Economic Issues of Student Achievement in a Non-Profit School Environment
The objective of this work in writing is to examine the economic issues of student achievement in a non-profit school environment. Toward this end, this work will examine literature across many areas of study to produce a synthesis of the information and knowledge available on the economic impacts of achievement among students who attend a non-profit school. Examined will be issues relating to accountability of non-profits, the accountability levels required for producing higher achievement among students and the availability of resources for student learning that results in achievement. Many non-profit schools are reported as failing. For example, it was reported that a non-profit school district in New Orleans intends to focus on failing New Orleans public schools and specifically that "A Recovery School District official plans to launch a nonprofit charter-management organization aimed at taking over and turning around failing schools." (RENEW Charter Management Organization, 2009) It is reported that this move is representative of "a national trend toward creating groups that can step in and transform failing campuses; if further signals the latest evolution in a survival-of-the-fittest school landscape in New Orleans." (RENEW Charter Management Organization, 2009) Ebrahim (2010) writes in the work entitled "The Many Faces of Nonprofit Accountability" that nonprofit leaders "face multiple and sometimes competing accountability demands: from numerous actors (upward, downward, internal) for varying purposes (financial, governance, performance, mission) and requiring differing levels of organizational response (compliance and strategic)."
I. Non-Profit Economic Outlook for 2011
According to the Business Monthly "Forecast 2011: Clouds Breaking, Business looking Up" the non-profit organization is facing another tough year financially. The nonprofit organization will be "forced to navigate challenging opposing forces. With slow overall economic growth and deeper cutbacks in government spending, general needs continue to grow in our communities. Anxiety and stress, increased housing and employment insecurity, and aging infrastructures leave our communities and our environment at risk - increasing the demand for the services provided by nonprofit organizations." (Business Monthly, 2011) The combination of "…decreased incomes, depleted investments and declining tax bases" are reported to be resulting in "less financial support from the individuals, foundations and governments that traditionally support nonprofit organizations." (Business Monthly, 2011) Difficult strategic decisions are required for the non-profit in regards to "…maximizing the likely decreases in resources and assets available. For some, this will be an opportunity for innovation; for others, it may mean further narrowing of missions, limiting services or reducing service provision/employment." (Business Monthly, 2011) It is reported as well that the "…new economic and political environments are far more volatile than they have been and will require organizations that can navigate change and better forecast future demand and support." (Business Monthly, 2011)
I. Overview of Non-Profit School Funding
The work entitled "2010 Charter School Facility Finance Landscape" that there are approximately 5,000 public schools "operating under charters, educating approximately 1.5 million children nationally." In addition, the report states that an ongoing problem for these schools is "lack of access to appropriate public facilities or to public funding…" (Educational Facilities Financing Center, 2010) Charter schools are different from traditional school districts in that Charter schools "do not have taxing authority and must rely on limited public capital funds and operating revenues to pay for their facilities." (Educational Facilities Financing Center, 2010) There has been significant expansion in the financing of charter schools over the last twenty years as the charter schools as support in the earlier phases came from "…nonprofit community development organizations with support from the philanthropic community and the U.S. Department of Education." (Educational Facilities Financing Center, 2010) However, there are presently more than 24 private nonprofit organizations that provide financing for the charter schools in the amount of $1.1 billion in direct financial support and another S369 million in the New Markets Tax Credit (NMTC) allocation. (Educational Facilities Financing Center, 2010, paraphrased) In the private sector, there are a reported 29 nonprofit organizations are stated to "provide significant facilities assistance to charter schools in the form of grants, loans, guarantees, real estate development and technical assistance." (Educational Facilities Financing Center, 2010) There are also seven foundations with commitments to facility financing "on a more localized basis, providing grants and program-related investments (PRIs) to help finance charter school facilities." (Educational Facilities Financing Center, 2010) In addition, "twenty nonprofit organizations provide financing for charter school facilities as part of their community development or charter support missions....
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