Fund-raising

Starting a Private School: 2025 Guide

Introduction

Starting a private school has always been both ambitious and rewarding. In 2025, the path is clearer than ever—but it is also more complex, shaped by state regulations, rising tuition, community needs, and growing expectations for technology and inclusivity. For educators, entrepreneurs, or mission-driven leaders, starting a private school requires vision, meticulous planning, and a strong understanding of today’s educational landscape.

This guide offers a step-by-step look at how to start a private school in 2025, with insights into legal structures, accreditation, funding, tuition, staffing, and sustainability.

1. Clarify Your Mission and Model

The very first step in starting a private school is defining your mission. Are you launching a Montessori-inspired early childhood center, a college-preparatory high school, or a faith-based academy? A well-defined mission not only guides your curriculum and culture but also attracts families aligned with your vision.

Your educational model—whether traditional, project-based, or a micro-school approach—should be clear from the beginning. Schools that thrive are those that can articulate not just what they teach, but why they exist.

2. Legal Structure and Regulation

Starting a private school in the U.S. requires compliance with state—not federal—law. The U.S. Department of Education provides a useful overview of state regulations for private and home schools.

Key decisions include whether your school will operate as a nonprofit 501(c)(3), a for-profit corporation, or a limited liability company. Nonprofits benefit from tax-exempt

Private schools finance their operating expenses with tuition and fees. In other words, a school's income from tuition and fees offsets salaries, utilities, and all the other line items in a school's operating budget. Assuming that the admissions staff fill all the places and that the finance people have calculated projected income and expenses correctly, the school hopefully will break even at the end of the fiscal year. But remember that running any enterprise like a school also includes anticipating unexpected expenses. It's much the same situation that you and I find ourselves in when we suddenly have to pay for an unbudgeted expense. When that happens, you and I dip into our savings or charge the expense to our credit cards. That's fine for you and me; however, a private school doesn't operate that way. Instead, the treasurer maintains a rainy day fund or funds held in reserve. That's where endowing a teaching position comes in.

When you endow a teaching position at the private school that gave you such a great start, you express your confidence in the school and its mission. Your gift becomes an integral part of the school's branding. It helps to market the school and makes the school's balance sheet more stable. So let's explore how you can make this happen.

Giving during your lifetime

Discuss your idea with the school. Begin by speaking with the head of school, even if he or she is someone you do not know very well.

On March 27, President Trump signed into law the Coronavirus Aid, Relief, and Economic Stimulus Act of 2020 (the "CARES Act"). What is the Act's purpose and who does it benefit? According to The National Law Review,

"Title I of the CARES Act establishes, among other things, the Paycheck Protection Program (the "Paycheck Program") providing for up to $349,000,000,000 in forgivable loans to business concerns which are backed by the United States Small Business Administration (the "SBA"). The Paycheck Program is a short-term program for the "Covered Period" from February 15, 2020, until June 30, 2020, and loans are capped at the lesser of 2.5x a borrower’s LTM average monthly payroll or $10,000,000 per borrower."

Shortly after that, we began to hear stories about businesses that received loans and didn't appear on the surface as the kind of company that should receive a loan. According to the Washington-Post, " Some large hotel and restaurant chains received loans meant for Main Street businesses, prompting calls for changes." So did several private K-12 schools, according to the Los Angeles Times. The reason why the media criticizes private schools for accepting CARES loans seems to be the optics. As UCLA education professor Tyrone Howard said, “That’s not a good look... There’s just something that’s not equitable about that.” Apparently, the private schools are being criticized because they have endowments. The popular thinking seems to be that if

Raising money to benefit your private school is something as omnipresent as the four walls of your office. It's always there. It never goes away. Even schools which have large endowments seem to be constantly raising money. They can usually afford to hire Development Directors and can count on a couple of generous alumni to prime the pump for their multi-million dollars capital campaign. But what about small schools which desperately need money over and above what they can raise through tuition and fees? This article is for those schools. Hopefully, it will encourage you to see fundraising the way large schools do.

I have based these tips, suggestions, and strategies on over thirty-five years as a church musician. I was always raising money for one project or another. Finding the money to purchase a new pipe organ ($100,000) or raising money for a choir trip to England ($50,000) were major challenges for me back in the 80s. Now that I am semi-retired, I am the social media director and digital content creator for a small classical music radio station. The station's entire operating budget is listener-supported and raised through 2 major fund drives and constant messaging. We have been doing that for over 40 years. You've heard your local NPR station hold on-air fund drives, haven't you? That's what we do too. My point is that I understand the challenges which you are facing raising money for your small school.

The beginnings of modern philanthropy

You worked harder than you ever thought you possibly could. Your teachers demanded excellence. Your best. There were many times when you doubted your own ablities to make it. In the end they knew what they were doing. They also knew what you were acapable of. They helped lay that solid foundation for success in later life.

Your coaches refined your game. Showed your tips and tricks which made your more competitive. All without losing sight of good sportmanship and the benefits of regular exercise and physical activity.

But most importantly you graduated from your school with the best thing of all: a network of friends and classmates which will be yours for life.

Now it's time to consider how to give something back to that amazing school which nurtured you. Don't worry that your gift will be too small to matter. Give what you can.

Here are five ways in which you can support your school.

Annual Giving

Annual giving is the foundation of most private schools' fundraising efforts. Typically graduates, or alumni/alumnae as they are called, are encouraged to make a gift every year in support of their school. It's the same concept as the gift you make to support your public radio station or other charity. The gifts range from small amounts to $5,000, $10,000 or more depending on the graduate's financial strength and capabilities. Parents and grandparents are often asked to support the school in this way as well. This has a certain appeal