Analyzing Christian School Finance
 

GraceWorks can help you effectively think through both the revenues and expenses of operating your Christian school.

Revenue Analysis

Christian School revenues are more fluid than most administrators appreciate. 

In terms of adding new students, we have a tremendous amount of research on how to increase word of mouth referral.

When it comes to word of mouth referral, we know how to turn it on, and we know how it gets turned off.   We know how to reliably measure it -- in one question.

We can analyze the program aspects of a Christian school to determine what makes a parent most satisfied and willing to refer -- in a two-minute survey! 

That means you can make decisions about program improvements from a marketing point of view -- Which of these possible improvements are most likely to result in more students? 

GraceWorks helps you analyze revenues in two basic ways:  marketing analysis tools and fundraising analysis.

Marketing Revenues Analysis

GraceWorks' Parent Satisfaction and Referral Survey is the simplest and most cost effective way Christian schools can understand overall parental satisfaction and willingness to refer.  The basic program is free and an in-depth analysis is only a few hundred dollars.

Marketing Audits provide a more in-depth snapshot of your current marketing situation.  Marketing Audits are particularly useful if you suspect your tuition rate or financial policies are not adequate ... and changes are needed.  

Oftentimes, an outside consultant can recommend and implement the changes needed in a way that minimizes both parent upset and attrition. 

To do this, GraceWorks' Marketing Audit builds the case for needed changes, and then helps you implement them smoothly.

Marketing Studies are the most in-depth marketing research GraceWorks does for Christian schools, typically resulting in 150+ practical recommendations for improvement. 

In addition to a thorough insider analysis,  GraceWorks utilizes a professional telephone survey organization to assess outsider perceptions, needs and wants.  This is a crucial for Christian schools looking to grow significantly.

Fundraising Revenues Analysis

Fundraising revenues are likewise more fluid than most school administrators realize.  For starters, most Christian schools need a systematic major gifts program, along with a long-term investment in planned gifts. 

Some Christian schools are struggling to come up with an adequate program for annual funds.

To assess where you are in fund development, GraceWorks has developed an affordable Fundraising Audit, which comprehensively looks at all aspects of your non-tuition revenues.

The results of the audit are specific recommendations on what you can do ... in order of priority.  GraceWorks even helps you organize a taskforce to receive and volunteer to help accomplish these recommendations.

If you are considering capital expansion, GraceWorks offers full Pre-Campaign Support Studies, which assess your overall support -- financial and people -- and how to maximize that support, short and long-run.

GraceWorks believes that the underlying assumption of the traditional "Feasibility Study" is antiquated.  A feasibility study asks:  Is the project -- as we presently conceive it -- feasible? 

GraceWorks Pre-Campaign Support Study asks -- How can we maximize support in the direction God is leading?  

A strong piece of advice.  If you are considering a capital expansion, get the fund development professions involved before the architects.  You may have God's direction right, but not the concrete conception of it.  Many Christian schools who brought in the architects too early ended up with a great deal of debt.

Expense Analysis

GraceWorks can help you think through cost and expense issues in two basic ways.

Expense Analysis #1:  Allocate Costs to Maximize Parental Satisfaction

First, as discussed above, GraceWorks will help you properly set up the segmentation (cross-tabs) of the Parental Satisfaction and Referral Survey to help you understand the most effective program enhancements. 

Or, if needed, the same logic can help you determine what programmatic cuts will be least damaging from a revenue point of view.

In addition, the Parental Satisfaction and Referral Survey is expandable to access with rifle-shot accuracy, the strengths and weaknesses of your program.  This is done with "differential questions" as described in the market research chapter of our Marketing Christian Schools:  The Definitive Guide.

Expense Analysis #2:  Splitting Unified Budgets

Some denominational or church-based schools operate on a unified budget with their sponsoring church.  If the combined school and church struggles financially, it is almost impossible to determine what the real financial issues are. 

When Christian schools do not understand their financial picture, there are many negative consequences:

the case for fundraising is weak,
it is impossible to determine a proper tuition rate,
financial aid is unnecessarily conservative and
paralysis in decision-making about class size or combined classes.

To sort this all out, GraceWorks President Dan Krause will work on-site or remotely to provide an accurate financial picture of your school, church and other affiliated programs, such as preschool, day-care or summer program. 

For more information, contact GraceWorks Ministries at (719) 278-9600.