Your Strategic Financial Plan: Protecting Stability Marker No. 4 (Hard Income)

Volume 33

No. 13//

October 17, 2008

The fourth-ranking ISM Stability MarkerTM deals with the percent of operations expense covered by "hard income," defined in ISM’s benchmarking systems as revenues that are billed (e.g., tuition) or funds transferred internally (e.g., usable interest from an endowment corpus). In ISM’s self-scoring system for Stability Markers, your school begins to earn points on this marker when your percent coverage reaches 92%, and tops out at full credit at 98%. (These percentages are for day schools; ISM’s scale for boarding schools looks quite different.)

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