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Charter School Management Fees As the debate over the for-profit management company Victory Schools heats up, we reviewed the fees that some charter schools pay for management services, either to a for-profit Educational Management Organization (EMO) or to a non-profit Charter Management Organization (CMO). Using data available from the 2008-2009 fiscal audits, we found that 46 schools, or 60% percent of all charter schools, had some sort of CMO or EMO. Out of the 35 schools that actually paid for these services, the cost was, on average, $1,291, or 10 percent, per pupil. Charters with a CMO paid an average of $986, or 7 percent of per pupil funds. EMO schools paid an average of $2,146, or 17 percent of per pupil funds— a $1,160 difference. To be clear, since different services are provided by different management groups and CMOs might subsidize their services with philanthropy, the amounts paid don’t necessarily indicate over-charging for services. A full spreadsheet, with a breakdown of the schools, philanthropy numbers, and explanatory notes, is available here. While about 40 percent of all NYC charter schools are independent schools, the rest choose to enter into a contract with either an EMO or CMO for management services. Typically, these contracts stipulate the services that the management organization will provide in exchange for a fee, which is calculated as a percentage of the per-pupil funding that a school receives. A typical arrangement is that of Uncommon Schools Inc, which charges a new charter school 10% of their per-pupil funds. In exchange, they provide charter application and start-up help, as well as accountability, budgeting, back office, legal, fund development, marketing, and educational services once the school is up and running. Most schools that choose to have a management organization have a CMO. The rest, about 10 percent, use a for-profit company, generally Victory Schools, which dominates the market in New York City—operating 7 of t
**Note: Data from 2007-2008 990 Filings CMO Philanthropy Revenue Direct Public Support Program Service Revenue Achievement First Inc $ 8,659,707 $ 2,169,057 Beginning with Children Inc $ 1,664,421 Boys and Girls Harbor Inc $ 4,771,648 $ 934,087 Foundation for a Great Opportunity $ 1,523,853 Green Dot Educational Project $ 10,015,388 $ 183,367 Harlem Children's Zone Inc $ 52,766,996 Hyde Foundation $ 1,000 $ 435,236 KIPP New York Inc $ 3,310,123 Lighthouse Academies Inc $ 281,000 $ 3,824,403 Ross Institute Inc $ 1,594,802 $ 70,377 St. HOPE Academy $ - $ - Success Charter Network Inc $ 3,907,068 $ 306,172 Uncommon Schools Inc $ 6,940,853 $ 1,628,172 Village Academies Inc $ 10,358,632 Notes: Ascend Learning Inc *No filing for 2007-2008; founded in 2008 Believe High School Network Inc *No filing for 2007-2008; founded in 2009 The Explore Schools Inc *Couldn't find Public Prep *Couldn't find Expense Net Program Services Management and General Net $ 9,098,704 $ 575,161 $ 1,154,899 $ 1,844,461 $ 2,261,141 $ (2,441,181) $ 9,316,781 $ 2,577,858 $ (6,188,904) ? $ 451,000 n/a $ 41,689,006 $ 5,958,925 $ (1,002,975) $ 41,063,619 $ 8,492,826 $ 3,210,551 $ 202,845 $ 176,647 $ 56,744 $ 3,459,363 $ 42,755 $ (191,995) $ 4,496,501 $ 262,822 $ (653,920) $ 702,095 $ 510,949 $ 452,135 $ 188,915 $ (188,915) $ 2,609,641 $ 236,101 $ 1,367,498 $ 6,684,403 $ 531,918 $ 1,352,704 $ 2,307,412 $ 87,665 $ 7,963,555 Notes $13 mil in savings; $6,337,515 in gov't grants This is a larger foundation that supports Icahn charter schools, as well as various programs at Choate Rosemary Hall and the Center for Education Innovation $36,183,445 in Government Grants included in Net. This filing does probably not include expenses for NY Charter schol as it is for the 2007-2008 year. Net assets of $168 mil Note: this is for the Hyde Foundation, Inc based in Bath, ME. There are several other Hyde Foundations that may also be affiliated. Gives $2,938,802 to KIPP Academy, $760 to KIPP AMP, $893 to KIPP Infinity, and $168,760 to KIPP STAR Does not include $ for St. Hope Leadership, since the partnership was started in 2008. Also has approx. $1.5 million in savings.
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