We are pleased to report that, despite the economic downturn experienced worldwide in 2008, BB&N remains strong by all metrics. Our financial health is driven by three primary revenue streams: tuition, annual giving, and endowment income. On two out of three of these fronts, we have reason to boast: demand for admissions continues to far exceed supply and giving this year to the Annual Fund grew by 13%.
A strategic challenge, however, is the size of our endowment per student which continues to be lower than many of our peer schools. The range among institutions in the Independent School League (ISL) is between $28,000 and $781,000 with an average of $238,000 per student. While our endowment weathered the recent storm better than most with a 6% increase between FY09 and FY10, we still lag behind with an average endowment per student of $53,030. Increasing the size of our overall endowment is one of the most important tasks we have as a community as it will reduce our dependence on tuition and annual giving.
Increased endowment would allow us to put additional resources toward two key strategic objectives: sustaining our commitment to financial aid and attracting and retaining the most talented and dedicated faculty possible. We cannot make dramatic steps in either of these areas utilizing tuition dollars or our current endowment income, which makes the continued generosity of our community imperative.
In light of the recent economic climate, the Finance Committee created a special task force charged with ensuring BB&N’s long-term sustainability by conducting an in-depth analysis of our financial viability and its drivers. It was clear that our students, teachers, and programs are among the best in the country. It was also clear that we are underfunded relative to our peer schools and could, in fact, be a stronger institution still.
The outcome of our efforts was a detailed, ten-year financial model with numerous metrics such as the relationship between tuition increases, faculty raises, and financial aid. Planning at a long-range and comprehensive level allows us to monitor and measure our efforts now and in the future while achieving our strategic and programmatic objectives. BB&N’s Board of Trustees is committed to strengthening and solidifying the School’s financial foundation. We look forward to working together to achieve this goal.
Brace Young P’14,’17, Trustee
Treasurer and Chair, Finance Committee
