Expert Tip of the Month

As you prepare for your summer board retreat, it’s essential to ground your conversations in data that reflects both your school’s current financial position and broader trends across the independent school sector. NBOA’s 2025 Financial State of the Industry report, which launched in March, is based on audited data from 748 schools and offers a clear view of where the sector stands - and where your school might want to focus.

While the report offers 17 in total, here are up to 12 key metrics to review and reflect on with your board (pick and choose):

1. Net Tuition and Fees per Student: Your school’s primary revenue stream. Median: $25,528. If this figure is flat or declining, it may signal issues with pricing strategy, aid policy, or enrollment mix.

2. Total Operating Expenses per Student: A critical cost benchmark. Median: $33,884. Rising faster than net tuition, this metric should be tracked closely to ensure sustainability.

3. The “Gap” per Student: The difference between net tuition and total expenses. Median: $6,968. This gap must be filled by philanthropy, endowment draw, or auxiliary income — and it’s growing.

4. Operating Margin: A measure of financial resilience. Median: 4.5%. A declining margin may indicate rising costs or stagnant revenue.

5. Financial Aid per Student: Reflects your school’s commitment to access and affordability. Median: $4,359. For boarding schools, it’s more than $12,000. Consider how this aligns with your mission and budget.

6.  Total Discount Rate: Includes financial aid and tuition remission. Median: 16.5%. A rising discount rate can erode net tuition and should be monitored carefully.

7. Expendable Financial Resources per Student: Represents funds available for strategic initiatives or emergencies. Median: $24,379. A key indicator of financial flexibility.

8. Total Net Assets per Student: A long-term measure of financial strength. Median: $68,019. Boarding schools tend to have significantly higher net assets.

9. Annual Giving per Student: A measure of community engagement and a key source of gap funding. Median: $1,332. Trends in giving can signal donor confidence and satisfaction.

10. Application Coverage: Admissions demand indicator. Median: 228% (2.28 applications per enrolled student). A strong ratio suggests healthy market interest.

11. Endowment per Student: A critical measure of long-term financial sustainability and institutional wealth. While not always liquid, endowment per student reflects a school’s ability to support its mission over time and weather economic shifts.

12. Plant Debt per Student: Reflects your school’s capital obligations. Median: $9,048. Consider how debt service impacts your operating budget and future flexibility.

Why This Matters for DASL and BIIS

These metrics aren’t just for internal reflection - they’re the foundation of your school’s benchmarking and strategic planning tools. By entering your data into NAIS’s DASL platform, you unlock a wealth of information there, and you unlock access to NBOA’s BIIS tools, including:

• The NBOA Financial Dashboard
• The Composite Financial Index (CFI) Calculator
• The NBOA Financial Sustainability Heat Map
• Business Office Compensation and Staffing Benchmarks

But the real value comes when your school’s data is fully entered into BIIS: You can create custom peer groups - locally, regionally, or nationally - to compare your school to others of similar size, structure, and scope. This allows you to move beyond national medians and benchmark against schools that truly reflect your context.

Whether you're evaluating tuition strategy, staffing models, or financial aid policies, custom benchmarking gives you the clarity and confidence to make data-informed decisions that align with your school’s mission and market.

Key Dates for DASL Data Entry

• Foundation Data (e.g., salaries, enrollment): Opened June 12, due October 18

• Financial Operations Data (e.g., audited financials): Opened June 12, due November 22 (Best to wait until audited financials are available)

Take Action

1. Review these 12 metrics with your leadership team

2. Prepare your data for DASL entry

3. Use both to guide a more informed, strategic board retreat - and to power your BIIS tools all year long

Log in here to DASL to begin data entry: https://dasl.nais.org 

Access to NBOA’s Financial State of the Industry Report: https://www.nboa.org/publications/research-reports