Presented by: Miriam Prum Hess, Director BJE Center for Excellence in Day School Education

1. Day School Affordability:Lessons from the TrenchesJoin the Conversation@bjelosangeles@Money4DaySchool#JDSafford #najds2013 Presented by: Miriam Prum Hess, Director BJE Center for Excellence in Day School Education Dr. Sarah Shulkind, Head of School, Sinai Akiba Academy Rachel Slaton, Assistant Director BJE Center for Excellence in Day School Education

2. Challenges confronting day schools • Cost to families: • Exceptionally high cost of living in LA • Escalating annual tuition and fees • Perception that financial aid not available to middle income • School Capacity to provide financial assistance • Limited financial assistance dollars and definition of needy families • Lack of development infrastructure • Declining Enrollment in Jewish day schools • Declining birth rate • High number of Jewish students attending public and non-Jewish private schools • Students transferring to community colleges in 12th grade • Economic Downturn

3. Tuition Income as % of Budget:39 Los Angeles Day Schools ‘07-’12

4. % of Students Receiving FA: 39 Los Angeles Day Schools ‘07-’12

5. Short Term Vision: • Building/Strengthening Funding Partnerships • Increasing visibility, enrollment & retention • Cost-sharing/joint-purchasing opportunities • Building Development Infrastructure

6. Long-Term Vision:Endowment Development “In any model of financial sustainability for independent schools, endowment growth is a key factor. The schools that will be most secure and in existence in the future will be the schools that have committed to building their endowments.” – Pat Bassett, Executive Director NAIS

7. NAIS Indicators of Sustainability: Endowment Value (2008-2010)

8. Phase I: LA High School Affordability Model Funders Independent Evaluation F Financial incentives & structure for change BJE • Strategic Vision • Provide matching funds to incentivize endowment • Scaffolding for implementation • Implement marketing campaign • Training and Coaching • Leverage other resources Schools: Milken Community High School New Community Jewish High School Shalhevet High School YULA Boys High School YULA Girls High School Students from middle income families Fundraising Enrollment Build development capacity Provide tuition assistance Develop endowment Increase and diversify enrollment

9. Defining Middle Income • Determine basic cost of living in Los Angeles • Identify Jewish living values and costs • Determine Jewish middle income level • Educate community re: needs of & opportunities for middle income families

10. Role of Funders • Legitimize endowment as communal priority • Provide financial incentives for change

11. Role of Central Agency BJE works with the five Jewish high schools and provides: • Scaffolding to ensure success of implementation • Training • Marketing support • Website & Tuition Calculator: www.bjela.org/hsgrant

14. Role of Schools • Establish a leadership team committed to endowment • Create development infrastructure • Educate school community and embed endowment in culture of giving • Increase enrollment and stabilize enrollment of students from middle income families

15. Mid-term Results • Cultural shift • 5 High Schools • Increased and/or stabilized enrollment of students from middle income families • Endowment creation • Increased fundraising capacity • Greater day school community • Enabled BJE to begin Phase II – Generations LA working with 7 elementary schools • 12 schools currently committed to building endowment • Over $21M in pledges in 3 years • Other schools now understand the importance of endowment development and want to participate

16. New Community Jewish High School

17. Phase II – • Lessons learned in Phase I informed conceptualization of Phase II • Leadership buy-in (lay and professional) • Development infrastructure • Interim structural benchmarks • Professional Development/Coaching

18. Sinai Akiba Academy

19. Sinai Akiba Academy Endowment Goals $30 Million $1.5M annually 10 Year Goal: Top 25% Nationally 3 Year Goal: $4000/student

20. Lessons Learned • Central Agency • Buy-in of major funders critical to begin • Plays a strategic role • Changing the culture is hard work and takes longer than expected • You can’t be “a prophet in your own school community” • On-going training/coaching of schools is essential • $ and structural benchmarks need to be created • Schools • Buy-in of leadership – HOS, President and Development team is critical • Role of Development Department needs to be clarified at the outset • Difficult to find the right professional • Endowments can be built in terrible economies • Endowment campaigns help support and grow capital and annual campaigns • Can result in collaboration amongst schools in other areas

21. What the Model has to offer Based on early results, BJE’s work with 12 Day Schools shows promise for becoming one model to help schools: • Create development infrastructure with integrated endowment, capital, and annual giving components • Create a culture of philanthropy • Successfully raise endowment funds • Offer the opportunity of a day school education to students in middle income families

22. Learning from each other… • Any questions unanswered? • Other models? • Successes? • Challenges?