The Board’s Work and Financial Responsibilities

Dear Fayerweather Community,

Though there’s still frost on the ground and a bitter chill in the air, all through the month of February, the sunsets have been creeping steadily later, the sunrises earlier. Spring feels ages away, and yet this short month can often feel like a hinge in the year, and especially in the school year for all of us at Fayerweather. Going into our February break, we’re still in the thick of winter. Coming back, even as March stretches before us, we can see bend in the road, and the headlong rush to the end of the school year that will begin as soon as the days start getting warmer.

February is an important moment for the work of the Fayerweather Board, in particular, because it’s the time in which we make some of the key decisions that will lay the groundwork for the coming year. We (Kim and Courtney) felt it was an opportunity for us to share some perspective on the role of the Board and on the financial questions that all of Fayerweather’s leadership has been considering as we anticipate the next school year.

Fayerweather was founded in 1967, which puts us at 57 years old now. The school was founded in a moment of real social and political turbulence, and Fayerweather’s founding was definitely rooted within that anti-establishment moment. Like a lot of small nonprofits, what you see in Fayerweather’s history is an evolution in governance. We have worked with a lot of different governance models - some more experimental than others. In the earliest days, the board was actively involved in the running of the school and involved in many administrative decisions. As we’ve grown and matured, the needs and desires of our parent community have changed, the school has built the necessary administrative functions and expertise in areas like finance and development to - quite appropriately - manage its own operations. As that’s happened, the board’s role has shifted to one that’s focused principally on the long-term and the strategic. 

That focus centers on three key responsibilities:

One key way that the board contributes in particular to the long-term financial health of the organization is through strategic planning. We launched a strategic planning process earlier this month that will build on Fayerweather's new mission statement, outline key strategic goals for the school, and specify the actions required to achieve our goals. It will be an exciting opportunity to gather perspective and feedback from everyone in our community - faculty, staff, parents, students, and community partners– so we can develop a shared vision and plan for the future! The Head and her leadership team are partners to the Board in the development of this strategic plan, and in the execution of the goals we develop together. 

Financial planning is likewise a critical part of the Board’s work, and February is a milestone in that work, when every year the Board sets strategic priorities and the budget for the coming year.  

 

Three specific budget policies are established by the Board each February for the next school year: staff salaries (for the following year’s employment agreements); tuition rates (for enrollment contracts); and the budget for tuition aid (for awards that are made in early March). Though there are still many financial unknowns in February, it’s important for us to set these policies now, as they form the spine of the following year’s budget. 

Over the last two years, inflation has been one of the largest challenges to these policies. Our steady practice for many years was to benchmark our cost of living adjustments and our tuition adjustments to the Consumer Price Index (CPI) for the Greater Boston area. That was not a practical option last year or the year before, when the CPI jumped to 5.3% and 7% respectively. On the tuition front, we resisted that inflationary pressure and kept tuition increases between 3.5% and 3.85% each year. This year, with the return of more moderate inflation numbers, our tuition recommendations align again more closely to the CPI. We are entering this next school year in a strong position, thanks to the hard work of staff, faculty, and administration, and generosity in the parent community. 

With all this in mind, this year the Board made three budget decisions that we want to share with you now. 

As we observe every year, enrollment (both new admissions and the retention of current students) is the key to the school’s financial balance. Accordingly, both the Board and the School Leadership team are continuing to focus on attracting new students and families, and delivering on the value of a Fayerweather education for the families already in our community. Our strategic planning efforts this year will help inform what priorities will allow us to most fully meet our mission and the demands of the market going forward.

Many thanks for your continued partnership, feedback and commitment to Fayerweather. If you have any questions or concerns, please do not hesitate to reach out to either of us.