Finances

The teaching principal is responsible for working with the school board and treasurer to manage the school's finances.

Each spring, the board approves a budget for the following school year. The finance committee or an ad hoc committee comprised of at least the treasurer, board chair, principal or teacher, and possibly the pastor, should develop a budget to present to the full board.

Budget preparation should include a review of financial statements for the previous three to five years to determine an average trend for the various budget line items (both income and expense). Enrollment trends and projections should be considered when developing income projections. Adjust the income and expense entries until they are balanced, or income exceeds expenses. Your local conference may have budget guidelines, forms, and policies.

The school treasurer will present the proposed budget to the school board. They will need to respond to the school board's questions and be ready to make adjustments. After the school board approves the budget, it should be presented to the constituency, or approved representation of the constituency, for approval (refer to Conference/ Union codes for specific directions). Once the constituency approves the budget, send it to the local conference office of education.

Income line items in the budget include, but are not limited to:

• Church Subsidy. Most churches provide a significant portion of the school income through a financial allowance or subsidy. This gives every member an opportunity to support the school and reinforces that this is a church school.
• Tuition. Tuition is the main source of funding for the school's operation. Most schools raise tuition by 1-3% annually to offset the need for a large increase after several years. Reviewing tuition charges for the past two or three years is helpful when setting tuition rates. The superintendent will have information on tuition charges for schools of similar size and they can provide financial information that may be helpful when setting tuition rates.
• Registration and Entrance Fees. Registration fees should be sufficient to cover expenses such as textbooks, testing supplies, library/technology fees, supplies, and student insurance. Your local conference office of education may have recommendations as to what to include in entrance fees and what a typical entrance fee is.
• Fundraisers. Many schools conduct fundraisers, during the year to generate additional income. Anticipated fundraising proceeds may be included in the proposed budget.
• Direct Donations. There are several effective ways to encourage donations to the school. These include birthday or memorial gifts, posting a wish list on the school or church bulletin board, making direct requests for specific needs, or hosting a school "shower" through the Home and School Association. Each method helps connect community members to the school's mission and makes giving more personal and meaningful.