Freedom & Responsibility: A Glorious Counterpoint. AMI/USA

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Freedom & Responsibility: A Glorious Counterpoint. AMI/USA
TITLE
Conference (Boston, Massachusetts, July 20-23, 2000).
American Montessori International of the United States,
INSTITUTION
Inc., Rochester, NY.
2001-07-00
PUB DATE
115p.; "Freedom and Responsibility" copyright by Margaret E.
NOTE
Stephenson.
Association Montessori International of the United States,
AVAILABLE FROM
Inc., 410 Alexander St., Rochester, NY 14607 ($15). Tel:
716-461-5920; Fax: [phone]; e-mail: [email protected].
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*Administration; Adolescents; Child Development; Children;
DESCRIPTORS
Conference Papers; Conferences; Early Childhood Education;
Educational Philosophy; Educational Practices; Elementary
Secondary Education; *Freedom; *Montessori Method;
*Responsibility; Teacher Aides; Teacher Role
Montessori Preschools; Montessori Schools
IDENTIFIERS
ABSTRACT
This conference proceedings compile presentations from a
2000 meeting of the American Montessori International of the United States,
focusing on the Montessori view toward freedom and responsibility and
addressing other issues of importance in Montessori education. The papers
"Strategies for You and Your School"
presented at the conference are:
(1)
"Action-Oriented Agenda Keeps Board Meetings
(Charles Snowden, Jr.);
(2)
"Forming and Charging the Board
Moving" (Charles Snowden, Jr.);
(3)
"The Annual Agendas" (Charles
Committees" (Charles Snowden, Jr.);
(4)
"The Intimacy of Responsibility" (Renilde Montessori);
Snowden, Jr.);
(6)
(5)
"The Importance of
"Freedom and Responsibility" (Margaret E. Stephenson);
(7)
"Active Discipline"
Freedom in Our World Today" (Silvia Dubovoy);
(8)
"Theoretical Tenents [sic] of Freedom and
(Silvana Montanaro) ;
(9)
Responsibility for the 6-12 Year Olds" (Phyllis Pottish-Lewis) ;
(10)
"The Role of the
"Adolescent Theory: Erdkinder Outcomes" (David Kahn);
(11)
(12) "Setting
Teacher and the Role of the Assistant" (Annette Haines);
(13) "Freedom
Limits--So Little Understood, So Greatly Needed" (Judi Orion);
that Inspires Responsibility: Removing the Obstacles" (Cathryn Kasper);
(14)
"The Necessary Freedom To Become Montessori 'Erdkinder'" (Laurie
"Freeing the Child's Response-Ability: Celebrating the
Ewert-Krocker);
(15)
(16) "Poised for
Natural Genius of Children" (Thomas Armstrong);
Success--Building Character and Citizenship in Children" (John Rosemond);
(17) "Bringing Out the Best in Your Child: Achievement Begins at Home" (John
(18) "Spiritual Freedom and Moral Responsibility: A Most Glorious
Rosemond);
"Practical Applications of Freedom and
Counterpoint" (Eduardo Cuevas);
(19)
Responsibility in the Elementary Years" (Phyllis Pottish-Lewis);
(20)
"Understanding the Nature of the Industry and the Special Opportunities It
(21) "Freedom To Develop" (Silvana Montanaro);
Presents" (Joe Vaz);
(22)
"Beyond Open House--Sharing Montessori's Perspective with Parents" (Carla
"Some Conceptual Considerations in the
Caudill-Waechter); and (23)
Interdisciplinary Study of Immigrant Children" (Marcelo M. Suarez Orozco).
Some papers contain references.
(KB)
Reproductions supplied by EDRS are the best that can be made
from the ori inal document.
frclornEe,
responsbillty
A GLORIOUS
COUNTERPOINT
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044
Ck
Sheraton Colonial Hotel, Boston North
Boston, Massachusetts
July 20-23, 2000
Freedom & Responsibility
A Glorious Counterpoint
Margaret Elizabeth Stephenson Fund 2000
The Margaret Elizabeth Stephenson Fund 2000 (MES 2000) is the first financial
aid fund to benefit AMI teacher trainees. With the establishment of this fund,
students who meet the criteria will be eligible for partial scholarships at AMI
training centers in the United States.
Due to the generosity of 280 charter members, AMI /USA established MES
2000 in honor of Margaret Elizabeth Stephenson, who devoted her life to AMI
teacher training in the U.S. This fund recognizes and continues her invaluable
contribution to teacher training.
Miss Margaret Elizabeth Stephenson
AMI/ USA will encourage annual growth of the fund to address the changing
financial needs of trainees.
Margaret E. Stephenson is heralded as one
of the greatest interpreters of the principles
If you have any questions, or wish to support the fund, please contact us:
of Montessori education. In 1962, after
studying with both Dr. Maria Montessori
and Mr. Mario Montessori, she was com-
AMI/USA
missioned to initiate training in the United
410 Alexander Street
States where, for almost 40 years, she has
Rochester, NY 14607
conducted both Primary and Elementary
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Training Courses.
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UNESCO International Year for the Culture of Peace
We who understand Montessori at the deepest level know
which calls for everyone's involvement. A group of Nobel
instinctively that we are citizens of the world. The work
Peace Prize winners joined together to help clarify the reso-
we do, which joins us together philosophically, extends to
lutions of the United Nations and make them applicable
the very boundaries of the globe...and beyond. Because
to all persons. They created Manifesto 2000 which expresses
we are sensitively aware of our responsibility to all chil-
a universal goal of peace. It is not governed by a higher
dren everywhere, we seek to extend our confirmed val-
authority, but instead, relies on each individual's commit-
ues of a respectful culture of peace into the future.
ment to the true meaning of freedom, and the responsibil-
ity to live in accordance with its intrinsic rules and prag-
Year 2000 was proclaimed The International Year of the Cul-
matic values. As stated, they are: respect for all life, rejec-
ture of Peace by the United Nations General Assembly.
tion of violence, sharing with others, listening to under-
UNESCO is responsible for coordinating all activities re-
stand each other, preserving the planet and rediscovering
lated to this proclamation. One outstanding project exists,
solidarity.
© 2001, Association Montessori International of the United States, Inc.
All rights reserved.
This book and any portion thereof may not be reproduced for any purpose, whether private or public, without the expressed written permission of the
Association Montessori Internationale and the Association Montessori International of the United
TABLE OF CONTENTS
4
Conference Schedule
6
Strategies for You and Your School 0 Charles Snowden, Jr., ISM
Action-Oriented Agenda Keeps Board Meetings Moving 0 Charles Snowden, Jr., ISM
11
Forming and Charging the Board Committees 0 Charles Snowden, Jr., ISM
13
15
The Annual Agendas 0 Charles Snowden, Jr., ISM
The Intimacy of Responsibility 0 Renilde Montessori
17
Freedom and Responsibility 0 Margaret Stephenson
19
23
The Importance of Freedom in Our World Today 0 Silvia Dubovoy, Ph.D.
29
Active Discipline 0 Silvana Montanaro, M.D.
Theoretical Tenents of Freedom and Responsibility for the 6-12 Year Olds 0 Phyllis Pottish-Lewis
31
Adolescent Theory: Erdkinder Outcomes 0 David Kahn
41
45
The Role of the Teacher and the Role of the Assistant 0 Annette Haines, Ed.D.
53
So Little Understood, So Greatly Needed 0 Judi Orion
Setting Limits
Freedom that Inspires Responsibility: Removing the Obstacles 0 Cathryn Kasper
56
The Necessary Freedom to Become Montessori Erdkinder 0 Laurie Ewert-Krocker
61
64
Freeing the Child's Response-Ability 0 Thomas Armstrong, Ph.D.
68
Poised for Success - Building Character and Citizenship in Children 0 John Rosemond
75
Bringing Out the Best in Your Child: Achievement Begins at Home 0 John Rosemond
Spiritual Freedom and Moral Responsibility: A Most Glorious Counterpoint 0 Eduardo Cuevas
81
Practical Applications of Freedom and Responsibility in the Elementary Years 0 Phyllis Pottish-Lewis
85
95
Understanding the Nature of Me Industry and the Special Opportunities it Presents 0 Joe Vaz
97
Freedom to Develop 0 Silvana Montanaro, M.D.
Sharing Montessori's Perspective with Parents 0 Carla Caudill-Waechter
99
Beyond Open House and Orientation
Some Conceptual Considerations in the Interdisciplinary
Study of Immigrant Children 0 Marcelo M. Suarez Orozco, Ph.D.
103
CONFERENCE SCHEDULE
Thursday
July 20, 2000
2:00 p.m. - 5:00 p.m.
Administrator's Series
0 Strategies for You and Your School
Charles Snowden, Jr., ISM
0 The Intimacy of Responsibility
7:00 p.m.
Renilde Montessori
Reception
8:30 p.m.
Friday
July 21, 2000
0 Freedom and Responsibility
9:00 a.m. - 10:15 a.m.
Margaret Stephenson
10:45 a.m. - 12:00 p.m.
O The Importance of Freedom in Our World Today
Silvia Dubovoy, Ph.D.
2:00 p.m. 3:15 p.m.
Seminar Sessions
O Active Discipline
Silvana Montanaro, M.D.
O Freedom & Responsibility in the First Level of Development
Silvia Dubovoy, Ph.D.
O Theoretical Tenents of Freedom and Responsibility for the
6-12 Year-Olds
Phyllis Pottish-Lewis
O Adolescent Theory: Erdkinder Outcomes
David Kahn
O Educateurs sans Frontières
Renilde Montessori, Camillo Grazzini,
Hilla Patell
O The Role of the Teacher and the Role of the Assistant
Annette Haines, Ed.D.
O Setting Tuition and Fulfilling Your Mission
Charles Snowden, Jr., ISM
3:45 p.m. - 5:00 p.m.
Seminar Sessions
O Setting Limits
So Little Understood, So Greatly Needed
Judi Orion
O Freedom that Inspires Responsibility: Removing the Obstacles
Cathryn Kasper
O Work for the 9-12 Year Olds
Margaret Stephenson
O The Necessary Freedom to Become Montessori Erdkinder
Laurie Ewert-Krocker
O Educateurs sans FrontiOres
Renilde Montessori, Camillo Grazzini,
Hilla Patell
O Understanding Freedom and Responsibility
Annette Haines, Ed.D.
O Setting Tuition and Fulfilling Your Mission (con't.)
Charles Snowden, Jr., ISM
6
4
Saturday
July 22, 2000
Thomas Armstrong, Ph.D.
El Freeing the Child's Response-Ability
9:00 a.m. - 10:15 a.m.
O Responsibility as the Foundation for True Freedom in Education
10:45 a.m. - 12:00 p.m.
Marsilia Palocci
O 9-12 Roundtable Discussion
5:00 p.m.
2:00 p.m.
Sunday
July 23, 2000
Building Character and Citizenship in Children
O Poised for Success
9:00 a.m.
10:30 a.m.
John Rosemond
11:00 a.m. - 12:15 p.m.
Seminar Sessions
CI Bringing Out the Best in Your Child: Achievement Begins at Home
John Rosemond
O Spiritual Freedom and Moral Responsibility: A Most Glorious
Eduardo Cuevas
Counterpoint
O Practical Applications of Freedom and Responsibility in the
Elementary Years
Phyllis Pottish-Lewis
El Obsetvation When to Intervene
Annette Haines, Ed. D.
CI Understanding the Nature of the Industry and the Special
Barbara Gordon, Joe Vaz
Opportunities it Presents
2:00 p.m. - 3:15 p.m.
Seminar Sessions
El Teen-Proofing: Understanding and Managing your Teenager
John Rosemond
O Freedom to Develop
Silvana Montanaro, M.D.
El Beyond Open House and Orientation
Sharing Montessori's
Carla Caudill-Waechter
Perspective with Parents
CI The Prepared Environment A Key to Independence
Annette Haines, Ed.D.
El How to Develop a School that Stresses Quality and Service to
Barbara Gordon, Joe Vaz
the Community
General Session
5:00 p.m.
3:45 p.m.
AMI/USA Research Update
Renilde Montessori, Silvana Montanaro, M.D., Marsilia
Closing Panel
Palocci, and Margaret Stephenson
Virginia McHugh
Closing Remarks
Banquet Address
7:30 p.m.
El Some Conceptual Considerations in the Interdisciplinary Study of
Immigrant Children
Marcelo M. Suárez Orozco, Ph.D.
7
5
Strategies for You and Your School
Charles Snowden, Jr., ISM
deductible.
ing strategy. Finally, present the results
Pricing, Affordability, and Mission
to the board for a decision.
Let's make only a token increase
Pricing should be setting tuition to
this year because we have taken
If your financial need calls for sub-
cover costs for the kind of school you
heat for higher ones in the past
stantial tuition increase(s) and you are
want.
("give our parents a break"). still gun-shy about a much larger hike
Affordability is not really a math-
than you have made in the past, at least
ematical computation but a family's
go higher than you would otherwise
The "Tuition Cap"
willingness to pay that tuition.
have done. Test out these theories in
You will "reach the top" if:
A school with a well-defined and
you do not offer quality pro-
your own environment .
. then do the
well-implemented mission stands out
.
grams
right thing next year.
in the eyes of parents and students.
you do not regularly inform par-
The program has specific and
Insights on private school operation
ents about the quality
unique characteristics
you do not recognize that your
The challenge of setting tuitions
The faculty believes in and de-
parents are consumers
Your board of governors bears re-
livers the requisite programs
you do not form a bond with
sponsibility for establishing tuitions.
and services
This is not an easy task. On the one
parents
The quality of these services de-
hand, there is the goal of serving an
you do not tell parents how you
termines value to constituents
differ from public schools and
identified market without excluding
other competitors
large numbers of families through pro-
Five Questions To Ask Before Setting
hibitive pricing. On the other hand,
you are not open with parents
Tuition
there is the goal of providing quality
about your finances
you do not seek parent advice
programs in an ever-demanding envi-
Why are we in business?
ronment. In short, you want the best,
and involvement
Who are our customers?
but you are scared that setting higher
you are not a good steward
What will we offer them?
you are not prudent and wise tuitions will cause current families to
Who will provide the service?
you cannot justify that every-
What are the expected out-
withdraw and discourage prospective
thing you do benefits students
families from even applying.
comes?
and parents
The typical board meeting devoted
you do not market your school
to pricing begins with a review of the
Erroneous premises employed in tu-
recurrent arguments for tuition in-
constantly
ition setting:
creases:
There is a traffic bearing point.
Governance
Set the price we feel will be
inflation;
real-dollar salary improvement
Tuition setting: a true test of board leader-
easily accepted, and then see
for faculty and key personnel;
ship
what we can afford.
cost of new equipment, re-
All but a few schools suffer from
Only one year's tuition should
inadequate funding. As a result, pro-
sources, and technology;
be considered at a time.
Our past tuitions have been
grams are limited or of lesser than de-
need for additional personnel to
improve services and program
sired quality, faculty must work at very
ideal.
low salaries, or classes are much larger quality;
Pay careful attention to prices
higher cost in several areas of
than anyone wants. Have the courage
charged by other private/inde-
to charge what it costs to operate the
general operation.
pendent schools.
The focus is the next year, com-
kind of school you want. Be responsible
Base any measure of capacity to
pared with the past (known) year and
to those you are committed to serve.
pay on our own (trustee-parent)
the year currently unfolding. Discus-
Take the time to assess every ele-
circumstances, those about
ment. Assign a board committee to
sions are influenced by what other lo-
whom we are concerned, and
cal private schools charge and what
settle on what really should constitute
those who speak out the loudest
quality core programs and services at schools similar to yours in the region
(the "squeaky wheels").
your school. At the same time, charge
charge. (Perhaps there is perspective on
Inflation is the principal factor in
where your school sits nationally in a
another committee to review your sal-
the drive for tuition increase.
ary and compensation structure, deter-
spectrum of schools.)
Keep tuitions such that the great-
Board members, then state posi-
mine needed changes, and estimate the
est possible number of families
personnel cost involved in the pro-
tions based on their own experiences
can afford to pay the full price.
grams and services identified by the
as business people and often as parents
If we maintainlow tuition, those
of enrolled children
companion committee. Have both com-
all to the point of
with greater capacity will donate
mittees report to the Finance Commit-
what they believe the "traffic will bear."
at least to the extent of the higher
tee and challenge it to develop a fund-
Many give anecdotal accounts of finan-
tuitions we need because it is
6
Charles Snowden, Jr., ISM
point and probably from a cash
cial stress experienced by a few fami-
Financial Management
standpoint).
lies they know.
Financial equilibrium: walking the
While purchase and installation of
The debate frequently comes down
budget tightrope
computers and related non-person-
to a battle between those who argued
Private-independent school enroll-
nel expenses are often considered
for a minimal increase but who were
ment is generally healthy. Classrooms
capital expenses (as they should be),
persuaded to move to a higher figure
are full; waiting pools are ample. The
the resulting operating expenses can
of "x" dollars, and an opposing group
comfort level thereby produced in
be expected to continue to mount as
that argued for a much larger increase
many boards and administrations can
a percentage of overall budget. When
but gave in to pressure and moved
be dangerous.
coupled with direct personnel ex-
down to a figure that is $25 above
The following factors caution
penses for maintenance of networks
..as if $25 per year is a significant
against complacency. At the same time,
and systems, and for instructional
difference!
they argue for an even heavier empha-
costs specific to these systems, some
We contend that boards that rely
sis on strategic planning than is cur-
schools have already reached or ex-
on this arbitrary "seat-of-the-pants"
rently in vogue particularly on the fi-
ceeded a figure of 10% of total oper-
model are not serving their schools
nancial aspects of strategic planning.
ating budget allocated to computer
well. The pricing process should be
Many schools have developed ag-
systems and associated (personnel
based on many more and better re-
gressive, sophisticated annual giving
and other) costs.
searched premises than those underly-
programs and experienced sharp
ing this scenario. This entire issue of To
percentage increases in annual giv-
Financial Equilibrium Principles
The Point details our thoroughly tested
ing campaign totals. This steep gra-
On the one hand, schools have full
positions regarding tuition setting. The
dient cannot be sustained indefi-
classrooms and waiting pools. On the
concepts have been successfully em-
nitely, and, in some schools, has al-
other, they are experiencing "tapped
ployed in hundreds of private schools
ready become flat.
out" alternate revenue sources coupled
of all types and sizes, urban and rural,
Many schools have relied upon aux-
with difficult to control expenses. In the
in every region.
iliary services, particularly summer
face of this mixed picture, two sets of
programs and extended day pro-
principles rise to positions of even
Your wallet vs. school need
grams, as vehicles to supplement tu-
greater importance than they have his-
On most boards, the majority of
ition/fee income levels. While fewer
torically held. The first set includes the
members are current parents. Such in-
examples are at hand of these hav-
following principles.
ing "peaked," these services will
dividuals add a great deal to the board:
Operating budgets must be brought
deep and abiding interest in the school,
eventually reach a saturation level as
under control without relying on in-
first-hand knowledge of student opin-
well.
creased enrollments, increased an-
ions and reactions (drawn from their
Many schools have seized (at least
nual giving, and increased auxiliary
own children and classmates), open
theoretically) upon the idea of en-
services.
lines of communication with other par-
dowment as "the answer" to keep-
Your school's balanced budget must
ents (often as much a consequence of
ing tuitions at manageable levels
include appropriately funded alloca-
the social activity of their spouse as
and, thus, the answer to keeping their
tions for depreciation, for renewal
their own interchanges), and conclu-
schools affordable for current fami-
and replacement of physical assets,
sions drawn from observations made
lies. But shallow interest rate gradi-
and for professional growth and de-
while attending events or simply visit-
ents in recent years, coupled with
velopment of "people assets." Not
ing the school. Yet, many of these same
competition from successful major
one of these constitutes a legitimate
individuals have a problem separating
fund-raising campaigns that have
area in which to "save" money.
their family from what often are the
endowment as a major target, argue
Your school's balanced budget must
best interests of the school.
against this as a practical solution of
realistically address the basic, three-
For example, if their child has had
significance.
part operations funding equation.
a bad experience with a teacher, they
In recent years, many schools have
Schools tend to "wish" for low class
find it difficult to believe that the school
experienced sharp percentage in-
sizes and strong faculty compensa-
is well-served by that teacher. And, im-
creases in unfunded tuition aid. Its
tion packages in combination with
portant to the topic of price-setting,
gradient, too, cannot be sustained
low tuitions. This combination sums
they resist needed tuition hikes because
indefinitely and, as with annual giv-
to insolvency and cannot be main-
they know the total impact on their
ing, has already either flattened or
tained over time (see the figure on the
and recognize that they
own wallet
become officially "frozen" (capped
next page).
are not candidates for financial aid.
by board and/or administrative ac-
At least one of those "wishes" must
If you are a current parent as well
tion).
be relinquished to yield larger-than-
Funding depreciation in physical
as a member of the board, you must put
ideal class sizes, weaker-than-ideal fac-
aside this "conflict of interest" and
plant, particularly under recent FASB
ulty compensation packages, and/or
weigh what is best for the school and
regulations,' can be expected to in-
higher-than-ideal tuition levels. A use-
its service to the total constituency.
crease the percentage of operating ex-
ful strategic plan should firmly and
pense allocated to plant maintenance
forthrightly establish board-level
(certainly from an accounting stand-
9
7
Strategies for You and Your School
mission statement, a flattening of the
gradient (in percent-of-operating-ex-
higher salaries
holding
small
penses terms) is inevitable. While the
= insolvency
and benefits the line on
class
choice of making socioeconomic diver-
for faculty
tuition
size
sity a priority
first in the mission state-
ment and then in the operating budget
is certainly controllable, the flatten-
ing of the eventual percent-of-operat-
uncontrollable aspects of annual giv-
prioritization among these three neces-
ing gradient is not controllable if your
ing, tuition aid, auxiliary services, en-
sarily competing elements. (As ISM has
school is to remain solvent.
consistently noted, acceptance of the
dowment, and depreciation.
Annual giving production is a
Auxiliary services income is theo-
a weaker-than-ideal
second of these
retically controllable indefinitely, un-
faculty compensation package
is
function of a school's budget-balancing
like the previous two items. There is no
policies,3 of the overall development
likely, over time, to yield a faculty that
inherent and necessary limit on an up-
delivers weaker-than-ideal academic
excellence and organizational effort,
ward revenue gradient in this area,
and of what might be termed "super-
quality.)
whether expressed in actual dollars or
discretionary" income in the targeted
Once the operations budget is sol-
as a percentage of overall operating
i.e., in equilibrium
idly balanced
families.
budget.
If "discretionary" income in the
your strategic plan's financial and other
In practical terms, however, limits
private school context refers to a sort
components must doggedly honor that
soon appear. If, for example, your
equilibrium and must maintain that
of family "profit margin" from which
school decides to restrict its extended
equilibrium over time. As Hopkins,
tuition dollars can be drawn, then "su-
day program to the school's own stu-
Massy, and others have noted, "The
per-discretionary" income represents
dents, then expansion of that program
those funds that are available after the
idea behind long-run financial equilib-
beyond a certain point is not realistic.
rium is simply that in addition to hav-
first layer of discretionary income has
Yet, even if your school decides against
ing the budget in balance in a given
been spent.
The flattening of annual giving
such a limitation, constraints still inevi-
year, the aggregate growth rates of in-
tably come into play in regard both to
curves in recent years4 is a result of
come and expense should be equal" or
staffing levels and the capacities of your
schools having successfully enhanced
income should exceed expense.2
facilities and/or the property on which
This yields the second set of prin-
development excellence and effort. This
your facilities rest.
accomplishment produced a sharply
ciples.
It is unrealistic to expect auxiliary
upward revenue gradient for some
Any planning action that increases
services to provide indefinite increases
time, coupled with a consequent "us-
operating expenses requires a corre-
in percent-revenue levels
unless your
sponding action to increase operat-
ing up" of the super-discretionary pool
school is willing to build these pro-
of dollars. Two factors contributed to
ing revenues.
grams to the point where they surpass
Any circumstance that decreases op-
this draining of the super-discretionary
the size of the overall school operation.
erating revenues requires a corre-
pool: annual giving programs' success
The controllable aspects of endow-
in tapping that pool, and the national
sponding decrease in operating ex-
ment include the excellence and orga-
penses.
explosion in private philanthropic ac-
(
nizational priority placed upon a de-
Any planning action that brings a
tivity (which was probably caused in
ferred giving program, coupled with
one-time, non-operating expense
part by declines in both corporate and
skilled management of the principal
(e.g., construction, adaption, equip-
government philanthropic activity).
(investment management).
ment) requires support from non-op-
The largely controllable aspects of
Less-controllable aspects include
this flattening, then, include budget-
erating revenues (i.e., capital cam-
p a igns, major gifts programs).
the maturity of the deferred giving pro-
balancing policies and overall develop-
gram, including the overall health and
Schools that borrow to support one-
ment excellence and organizational ef-
the specific areas of growth within the
time, non-operating expenses must
fort. Once the annual giving organiza-
national and global economies, and
tion is both mature and superb, the
decide whether debt service is an
federal treatment of appreciated assets
annual giving revenue gradient may
operating or non-operating expense
for tax purposes. Current parents, look-
become "uncontrollable" (as far as the
and allocate accordingly.
ing ahead to college and retirement
gradient's upward continuance is con-
costs, may not be interested in giving
Controllable/uncontrollable Variables
cerned). It thereby becomes flat' for rea-
part of their assets to your endowment
sons unrelated to anything the school
Discussion in finance meetings of-
fund.
ten turns to the subject of "controlling has done or can do.
Whereas depreciation and renewal
expenses" or "maximizing revenues,"
The percentage of a school's bud-
of facilities were once controllable ex-
get allocated to unfunded tuition aid
but these phrases are, in private school
penses in the sense that they could be
cannot sustain a steady upward gradi-
finance, simplistic. Most finance factors
deferred indefinitely (on paper), this is
represent a mixture of controllable and
ent indefinitely, either. Even in schools
uncontrollable variables, as demon-
no longer the case. While schools may
in which socioeconomic diversity (as
still choose whether to fund deprecia-
strated at the beginning of this article.
distinct from socioethnic and/or socio-
tion in their facilities, the reporting of
cultural diversity) is paramount in the
Take a closer look at the controllable/
8