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Improving Sustainability by Scaling up Multi-School Charter Organizations

Improving Sustainability by Scaling up Multi-School Charter Organizations. Linda Dawson Sandro Lanni Greg Moser. Sustainability through:. Diversification of revenue streams Increasing revenues Protection of assets Recruiting and retaining talent Capitalizing on expertise developed

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Improving Sustainability by Scaling up Multi-School Charter Organizations

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  1. Improving Sustainability by Scaling up Multi-School Charter Organizations Linda Dawson Sandro Lanni Greg Moser

  2. Sustainability through: • Diversification of revenue streams • Increasing revenues • Protection of assets • Recruiting and retaining talent • Capitalizing on expertise developed • Diversification to lower political risks

  3. Charter School A approaches • Foundation set up as private, nonprofit corporation • Board of donors not required to disclose finances • Not required to follow open meeting laws • As “parent” of charter school seeks grants • “Sister” corporation runs “University” graduating credentialed teachers • Separate from charter school corporation • Helps recruit and retain teachers • Separate income stream for school and charter employees • Statewide charter, in addition to local authorizer

  4. Charter School Organization B • Parent nonprofit corporation created to: • Holds real estate used by independent study schools • Contract with schools for back office, purchasing, real estate management and curriculum services • Charters from three authorizers • Allows coverage of all Southern California counties • Renewals staggered in time

  5. Charter School Organization C • Creating parent corporation to: • Hold real estate for schools through Limited Liability Company ownership • Hold new stock company to provide charter school construction services by licensed contractor • Provide professional development services on fee for service basis to unrelated schools • Provide school management services to unrelated school • Raises funds for charitable works overseas in which students participate and travel • Contracts with 7 charter schools operated by subsidiary corporation • Charters from 2 different authorizers

  6. SIATech Charter Schools Network • Multi -state operation • 9 Charters • 15 Job Corps partners in 5 states (CA., AZ., NM; AR; FL) • 3 MYcroSchools (GNV, JAX, Pinellas) • 2 Independent Study programs (El Centro, Ca and Santa Ana, Ca. • 5 NELA sites (FL.) • 13 Active Boards of Directors (2012-13) • 9 Charter Boards • 4 Corporations (SIATech, NEWCorp, SIATech, AZ., RAPSA)

  7. Mission, Vision and Values • Must be the foundation of the business model and the approach to scaling and sustainability • SIATech Mission We provide a premiere high school dropout recovery program engaging students through relationship-focused, high tech, and rigorous learning experiences resulting in Real Learning for Real Life • SIATech Values • Integrity, Respect, Service and Learning

  8. SIATech Strategic Priorities • Attract and retain quality staff • Nurture ongoing partnerships • Use accessible and timely data to inform decision making

  9. SIATech approaches • Licensing model • Provides “control” over unaffiliated schools • Provides income not subject to “unrelated business” tax • Protects intellectual property (curriculum, trademarks) • Allows quality control, protection of reputation Licensing agreement includes related services, such as: Curriculum and teacher support Professional Development IT support, specifications and purchasing services

  10. SIATech approaches • Subsidiary corporation (NEWCorp) • Contracts/licenses with out-of-state charter schools • Starts new charters out of state, generating grant funding (e.g., MYcroSchools) • Holds private school corporation (New Global) • Contracts to provide GED program services • SIATech expanding by offering IS programs through WIA partnerships

  11. Sustainability approaches should: • Diversify revenue streams • Increase revenues • Protect assets • Help recruit and retain talent • Capitalize on expertise developed • Lower political risks . . . . while serving the mission

  12. Potential Pitfalls • Over - Bureaucratization • Reduction in Locally Relevant Services • Over -Reliance on Funding from outside funders • Mission Creep • Replications effect on human capital • Loss of individual school visibility • Small mistakes magnified due to scale

  13. Improving sustainability by scaling up charter school organizationsPresented by: • Dr. Linda C. Dawson, Superintendent/CEOSIATech, Inc.2611 Temple Heights Drive, Suite AOceanside, CA 92056-3582P: 760-631-6078 F: 760-631-3411 Email: Dawsonl@siatech.org • Sandro Lanni,PresidentCharter School Management Corporation40925 Country Center DriveTemecula, CA 92591P: 951-694-3050 F: 760-631-3411 Email: slanni@csmci.com • Gregory V. MoserProcopio, Cory, Hargreaves & Savitch LLP525 B Street, Suite 2200San Diego, CA 92101P: 619-515-3208 F: 619-398-0179 Email: greg.moser@procopio.com

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