In the nonprofit sector, adopting strategies from the for-profit world can lead to improvements in efficiency, effectiveness, and overall impact. This is particularly true in education, where understanding financial and operational data is critical for informed decision-making and long-term sustainability. At Prizmah, we have developed an approach to achieving financial and operational excellence through data-driven insights obtained from financial and operational benchmarking.
The Role of Financial and Operational Benchmarking
Benchmarking, a practice widely used in the corporate sector, involves comparing an organization’s performance metrics with those of peers or industry standards. This process helps identify areas of strength and opportunities for improvement. In the context of Jewish day schools and yeshivas, benchmarking provides schools with a clearer picture of their financial health, enrollment health and operational efficiency, fostering a culture of continuous improvement, strategic growth, and educational excellence.
Fostering Collaboration Through Community Benchmarking
At Prizmah, we are committed to fostering collaboration and continuous improvement among Jewish day schools through our community benchmarking initiatives. These projects provide school and communal leaders with valuable insights into their school’s financial and operational health, allowing them to make data-driven decisions that enhance their practices.
We facilitate an annual benchmarking project for Jewish day schools, with 122 schools participating last year. Using the National Association of Independent Schools’ Data and Analysis for School Leadership (DASL) tool, participating schools can generate custom reports to compare their performance with peer schools. In partnership with various federations, we have launched community benchmarking cohorts in Toronto, Montreal, and Boston, providing a landscape view of financial and operational benchmarks with national comparisons.
Community Benchmarking Cohorts
We have partnered with several community federations to facilitate benchmarking cohorts that help Jewish day schools analyze their financial and operational data. In collaboration with the UJA Federation of Greater Toronto, Combined Jewish Philanthropies of Greater Boston, and Federation CJA in Montreal, we work with cohorts of schools in their communities to collect and analyze key metrics such as tuition revenue, staffing levels, and cost per student. These efforts provide school and community leaders with valuable insights, providing performance benchmarks to similar schools locally, regionally, and nationally. Through these partnerships, school leaders gain a broader perspective on their operations, enabling them to make informed decisions and foster greater transparency within their communities.
Building Community and Trust Through Transparency
These initiatives help foster a sense of community among participating schools and provide federations with a clearer understanding of the day school landscape. By collaborating and sharing data, schools gain valuable insights into their challenges and opportunities, fostering transparency and building trust.
These benchmarking cohorts develop collective knowledge within their communities. When federations have a comprehensive view of the financial and operational health of their schools, they are better equipped to address common challenges and celebrate successes. Overall, these initiatives highlight the importance of community and organizational collaboration in achieving shared goals and driving systemic change.
Real-World Impact of Data-Driven Decisions
Two recent examples of how schools in these communities are using data to inform their strategic decisions come to mind. By leveraging comparative data, a school leader effectively communicated their financial needs to potential funders. They highlighted specific areas where they could grow, which helped them secure additional funding to support their programs and initiatives. This data-driven narrative demonstrated the school’s commitment to improvement and clearly identified the financial gaps that needed to be addressed. Funders appreciated this evidence-based approach, valuing the transparency and strategic planning behind the funding requests.
A board chair at a different school was surprised to learn about the significant year-over-year escalation in their school’s operational costs. This newfound awareness prompted a closer examination of the school’s financial practices. By analyzing the trends and identifying the primary cost drivers, the school’s leadership implemented targeted measures to control expenses. As a result, the school improved its financial health and enhanced its operational efficiency, setting a strong foundation for sustainable growth.
Embracing Collaboration
Part of benchmarking is the sharing of individual school data. For some schools, there may be concerns about revealing metrics or exposing their financial information. When a community of schools comes together in a spirit of openness, it fosters a sense of trust and mutual support and strengthens the whole community of schools. When all schools agree to share their data, every school contributes to the collective pool of knowledge, which benefits everyone involved. This collaborative spirit allows schools to focus on shared goals—improving the quality of Jewish education and ensuring financial sustainability for their school.
Organizational Partners
In addition to fostering communal collaboration among schools, these benchmarking initiatives also involve significant organizational collaboration. Prizmah collaborates with a range of organizations, including the National Association of Independent Schools (NAIS), various federations, and each school that participates in DASL. This includes both schools that are part of a community cohort and those participating independently. By working closely with these organizations, Prizmah ensures that our benchmarking initiatives are robust, comprehensive, and aligned with best practices.
Telling the Story of Jewish Day Schools
Data used as part of this data collection project is used to tell the story of the changing landscape of Jewish day schools and yeshivas nationally. Working together, Prizmah and schools can present a united front to funders and policymakers.
Building a Stronger Jewish Day School Ecosystem
Financial and operational benchmarking is a powerful opportunity for communal collaboration. By participating in these initiatives, Jewish day schools and yeshivas enhance their financial and operational practices while contributing to a culture of openness, trust, and mutual support.
Through the collective efforts of schools, Prizmah, and our organizational partners, we are building a stronger, more resilient Jewish educational system. Together, we ensure that Jewish day schools thrive, providing exceptional education and maintaining financial health.