Communicating Budget

Dr. Uhl's podcast this week is a discussion with Tom Kiely of Marquette University on Financial best practices.

The conversation largely focuses on the roles of three bodies: the principal as leader and head steward, the board as an accountability body for the leader, and a finance person as a worker for the school (and/or parish) that handles the day to day operations.

In an ideal situation, I think that set up is great! However, many of our schools lack at least one of those three legs - a board that is capable of providing advice and accountability, a principal with a thorough knowledge of financial practices or the time to properly manage them, or a staff member that is capable, competent, and full of integrity.

This, however, was not the part of the conversation that captured my ear. Rather, the idea of what and how to communicate with parents - the largest group of stakeholders (outside of alumni) - regarding budget.

Following the lead of my mentor, I communicate our budget annually to the PTO - discussing challenges and opportunities. I have toyed with the idea of a broader communication for all families (or posting something on social media / website). However, I'm not sure if that is - in fact - a best practice.

The finances at our school are relatively stable. With a strong tuition base, solid culture of parent commitment to fundraising, and a parish which is able to contribute if needed. Our weaknesses are susceptibility to rising costs vs an inelasticity of tuition, fewer potential students, variability in leadership at the parish and school level, and a lack of outside support that is non-Archdiocesean.

One of my goals - as steward - has been to work towards a place where alumni giving and events happen and our outside donors make an impact on our community. I hope to inaugurate an annual campaign next year (with help from our still relatively new board) to ensure our finances are shored up.

Our long-term threats are largely demographic (fewer kids, fewer Catholics, rising CA costs), institutional (changes in the Catholic Church or parish), or structural (our main building was built in the 1920s).

I shared this SWOT analysis along with topline numbers at our PTO meeting (and at our support council meeting). Is it something worth sharing with the broader school or parish community in a one-way message? Thoughts?

Not that SWAT. SWOT analysis.