Breakthrough Revenue Strategies: How Auxiliary Programs Revitalized Breakwater School

In this episode, David Sullivan, Senior Advisor at the Summer Programs and Auxiliary Revenue Collaborative (SPARC) and former Head of School at Breakwater School in Portland, Maine, reveals how he transformed a $350,000 deficit into consistent surpluses.

Through innovative auxiliary revenue strategies and bold leadership, David shares actionable insights for independent schools looking to achieve financial sustainability and unlock new growth opportunities.

What You'll Learn:

• Leadership Change and Financial Opportunities: When David Sullivan took over as head of Breakwater School, he faced a $350,000 deficit on a $2.5 million budget. This challenge spurred him to innovate, leading to a strategic focus on auxiliary revenue that would ultimately transform the school’s financial health.
• Auxiliary Revenue as a Lifeline: Sullivan’s background in auxiliary programs and the school’s financial situation led him to develop innovative auxiliary revenue streams. Incorporating these streams with traditional fundraising and enrollment strategies provided financial stability for the school.
• Living Endowment Concept: A major donor advised Sullivan to view auxiliary programs as a living endowment. Instead of relying on large donations to build an endowment, generating consistent revenue through auxiliary programs provided a sustainable financial model.
• Initial Investments and Growth: Breakwater School initially faced financial losses in its auxiliary programs, but within two years, the programs began to break even and eventually grew by 20% annually. Over time, these programs contributed significantly to the school’s financial health, increasing their budget contribution from less than 3% to 25%.
• Community Integration and Public Purpose: By developing programs for public school students, Sullivan fostered community goodwill and enhanced the school’s public purpose. This integration helped rebrand the school as a community resource rather than an isolated institution.

Discussion Prompts:

• Mission Alignment: How can we ensure our auxiliary programs align with and enhance our school’s mission and educational philosophy, creating a cohesive and consistent experience for all students?
• Strategic Priorities: What strategic priorities should guide the development of our auxiliary programs, and how can they support our long-term goals and financial stability?
• Community Engagement: How can we use auxiliary programs to strengthen our ties with the local community and serve a broader population, enhancing our school’s public image and outreach?
• Leadership and Investment: What investments in leadership and resources are necessary to successfully expand and manage our auxiliary programs and ensure their positive contribution to our school’s overall operation?
• Operational Challenges: What operational changes or innovations are required to support the growth of our auxiliary programs, and how can we address potential challenges related to facilities, staffing, and communication?