web analytics
March 5, 2015 / 14 Adar , 5775
At a Glance
InDepth
Sponsored Post


Home » InDepth » Op-Eds »

The Importance Of Strong Management In Day Schools

Goldstein-110212

One of the hottest topics across all spectrums in the Jewish community is the financial sustainability of Jewish day school education in America. Schools have invested a lot of time and resources to train their professionals in the art of fundraising, developing donor relationships, and launching effective capital campaigns. And there has been a concerted effort among Jewish educational organizations to establish programs to assist day schools in improving their governance and developmental practices.

In early 2011, the AVI CHAI Foundation, along with local foundations and federations in various Jewish communities, provided support to Yeshiva University’s Institute for University-School Partnership (YUSP) to launch a broad-based program to improve growth and performance. The goal of the program was to collect data from a pool of approximately 35 schools and then use that data as a comparative benchmarking tool to identify opportunities for revenue enhancements and expense reductions at a minimum of 10 percent of their respective budgets. Collectively these schools have a budget of $225 million, so a 10 percent improvement translates to $22.5 million.

In addition, Torah Umesorah is scheduled to begin a training program to educate yeshiva day school executives in effective leadership and management skills, including an emphasis on board development and fundraising.

And the Partnership for Excellence in Jewish Education (PEJE) recently announced the launch of MATCH, for the fourth time since 2004. This program, which went into effect on August 1, is designed to strengthen Jewish day schools by broadening the community of donors. To accomplish this, the program provides first-time donors the opportunity to leverage a donation of $10,000 or more at a matching rate of 50 cents to the dollar, up to $50,000.

These approaches are highly innovative and have the potential to be successful and helpful to many schools. However, programs that focus on fundraising and development can only be effective if there are no cracks in the school’s administrative foundation. A ship can only set sail once there are no leaks in its hull; otherwise it will not get very far.

I know of a school that found itself in dispute with local storekeepers for thousands of dollars in merchandise. There was general confusion concerning what was purchased and what was owed. As is the case with many schools, principals and teachers would purchase goods on credit, often forgetting to submit the bill to the finance office. At other times, the stores would mail the invoice to the finance office, which was unaware a purchase had been made. The invoices would not be paid right away so the store would then fax in the invoice. Over time, no one knew what was ordered, what was actually received, or what was paid. Sometimes the same invoice would be paid twice, even three times.

All this could have been avoided had some simple and easy internal controls been in place. Ultimately, that is exactly what the school did. First, it authorized one person to do all the purchasing of goods and services for the school and put a strict ban on all staff from making any purchases on credit. A letter was then sent to local stores informing them of this new policy. Storeowners were warned that if they accepted a purchase on credit from anyone other than the school’s authorized purchaser, they would be sent a tax receipt for the “donation.” Faxes would no longer be accepted either. Payments would only be made from the original invoice.

A requisition form was also introduced for all purchases of goods and services. Approval from the executive director was required before any purchase was made. When goods arrived at the school, they were counted and matched to both the invoice and the approved purchase requisition form. The school’s administrators were surprised to see how many times the quantity of items stated on the invoice was greater than what was actually received. A lot of money was saved by catching these errors. Even the shopkeepers were happy when they started getting paid on time.

To be clear, there are a great number of schools that do operate at a very high level of competency. Their administrations take seriously their fiduciary duty to parents and donors to operate their schools in the most professional and financially efficient manner. They have their finance offices humming along like well-oiled machines and their lay leadership is to be commended. For these schools, the YUSP benchmarking and strategic planning program, as well as other pioneering programs, would not only work but could ensure their viability and sustainability for decades to come.

About the Author: Jake (Yaakov) Goldstein is a CPA and part-time consultant for day schools and non-profit organizations. He is also the executive vice president of Torah Institute of Baltimore. He can be reached at jakegolds@gmail.com.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “The Importance Of Strong Management In Day Schools”

Comments are closed.

Current Top Story
Megillat Esther
The Origins of Purim
Latest Indepth Stories
Ron Prosor

Values at the very heart of the UN are threatened by extremist ideologies targeting our way of life

Ayatollah Ali Khamenei

Anti-Semitism today focuses on Israel and the quest to delegitimize it.

Ballots for elections "made in Samaria."

Any Jew who ties his fate to Israel should be able to vote in Israel’s elections-even before aliyah

A young Moshe Meir Weiss introduces his mother, Mrs. Agnes Weiss Goldman, to Rav Moshe in 1979.

There were no airs about him. Rav Moshe was affectionately known as the Gaon of Normalcy.

Israel’s full sovereignty over a united Jerusalem is the only path for true peace in the region.

Just like Moses and Aaron, Mordechai decides to ruin the party…

The president has made clear – I can’t state this more firmly – the policy is Iran will not get a nuclear weapon.

Obama has an apparent inability to understand Islam in particular and Mid-East culture in general

Pesach is a Torah-based holiday whose fundamental observances are rooted in Torah law; Purim is a rabbinic holiday whose laws and customs are grounded in the rabbinic tradition.

In honor of Prime Minister Netanyahu’s successful speech before Congress.

Mr. Spock conveys a message with painfully stark relevance to our world today, especially in the context of PM Netanyahu’s speech to Congress.

Obama created the “partisan politics” by asking Dem. party members to avoid Bibi and his address

Enough is enough. The Jewish community has a big tent, but the NIF should have no place in it.

I vote for the right and get left-wing policy. Every. Frigging. Time.

More Articles from Jake Goldstein
money

How much wealth exists in the American Orthodox community?

praying robber.jpeg

The pressure to live a lifestyle of the rich and famous can be overwhelming. This just serves, of course, to increase the risk of fraud and deceit.

One of the hottest topics across all spectrums in the Jewish community is the financial sustainability of Jewish day school education in America. Schools have invested a lot of time and resources to train their professionals in the art of fundraising, developing donor relationships, and launching effective capital campaigns. And there has been a concerted effort among Jewish educational organizations to establish programs to assist day schools in improving their governance and developmental practices.

Many American parents are passionate about providing their children with opportunities to participate in sports and develop as great athletes. A recent article in the Financial Post posed the question “Are your kids’ athletic dreams worth breaking the bank for?” For parents of elite athletes, the costs can be astronomical. Such parents designate “tens of thousands of dollars of their household budget to help their child’s athletic career blossom, a sacrifice that impacts everything from daily spending to retirement.”

A recent CNN Money article focused on how more students than ever are requesting need-based financial aid from the private schools they attend. “Private schools are getting flooded with financial aid applications, and a growing number of the parents seeking help are earning $150,000 or more a year,” the article stated. It also pointed out that “overall, the average cost of tuition at private schools across all grades is nearly $22,000 a year, up 4% from a year ago and 26% higher than it was in the 2006-07 academic year, according to the National Association of Independent Schools.”

Printed from: http://www.jewishpress.com/indepth/opinions/the-importance-of-strong-management-in-day-schools/2012/11/01/

Scan this QR code to visit this page online: