Christian School Scholarship Funds

Many Christian schools would break even each year if they didn't have to give so much financial aid. Said another way, schools that could collect full tuition come close to having a balanced budget.

For many schools (mine included) financial aid to needy families is not funded by external means; we just see it as "negative income." In reality, our schools' average realized income is ten to twenty percent less than the published rates.

Christian schools want to reach more students and families with Christian worldview education. So, how do we go about it?

First, we pray for guidance in how to award financial aid. Many schools have solid processes that require the student to maintain high academic and behavior standards as well as having the parents submit financial information that is evaluated by third-party analysts who evaluate how much tuition the family can pay.

Next is the funding sources. There are some foundations who will help schools underwrite the annual scholarship/financial aid (using these two terms interchangeably in this blog) requirements. The problem with foundations is that they will only fund a school for one to three years; then they move on to another organization.

There are two ideas that foster generous giving and build long-term relationships with the school and even needy parents.

Scholarship Fund or Endowment
This can be started with a single large gift or just committing funds on a regular basis until it builds to a large amount. The idea is to maintain the principle and take out the earnings (or some fixed percentage), say 5%, each year which is designated for scholarship. An endowment of one million dollars would contribute $50,000 to scholarships for year. How it is divided and allocated is a function of school policy. This kind of giving may be interesting to grandparents who might have appreciated securities, real estate, or life insurance policies.

Student Sponsorships
This idea is popular in urban schools where most of the students needs lots of aid to be able to attend. In these settings, sponsoring families will contribute a ten to twenty percent share for a student's monthly requirement. The school can invite donors to sponsor a student chosen by the school. Here is a place where a school can be very creative. For example, two donor families could contribute $1,500 per year, which is fifty percent of a $6,000 tuition. These sponsors could meet the family and see if there are other ways to support them, thus strengthening the connection and making it more than just a financial transaction.

As we go about these plans, keep in mind Paul's admonition from Philippians 4:17 Not that I am looking for a gift, but I am looking for what may be credited to your account.

May our donors experience the joy of giving generously.