Annual Fund Stalls at 1% YOY Growth Rate
INDEX schools’ Annual Fund drives stalled in 2022-23, with a median growth rate of only 1%, a 7 percentage point reduction from the prior year. The two years of the pandemic (’20-’21 and ’21-’22) saw dramatic increases in the Annual Fund, with median increases of 7% and 8% respectively, but last year marks a significant departure from those high-growth years.
Annual Fund Average Parent Gift Size Shrinks
After growing 4% and 10% in ’20-’21 and ’21-’22 respectively, the median Average Parent Gift size actually decreased, although very slightly (-.1%), in 2022-23 – one reason for the overall stalling of Annual Fund growth.
Annual Fund Parent Participation Falls 2%
Parent participation in the Annual Fund fell 2% in 2022-23 to a median participation rate of 61%. This continues the downward trend begun in 2014-15, when the median parent participation rate stood at 72%.
Tuitions Increase 5.3%
The median 2023-24 tuition increase was 5.3%. The 2023-24 tuition increase marks the largest increase since the 2007 financial crisis.
Financial Aid Ratio Stays Stable at 17.5%
For the third year in a row, the average tuition discount (need-based awards, tuition remission, and no-need awards) held at 17.5% of gross tuition revenue. Could it be that the years of steadily increasing tuition discounting are over?