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Charter School Management Fees

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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

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									**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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