Why is Fundraising Necessary at Moreton Bay College?
There are often many misconceptions in general about Independent Schools and where their funds come from. At Moreton Bay College, we believe it is important to provide transparency to the Community and explain how capital works are being funded and why fundraising is such a critical component.
Question: How are Capital Works funded at MBC?
Answer: The College undertakes short and long term (5 to 10 year) financial plans in order to provide guidance when assessing how future capital works will be funded.
Capital works in non-government schools can only be funded by:
- Raising funds through donations received
- Borrowing funds through normal lending arrangements with financial institutions
- Utilising any reserve funds which may have accumulated over time (this can only occur in years when capital works are not being undertaken)
- Minor capital works assistance from the Federal and State Governments - subject to meeting their strict criteria (i.e MBC received $500K from the State Government only to assist with the $6 million Science Centre)
The reliance on fundraising is extremely important as all other methods of funding capital works are extremely limited. The amount of borrowing capacity is obviously limited as the College needs to ensure it can continue to meet its debt servicing and other financial commitments without the necessity to raise revenue (i.e increase school fees). Waiting for funds to build up over a number of years in order to fund capital works from reserves can result in the school becoming less competitive and there is limited assistance from the State Government and MBC is not eligible for Federal Government capital assistance.
Question: Where does the income from school fees go?
Answer: The graphs below provide an indication of the breakup of the budgeted income and expenses for the previous operating (calendar) year.
Question: Does Moreton Bay College receive other funding from the Government?
Answer: Yes. Funding is received from the Government on an annual basis to assist with the recurrent school operation. This funding is largely determined following a calculation of the Socio Economic Status (SES) of the College community based on the postcodes of our current parents’ home addresses and the various “needs” of the student population. The new “Gonski” model has varied the parameters of this however the impact on MBC has been minimal.
Currently, the Federal Government provides around 25% of our total income and the State Government provides around 10%. The majority of College revenue is received by way of school fees charged to our current parent community. Government schools receive significantly higher funding on a per capita basis than total government funding received by MBC.
The school fees charged each year make up the shortfall in government funding that is needed to educate a student at MBC and provide the quality curricular and co-curricular programs.
Question: Will government funding continue into the future? Are there implications under the Gonski review?
Answer: The Federal Government has committed to providing funding based on the current model to the end of 2017. There is some risk though that funding may reduce in real terms after that date.
Having a culture of philanthropy within the College and generating additional private sources of income with the fundraising assistance of the P&F Association and other revenue raising activities may be vital to assist with any shortfall resulting from a reduction in future Government funding.