FINANCIAL DETAILS

By 2027–2028, we aim to establish two essential financial buffers:

    (a) Operating Cash Reserve

    A reserve of $450,000, equivalent to three months of core operating expenses, will provide a cushion for cash flow stability.

    Current monthly expenses total approximately $150,000, with $115,000/month allocated to payroll alone.

    (b) Capital Reserve Fund

    A fund of $100,000 will be designated for facility improvements and  strategic infrastructure investments, supporting the long-term vitality  of the school’s physical assets.

Once these reserve targets are  met, we will revisit and refine our annual budgeting strategy to reflect  the school’s improved financial stability and position for future  investment.

A key pillar of our financial strategy involves a gradual but significant reduction in tuition discounts, bringing our policies in line with the Association of Waldorf Schools of North America (AWSNA) recommendations of limiting tuition assistance to 12–15% of gross revenue. Currently our discounts account for more than double the AWSNA recommendations. 

To address this, we plan to:

• Introduce caps on the total Tuition Adjustment Program (TAP) support offered annually
• Phase in reductions to teacher tuition remission
• Implement modest adjustments to sibling discount structures 

While specific implementation strategies are still being developed, they will be guided by a commitment to equity, compassion, and collaboration with our community. Our goal is to reduce the total discount rate to 15% over the next 7 years, establishing clearer and more sustainable financial boundaries.

Our projections take a cautious  approach to enrolment, assuming relative stability rather than  aggressive growth. We have accounted for typical attrition—including  Grade 8 graduations—and anticipate new enrollments will largely offset  these losses. While future growth remains a possibility, our financial  planning does not depend on it, ensuring a more resilient foundation.

To account for rising  operational costs, our five-year projections include a 3% annual  inflation rate applied to salaries and general expenses.  Correspondingly, we have modelled a 3% annual tuition increase to ensure  financial alignment. While this increase is projected annually, it may  be implemented through periodic adjustments rather than incremental  year-over-year changes.

As enrolment stabilizes or grows, we anticipate that some cost  pressures may be alleviated through economies of scale. However,  sustaining competitive compensation for faculty and staff—a priority for  educational quality and retention—will require careful and proactive  tuition planning.

We have incorporated contingency scenarios around staffing and operating  expenses to allow for flexibility if enrolment trends shift. These  contingencies will help us remain agile while protecting the school’s  core mission and educational offerings.