Hard Income Coverage and Strategic Planning

Ideas & Perspectives
Ideas & Perspectives

Volume 32

No. 9//

July 21, 2007

The third iteration of the ISM Stability MarkersTM places hard income as one of the most important predictors of a school’s ability to deliver educational excellence over time. (It is No. 4 of a list of 18.) For private­independent schools, it should be fundamental to attempt to fund operating expenses (including debt service and depreciation) from hard income—the term ISM uses to group tuition revenues, other fee sources, and interest/investment income. Our research suggests that this is a frequent occurrence.

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