winter 2007 - Concord Academy

most experienced teachers. Area public schools, with whichCA competes for faculty, offer teaching salaries that are 15 to 20percent higher. For example, the latest published figures from theMassachusetts Department of Education, which reflect 2004data, cite the average faculty salary at Concord-Carlisle RegionalHigh School at $63,035. In addition, many independent schoolswith which CA competes for students, such as Milton,Middlesex, and Phillips Academy Andover, offer substantiallyhigher teaching salaries, in addition to more faculty housing.A second key factor in retaining faculty is the school’s commitmentto professional development. The National Association ofIndependent Schools (NAIS) considers 1 percent of a school’soperating budget a “generous” allocation for professional development.CA spends, on average, $100,000 per year for professionaldevelopment. This amounts to only .625 of a percent ofthe school’s $16 million operating budget. An additional $4 millionin endowment income would increase professional developmentfunds by $200,000 per year, tripling CA’s currentallocation.Increasingly in recent years, housing has become a key issue inhiring and retaining the kinds of dedicated adults CA counts onyear after year. With housing prices in the Greater Boston areaamong the highest in the country, the school must continue towork hard to increase campus housing. Though these kinds ofcapital expenditures generally are not funded through endowmentincome, financial institutions that issue bonds or loans considerthe amount of CA’s unrestricted endowment a key factor indetermining the school’s strength and creditworthiness. Once acapital expenditure is made and the project complete, endowmentbecomes essential to sustaining that initiative by providingincome to repay debt and to fund maintenance of the new space.“We manage our endowment so that gifts benefit theschool for many gen er a tions. A $100,000 gift toendow ment supports a draw of $5,000 toward theannual budget (in current dollars). When that giftappreciates above the annual draw and aboveinflation, it continues to benefit the school’s peopleand programs — literally forever. Fifty years from nowthat gift could be worth more than $500,000.Judi SeldinChief Financial Officer”CONCORD ACADEMY MAGAZINE WINTER 2007Endowment: The Ultimate MultitaskerBy working on several fronts at the same time, endowment fundsbecome more than the sum of their dollars. Day to day, annualincome from endowment supports every interaction that occurson campus. Year to year, endowment growth allows the school toattract talent and grow in diversity, support innovative ideas byfaculty and administrators, and encourage people to keep envisioninga stronger, better CA. Decade by decade, endowmentinstills confidence in the school’s ability to stay vital for the greatgrandchildrenand great-great-grandchildren of today’s students.When Ellen Condliffe Lagemann ’63 assumed her role as presidentof the Board of Trustees last May, she knew one of her jobswould be to help the school increase its endowment in responseto the strategic plan. “If I care about CA, now is the time to doit—when it matters most,” said Lagemann. “Increasing endowmentis absolutely essential to CA’s future, because it is the onlyway to give the school the flexibility it needs to respond toopportunities when they arise and the stability it needs to sustainall its strengths for the long term.”40Tim Morse