KLINGSHARE:#9 KLINGCHAT - APRIL 16, 2020 FINANCE & ADVANCEMENT DURING COVID-19 KlingShare:#9 shares ideas generated during an online conversation that invited independent and international school CFOs and advancement professionals to discuss school finance during COVID-19. HOW MIGHT WE ADJUST OUR FINANCIAL MANAGEMENT AND FUNDRAISING EFFORTS TO ACCOUNT FOR COVID-19?
Pause fundraising and determine how, when, and for what purpose to resume. Delay giving days into May and focus on Donor Appreciation, Teacher Appreciation, aid for families in need, or other event-responsive causes. Study feasibility of planned capital campaigns for facilities and endowment. Check in with donors and prospects without bringing up giving. Balance honoring the relationship with the donors with meeting the needs of the institution. Reduce discretionary spending and explore alternative funding like SBA/PPP loans. Manage refunds as needed based on your enrollment contracts and circumstances. Some schools are offering refunds that can be used as credits for the following school year or used as a donation to the school. Build community. Focus on the school's mission, community engagement, and enrollment. Talk with alumni about viability for future students. Consider how to cope with loss from summer auxiliary services and camps. What might it look like to provide online programing instead? WHAT ARE THE POTENTIAL LONG-TERM IMPACTS OF COVID-19 ON A SCHOOLS’ FINANCIAL HEALTH?
The 2008/2009 financial crisis can serve as a model for future challenges and solutions, as well as a timeline for rebounding. Immediate cash flow issues caused by tuition refunds at varying levels. PPP loans may bridge gaps, but consider the requirements and conditions of funding. Concerns about impacts on future enrollment from both local families and from international students if there are visa and travel issues. Increased need for financial aid for current and new students, with the possibility of extensions for current families; lack of aid has huge implications for enrollment. Challenges to maintain certain programs and levels of staffing. Cuts to salaries or positions may be necessary. There is much uncertainty about remote learning/hybrid model such as costs, feasibility, and how it can be in line with quality traditional experiences.
KlingShare:#9 | Klingenstein Center, Teachers College, Columbia University | klingensteincenter.org