The Bold Action Campaign built extraordinary facilities and has deepened our endowment growth, but our School still relies on additional funding. MICDS operates as a nonprofit entity, and operating revenue is derived from several sources. While the majority (78%) comes from tuition income, the MICDS Fund comprises a crucial 5% of the School’s operating revenue.
The School’s enrollment level and tuition rate drive tuition revenue, which comprises 78% of total revenue. MICDS has historically run at or near enrollment capacity with modest tuition increases each year. Managing tuition cost is a balancing act between ensuring adequate revenue, remaining competitive and ensuring affordability to support the School’s Mission.
Endowment, Gifts and Trusts
Approximately 12% of MICDS’ operating revenue is obtained from endowment, gift and trust distributions. Endowments and trusts are established from generous gifts that ensure the sustainability of our School for future generations. These gifts are invested to ensure future income, and 4.5% of average historical earnings is disbursed each year for spending purposes. Targeted investments allow the endowment balance to not be depleted as funds are withdrawn.
Depending on the rules outlined for each gift, the distribution of funds raised may be restricted to designated programs. Most of the dollars raised through Bold Action were restricted gifts, helping build the STEM facility, natatorium and stadiums, for example. While all gifts are appreciated and integral to the success of the School, unrestricted gifts allow flexibility for the School to fund programs based on need.