Charters Get Smart to Close Funding Gap (DE)

September 20, 2010

The cost to outfit one student at Prestige Academy charter school with a uniform and gym clothes for a school year: $105.

For some of the families of students at the all-boys school in Wilmington, that is a hardship. About 70 percent of the children qualify for federal free or reduced-price lunches, signaling that they come from families low on resources. The public charter school’s uniform – khaki pants, tie, button-down shirt, belt and dress shoes – is mandatory.

To help meet student needs, school officials recently began a fundraising campaign that allows donors to sponsor students.

In Delaware, charter schools receive state money on a per-student basis, but they aren’t eligible for capital p roject matches or extra funding for special education students. Many of the state’s 19 charters target at-risk students, who often come from low-income families.

The challenge has prompted Prestige and other charter schools to look at creative ways to raise money.

“I think that when it comes to giving, in general, people want to know their hard-earned money will be put to use,” said Jack Perry, the executive director of Prestige. “This really makes it clear what the money is going to be used for. They are not just giving to some lofty idea.”

Unlike many charities that solicit donors to sponsor children internationally, the school can’t share with donors exactly to whom the uniforms go for privacy reasons, but keeping donors connected to the mission of a fundraising drive is crucial to the effort, said Danielle Sullivan, development consultant at Prestige.

“We don’t do a lot of big benefit, gala-type of fundraisers,” she said. “We can’t afford it. Instead, we bring folks to us.

According to a 2010 report from Ball State University, on average, charter schools get about $9,990 per student from the state, while traditional district schools get $13,655 per student.

There have been several attempts by advocacy groups, including the Delaware Charter School Network, to get more funding for charter schools, but they’ve failed to get enough traction with legislators. A 2008 report from the governor-appointed Leadership for Education Achievement in Delaware committee called for the state to help charter schools with capital building funding.

"All the money you get from state and local is not enough," said Jack Wintermantel, the superintendent of Delaware Military Acad emy charter school near Newport.

The gap in state funding makes fundraising a critical component of charter school operations, but it’s not something that makes up a large portion of the overall school budget, school leaders say.

The Charter School of Wilmington has three large fundraising events: an annual fund drive, athletic booster and a gala night. Last year, those events raised a combined $146,000, said Walt Warner, headmaster of the school. The money pays for things such as educational trips, extracurricular activities and equipment, but donations account for only about 1 percent of the school’s budget, he said. There’s a goal to increase it to about 5 percent, but that’s been difficult in the current economic climate.

"It’s been a very small percentage of the budget," he said, adding that there’s a common misconception that sponsorships and donations pay for a large part of the school’s operations.

While it’s common for any school to seek support from parent-teacher organizations to raise money for playground equipment or sports teams, charter schools have an extra incentive to have organized fundraising efforts. Charter schools do not have the authority to levy taxes or use municipal bonds to pay for buildings or large capital expenses.

The Delaware Military Academy has been in its current Middleboro Road location since 2003, but it was renting its school building until two years ago. Without backing from the state to buy it with a municipal bond, which is what regular school districts can get, the charter school raised its own money and proved itself financially solvent enough to get financing to make the more-than-$12 million purchase, Wintermantel said. The school also recently bought land surrounding the building in the hope of expanding athletic fields and parking, he said. Donations will drive much of this.

At the MOT Charter School in Middletown, parents organized their second 5K race event Saturday to raise money for the school. Last year they raised about $5,000. This year the goal’s been doubled, and the event grew to include other events, such as games and pie-throwing. Parents planned the event.

"We are trying to show the kids if you work hard, you can raise the money," said Sue Symes, the parent of 12-year-old triplets and a 9-year-old.

Raising money for the project — a new gym, library and two classrooms — has been going on for a few years. Finding financing for the project took time, but it looks like it might move forward this year, said Linda Jennings, head of school at MOT Charter.

"Our [parent-teacher organization] is amazing," Jennings said. "They are really active and motivated. They add a lot of life to the school."