This is one of five case studies from the National Association of Independent Schools about schools that are making nontraditional funding models work for the benefit of low-income students. See the full set of case studies.
Profile: Thirty-two Catholic Cristo Rey schools, all independently owned and operated, serve 9,953 students in grades 9–12. Cristo Rey calls itself “the largest network of high schools in the United States whose enrollment is limited to low-income youth.” Students’ average family income is $35,000; 97 percent are students of color.
History: The Cristo Rey Network resulted from the vision of Father John P. Foley, a Jesuit priest from Chicago. In the mid-1990s, the Jesuits responded to a need to open a college preparatory high school to serve inner-city students from working-class Hispanic families.
To fund the school when typical tuition was unaffordable for families, Foley and his team developed an audacious business model: a Corporate Work Study Program through which students would help earn their own educational costs by working five days each month in entry-level jobs in professional settings, such as law firms, banks, and hospitals. He drew on the education traditions of the Jesuits and the resources of the Catholic Church to open the first Cristo Rey High School in Chicago in 1996.
Growth: In terms of both support and enrollment, the program was more successful than even its founders anticipated. To replicate Cristo Rey schools throughout the country, the Bill & Melinda Gates Foundation, along with venture philanthropists B.J. and Bebe Cassin, provided seed funding. Schools opened in Los Angeles, Portland, Denver, New York City, Washington, D.C., and other cities.
In 2012, the Walton Family Foundation announced its investment of $1.6 million in the Cristo Rey Network to onboard a school-growth team. The team’s goal was to accelerate the opening of new schools, primarily in states that have either school-related vouchers or tax credits. Focused on deepening impact and continued growth, in 2014, Cristo Rey announced its 2020 strategic plan to serve 14,000 students each year in 40 schools and have 20,000 alumni.
While in development, the bulk of each school’s operational budget comes from the local community. Before a school can open, community members must conduct a feasibility study to identify key resources. These include facilities, work-study partners, philanthropic supporters, and plans for governance and school leadership.
Financial Model: At full enrollment, each Cristo Rey school depends on contributions from individuals, corporations, and foundations; support from the greater Cristo Rey Network; and tuition, which generally provides less than 10 percent of the cost of educating a student. Depending on need, families pay $250 to $2,500 a year. No students are denied admission because they can’t afford to pay.
One of the schools’ largest sources of revenue comes from the 2,300 Corporate Partners nationwide that provide the foundation of the Corporate Work Study Program. Rather than being on employers’ payrolls, students are employees of the schools’ separately incorporated Corporate Work Study Programs, which act as “employee leasing agencies.” Sponsoring organizations pay monthly, quarterly, or annually for the students’ services; companies deduct the fees as business expenses, not charitable donations.
How One School’s Finances Work: Cristo Rey Atlanta Jesuit High School acquired its facilities as a gift from the Archdiocese of Atlanta and raised considerable capital and resources — buses, desks, books, computers, and office equipment — before opening in 2014. About 60 percent of annual operational costs come through the Corporate Work Study Program and 35 percent from fund-raising, according to Deacon William J. Garrett, president of Cristo Rey Atlanta. Family contributions cover just 5 percent of costs.
Strengths:
- A well-regarded parent organization. Individual schools build on the support of the larger Cristo Rey Network as well as its growing name recognition and reputation.
- A compelling mission. The schools admit students who typically have not had access to a quality education and equip them with rigorous, college preparatory courses in addition to work experience, character development, and instruction on social skills that benefit them for life. Students also become part of a growing alumni network.
- The Corporate Work Study Program, which provides both funding and relevant work experience.
Challenges:
- Logistics. Schools must work out transportation to and from students’ jobs and meet the bookkeeping and insurance requirements for students working at many different companies.
- Geographic limitations. Corporate partners are often unavailable in rural areas. •
- Pressure to raise money. “I spend maybe 75 percent of my personal time, a little more than average, working on development because if we aren’t successful in raising money, we don’t have a school,” said Garrett. Still, he sees only growth ahead, considering the sense of ownership both the community and the city of Atlanta have shown. “We are a relatively new school, and the fact that we have been able to do so much is a direct reflection of the generosity of our community.”
More information: www.cristoreynetwork.org