY STEPS

48. 48 STEP SEVEN: STEP SEVEN: Gather Input From Community Input Sessions Input Sessions Surveys Surveys Electronic Polls Electronic Polls Staff Meetings Staff Meetings Deanery/Cluster Meetings Deanery/Cluster Meetings  KEY STEPS

49. 49 STEP EIGHT: STEP EIGHT: Determine NEW Funding Model Master Plan for Fund-raising Master Plan for Fund-raising Best Options Best Options Numerous Sources Numerous Sources Offers Varied Giving Levels Offers Varied Giving Levels Tuition Assistance Tuition Assistance Strong Development Effort Strong Development Effort  KEY STEPS

50. 50 STEP NINE: STEP NINE: Implement NEW Funding Model Phased In Phased In Embrace Transformative Change Embrace Transformative Change Anticipate Resistance Anticipate Resistance Continue to Gather Input Continue to Gather Input Ongoing Evaluation Ongoing Evaluation Create the NEW Norm Create the NEW Norm  KEY STEPS

51. 51 STEP TEN: STEP TEN: Sustain Meaningful Partnerships National & Regional Schools National & Regional Schools Bishop, Diocese and Clergy Bishop, Diocese and Clergy Parishioners, Parents, Alumni & Parishioners, Parents, Alumni & Friends, Grandparents Friends, Grandparents Business, Community, Universities Business, Community, Universities Angels – “Adopt-a-Student” Angels – “Adopt-a-Student”  KEY STEPS

52. “It is time to recover our nerve and promote our schools for the 21st 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

53. 53 LEADTHETRANSFORMATION!!  THE FUTURE

54. 54  ACTION PLAN 54 Work to be the BEST! Work to be the BEST! Educate Your Community Educate Your Community Engage the Task Force on Researching Engage the Task Force on Researching and Creating New Financial Models. and Creating New Financial Models. Collaborate w/Diocese and Schools. Collaborate w/Diocese and Schools. Be a Good Steward of Your Resources Be a Good Steward of Your Resources Sustain Meaningful Partnerships Sustain Meaningful Partnerships Cultivate Quality Relationships Cultivate Quality Relationships Establish Strong Development Effort Establish Strong Development Effort GET MOVING & EXPECT SUCCESS!! GET MOVING & EXPECT SUCCESS!!

55. “Education is integral to the mission of the Church to proclaim the good news.” - Pope Benedict XVI, Speech to American Catholic Educators, Washington D.C. April 18, 2008