It is decision time. Should we keep the parochial school open or close it? It is the start of the recruiting season. It is the start of the budget process. Now is the time to issue teacher contracts. We need a decision.
Is that a decision the board should make or has God already decided?
There are adverse trends that influence the decision process. Multiple years of declining enrollment is discouraging. When the donor trend matches the enrollment trend, it is discouraging. The economy is down. Inflation, the cost of benefits, and deferred expenses on the facilities all weigh heavily on the budget committee.
When one school closes, it makes it easier for the next to close. It sometimes feels right to close before the problem becomes worse.
Making the decision to close now assumes there is minimal opportunity for a different outcome this year.
Are there any trends or reasons that suggest a school should stay open? That question requires a unique answer for each school. Sometimes as bad as it may seem staying open is just what God wants.
Here is an example that may offer some hope.
Our client had a trend of declining enrollment (a capacity of 450 down to 120 in July 2009). Because of the budget pressures, they neglected to pay their payroll taxes. During the summer of 2009, the IRS became impatient.
The debt to the IRS was about 10% of the annual budget before the penalties and interest. Because of the low enrollment, 2009 – 2010 was projected to be an unprofitable year. How do you give the IRS 10% of your budget when there is already a projected loss?
They decided to negotiate with the IRS. That would at least give them time to think and plan.
Then the following happened:
A donor stepped forward and offered to pay part of the taxes but only if the IRS agreed to a multi-year payment plan. The hand of God or coincidence?
The fall fundraising campaign brought in 300 new donors and was approximately equal to last year’s income. Both are excellent signs in a down economy. The hand of God or coincidence?
The IRS became more impatient, froze the bank accounts, and seized the funds. In response, a group of donors made sufficient gifts to keep the school open. The hand of God or coincidence?
The IRS has now settled for a payment much lower than the actual amount owed and within the capabilities of the school. The hand of God or coincidence?
All of the problems, except the IRS, that troubled the school still exist (low enrollment, increasing expenses, poor economy, unpaid bills to vendors, and an out-of-date facility). However, the board is committed to keeping the school open.
Is this insanity or faith? The board’s view is that the four preceding steps are the hand of God at work. They believe that God wants the school to stay open. They believe that God moved many hearts to be generous. They believe there is a way out of the forest. They have the courage to look for the way out because they believe it is what God wants them to do.
God makes it possible to open every parochial school. He must have a plan for its continued operation. How much faith should we have that each school can be growing and financially stable? How hard should we look for the hand of God at work in the life of the school?
Please ignore the bad news for just a minute. Is there enough good news and help from God to justify keeping your favorite school open for another year?
Next Step:
Look back over the past 12 months.
What are the signs that God is doing things to keep your school open?
Share what you find with the board, the staff, and the donors.
If the signs are compelling, believe God has a plan for the school and wants to see His ministry continue and prosper.
Take the time to discern the plan God has for the school and then execute the plan
Yes, there are reasons to close even the best parochial school. There are also reasons to keep open the weakest school. Fighting your way through the tough times will teach the school new skills and make sustainability easier.
With faith, one can move mountains and keep schools open.
As always, contact us if you want help. We use a special process that offers a guarantee. For more information about our process and guarantee, you can click here.
Follow us on Twitter for periodic thoughts.
