Research Gleanings: Nonprofit Governance Practices that Predict Strong Fundraising Habits

By Dr. Harry Bloom, Founder and President, Benchmarking for Good, Inc.

During my doctoral studies at the Azrieli Graduate School of Yeshiva University, I was motivated to conduct largescale research on which nonprofit Board governance practices most significantly influence schools' financial and educational success. in a series of posts, I plan to share the fruits of that research. This post will present a research-validated governance roadmap to securing a Board seriously invested in its fundraising role.

What are the Board-Related Fundraising and Advocacy Practices Schools Want to Promote?

Fundraising is vitally important in ensuring the sustainability of day schools since schools typically rely on voluntary donations for 20-50% of their operating budgets. My experience as an Advancement Director suggests that these are the fundraising and advocacy practices Boards should embrace:

1. Board members give their school one of their top annual philanthropic gifts.

2. Board members attend and generate financial support for all school events.

3. Board members participate in major donor identification and cultivation.

4. The Board has an active Development Committee that sets fundraising policy and provides active fundraising leadership in support of the various campaigns of the school.

5. Board members actively communicate the school’s value and contributions to the community, including prospective families, community leaders, and donors.

   
   

   Which Governance Practices Predict Whether a Board will Embrace its Fundraising and Advocacy Role? 

   
   

   Our research, based on input from over 100 Board presidents-- found that the following good governance norms predict whether Boards succeed in embracing the aforementioned Fundraising and Advocacy practices.

Rationale

It makes perfect sense that these five governance practices lead to strong Board involvement in fundraising and advocacy because they align with three key principles of effective "teamwork." 

• We Hold Each Other Accountable: Heads of School are held accountable for reaching agreed-upon goals, and Board members for avoiding conflicts of interest and prioritizing the school's interests over their own.

• We Stay in Our Lane: Board members concentrate on their role in supporting the school’s strategic objectives and refrain from interfering in operational matters that undermine Head of School accountability.

• We Understand and Can Effectively Promote the Need for Financial Support: Board members are educated about their role in maintaining the school’s financial health and feel confident in making fundraising requests and engaging potential donors because they genuinely understand the school’s programs, their advantages, and their costs.

Next Steps

To discuss the implications of this article for your school's governance and advancement program and learn about how your school can participate in Benchmarking for Good's Governance survey grant programs, please contact Dr. Harry Bloom at harrybloom@benchmarkingforgood.org

#Nonprofit   #Governance   #Fundraising    #Board   #Education

Case Study of a Day School with High Perceived Value Relative to Tuition

By Dr. Harry Bloom, Founder and President, Benchmarking for Good, Inc.

In a highly competitive school environment, impacted by increasingly challenging economic conditions, schools that are able to deliver a strong educational product at an efficient cost will have an edge. Benchmarking for Good research over the past six months, conducted among parents of a dozen Jewish day schools, indicates that, on average, only about 1/3 of parents are very satisfied with the value they receive for the tuition they pay. Expressed in terms of Net Promoter Scores (NPS)--which net out the percentage of research respondents who are Promoters on the issue of value relative to tuition relative to those who are Detractors-- yields a median anemic NPS of 9%--and 1/3 of schools have negative scores.

Standout Performer: Joseph Kushner Hebrew Academy/Rae Kushner Yeshiva High School

However, as can be seen above, the highest performing schools on this measure outperform the median school by a significant margin. One such school is the Joseph Kushner Hebrew Academy/Rae Kushner Yeshiva High School of Livingston, New Jersey, a Nursery-12th grade Modern Orthodox day school. Forty-six percent of school families are very satisfied with value relative to tuition and its NPS is 21%, more than double that of the median school. This margin of difference motivated us to dig into the reasons for the school’s relative strength and five factors emerged as significantly correlated with parent positivity in this arena.

The Factors That Correlate Most Closely with the School's Perceived Value/Tuition

Note: In social science research, correlations of 0.5-0.7 is regarded as strong correlation.

Summary and Implications

In summary, while many schools struggle with achieving high parent perceived value relative to tuition, exemplary schools, such as Joseph Kushner Hebrew Academy/Rae Kushner Yeshiva High School, represent important models of relative success. Furthermore, market research plus statistical analysis provides strong indicators of the underlying drivers of value perception. Importantly, the factors that drive positive perceptions of value will likely differ significantly based on market priorities and the competitive offerings. But the technique of using market research plus sophisticated statistical analysis can provide a pathway for your school!

 If your school is interested in participating in Benchmarking for Good grant programs that will provide a pathway for it to enhanced perceived value, please contact Dr. Harry Bloom at harrybloom@benchmarkingforgood.org to see how it might qualify for future grant support.

#schools   #day schools   #perceived value   #quality    #tuition

Achieving the Impossible: Parents Who are Very Satisfied with Value/Tuition

By Dr. Harry Bloom. Founder and President, Benchmarking for Good

Getting day school parents to indicate they think a school offers strong value relative to tuition is a REALLY tough job. Based on an analysis of parent satisfaction survey responses on this issue, the schools with the highest satisfaction focus on the following issues which statistically correlate with strong perceived value relative to tuition.

Strongest Predictors of Value Satisfaction (and their correlation percentages)

1. Curriculum Innovation (r = 0.585) The factor with the strongest correlation with high perceived value satisfaction is parents’ perception of how innovative a school’s curricula are. This suggests that parents who feel they're getting cutting-edge education view the tuition as more worthwhile.

2. Academic Excellence in General Studies (r = 0.577) Strong secular academics shows nearly as high correlation with value perception, indicating parents strongly connect academic quality with tuition value.

3. Enrichment Programs for Advanced Students (r = 0.545) The availability of programs that challenge high-achieving students significantly impacts value perception.

4. Faculty Quality (r = 0.502) How parents rate the school's ability to hire and support quality teachers strongly predicts value satisfaction.

5. Individualized Learning Approaches (r = 0.502) Parents who feel the school adapts educational methods to individual student needs are much more likely to rate the tuition value highly.

Note: In social sciences and education, correlations of 0.5+ are often considered practically important

Summary and Next Steps

If a school wants to strengthen parents’ perceptions that it offers strong value for tuition, it should conduct regular research that probes how satisfied parents are with its performance on the abovementioned factors, and, if necessary, work to strengthen performance and its communication of that performance.

If your school would like to enhance parents’ perceptions of its value for tuition and explore Benchmarking for Good research grants to that end, please contact Dr. Harry Bloom at harrybloom@benchmarkingforgood.org

#Day schools   #tuition   #parent satisfaction   #education    #perceived value