April 2025

As charter school leaders know well, managing your facility—whether you’re on the path to ownership or currently leasing—requires significant planning, collaboration, and foresight. In my work with schools across the country, I’ve seen how understanding your options, budgeting realistically, and negotiating strategically can transform your facility from a simple expense into a powerful investment in your school’s mission.

When Is Your School Ready for Property Ownership?

One of the most common questions I receive from school leaders is how to determine when they’re ready to transition from leasing to purchasing. Ideally, a school looking to purchase should demonstrate strong financial health, including:

Stable or increasing enrollment, preferably with a waitlist
Long-term charter renewal, indicating operational stability
Several years of positive cash flow
Adequate cash reserves for unforeseen expenses or building improvements

These factors signal to potential lenders that your school is a good investment risk. However, if your school doesn’t meet all these criteria, don’t be discouraged. There’s still a path to ownership—it may just look different or affect your timeline.

Funding Options Specifically for Charter Schools

Charter schools have access to several specialized funding options that can make facility ownership more accessible:

Facility grants and programs like Charter School Facility Grant Programs that reimburse lease costs for schools serving low-income students (California’s SB 740 is one example)
Federal charter school grant programs for replication or expansion
Charter school bonds, which offer low-cost financing options ideal for larger, more established schools
New Market Tax Credits that can reduce project costs by offering tax credits to investors (especially valuable for improvement or redevelopment projects)
Mission-aligned lenders offering predevelopment, acquisition, and construction loans specifically to schools
Philanthropic impact investors and foundations offering recoverable grants or low-interest loans
Tax-exempt lease-to-purchase financing, which allows charter schools to lease a facility with either an option to buy or a clear path to ownership (this is what Grow Schools offers to charter schools)

Understanding Project Timelines

It’s never too early to start planning for your facility needs. Different acquisition paths have varying timelines:

Purchasing your current facility: 4-6 months (most straightforward)
Locating and purchasing a new site: 12-18 months (depends on market inventory and whether conversion/improvements are needed)
Purchasing land and developing a new facility: 18-24 months (most complex)

Always budget more time than you think you’ll need. Construction timelines frequently slip, and approval processes vary significantly by location.

Regardless of which path you choose, the acquisition process typically includes these key milestones:

Strategic planning and feasibility to assess your facility needs and financing options
Site search and due diligence, including touring properties, submitting offers, and conducting site feasibility studies
Financing and entitlement periods, including financing applications, working with legal and real estate professionals, and navigating conditional use permit processes
Closing and implementation, including finalizing financing, securing permits, and planning for build-out

Balancing Current Needs with Future Growth

Perhaps the most delicate balancing act in facility planning is addressing your immediate space needs while planning for future growth.

Here’s what you’ll want to consider:

Right-size for today while planning for future expansion
Avoid overextending your budget chasing a dream campus
Look for properties that allow for phased growth, such as those with room for modular classrooms or phased construction
Consider excess land that could accommodate future development
Verify zoning and CUP flexibility to ensure the site allows for additional classrooms or facilities without significant reentitlement (which can be costly and time-consuming)
Evaluate shared-use possibilities or temporary structures that can provide interim growth options
Consider subleasing opportunities to supplement income while you grow into your space
Prioritize location and transportation logistics, ensuring good long-term traffic flow and adequate space for drop-off and pickup logistics

Moving Forward with Confidence

Every school’s facility journey is unique, with its own challenges and opportunities. Whether you’re considering a move from leasing to ownership or looking to make your current facility work harder for your educational mission, the key is thoughtful planning and strategic timing.

By understanding your financial position, researching your options, giving yourself ample time, and balancing current needs with future vision, you can transform your facility from one of your biggest expenses into one of your most valuable assets—one that actively advances your educational mission and creates opportunities for your students and staff for years to come.

About the Author

Maddy Marlton is the VP of Real Estate Acquisitions at Grow Schools, where she helps schools optimize their facility financing to support long-term growth and sustainability.

The Financial Survival Kit for Schools event brought together industry experts who shared valuable insights on budgeting practices, strategic staffing solutions, and facility financing strategies that support sustainable growth.

Key Speakers and Their Insights

The event featured four distinguished speakers, each bringing specialized expertise to address different aspects of school financial management:

Proven Budgeting Practices – Raj Thakkar

Raj Thakkar, Founder & CEO of Charter School Business Management, outlined 15 proven budgeting and forecasting practices for schools.

His presentation emphasized:

Creating clarity with a vision-driven budget that converts words into numbers
Separating operating budgets from capital budgets to avoid “hidden deficits”
Understanding and maximizing revenue streams
Setting appropriate contingency amounts
Focusing on enrollment and compensation as budget anchors
Using forecasting instead of continuously modifying working budgets

Strategic Staffing Solutions – Beth Jacobs

Beth Jacobs, Co-CEO of vChief, discussed how fractional leadership support can help schools navigate financial challenges while maintaining operational excellence.

She explained:

How fractional executive support offers expertise at a fraction of full-time costs
When schools should consider fractional support (during transitions, peak periods, or for specific projects)
The value fractional leaders bring through their experience with similar challenges

Beth noted that many charter schools are currently facing budget cliffs from ESSER fund expiration, teacher shortages, compliance pressures, and enrollment challenges. Fractional support can help schools maintain momentum while addressing these issues efficiently.

Maximizing Funding Streams – Stanton Jandrell

Stanton Jandrell, CEO of Fraxion, focused on spend management as a critical component of financial health.

His presentation revealed:

Unmanaged spending equals missed savings (potentially 10-20% of operational costs)
The direct link between effective spend management and stable cash flow
Tools for spend control, including procurement automation and budget tracking systems
Additional savings through strategies like punchout catalogs and group purchasing organizations (GPOs)

Jandrell emphasized that implementing strong spend management supports financial transparency, accountability, and sustainable growth, enabling schools to better serve students while building resilience against financial uncertainties.

Facility Refinancing as a Growth Strategy – Maddy Marlton

Maddy Marlton, VP of Real Estate Acquisitions at Grow Schools, explained how strategic facility refinancing can unlock capital for educational investments.

She covered:

Reasons to refinance: reducing interest rates, extending terms, converting short-term debt to long-term fixed-rate solutions
Timing considerations for refinancing, including school financial health and credit market trends
Various facility financing options like tax-exempt bonds, CDFI facility loans, and lease-to-own models
Grant and philanthropic funding sources for facilities, including charter school facility incentive grants

Marlton provided actionable steps for schools to take immediately, including reviewing current working capital positions, updating financial forecasts, and evaluating existing loan terms.

Want to hear more?

You can watch the live event on demand here.

As schools navigate increasingly complex financial landscapes, many leaders are searching for strategies to optimize their resources and create more stability. One powerful opportunity lies in refinancing your school building.

For schools that already own their facilities, strategic refinancing can unlock capital, reduce costs, and fund future growth. Having worked with numerous educational institutions on their facility financing, I’ve seen firsthand how the right refinancing approach can transform a school’s financial outlook and create new opportunities for educational excellence.

When Is the Right Time to Consider Refinancing?

Many school leaders struggle to identify the optimal moment to refinance. Based on my experience, there are three key indicators that suggest it might be time to explore your options:

1. Interest Rate Opportunities

If market interest rates have dropped since you secured your initial loan, refinancing could significantly reduce your overall costs. Even a small percentage decrease can translate to substantial savings over the life of your loan.

2. Improved Financial Standing

Has your school strengthened its credit profile since your original financing? Improvements in enrollment stability, operational efficiency, or fundraising success can qualify you for better interest rates or more favorable repayment options.

3. Upcoming Balloon Payments or Cash Flow Concerns

Many schools face looming balloon payments they aren’t positioned to handle, or struggle with debt obligations that create ongoing cash flow challenges. Refinancing can help restructure your debt into more manageable terms, allowing you to better align your financial obligations with your operational reality.

The Financial Benefits of Refinancing

When executed strategically, refinancing can deliver several valuable benefits that directly impact your school’s financial health and growth potential:

Lower Monthly Payments

By securing a lower interest rate, schools can reduce their monthly debt service, freeing up cash for educational programs, new hires, or facility improvements. This increased financial flexibility can be transformative, especially during periods of budgetary constraints.

Extended Loan Terms

Refinancing allows schools to potentially extend their loan repayment period, reducing monthly payments and creating more breathing room in operational budgets. While this may increase total interest paid over time, it can provide crucial short-term relief and stability.

Access to Additional Equity

If your facility has appreciated in value, refinancing can allow you to unlock some of that equity. This capital can fund renovations, new construction, or other facility improvements that enhance your educational environment and potentially increase enrollment appeal.

Preparing for Refinancing Success

When approaching lenders about refinancing options, preparation is key to securing the most favorable terms:

Get Your Financial House in Order

Lenders will scrutinize your financial readiness, focusing particularly on debt service coverage ratios and cash flow stability. Before initiating conversations, gather comprehensive documentation including:

Three years of audited financial statements
Current loan agreements
Projected budgets and cash flow statements
Enrollment trend data
Fundraising reports
Strategic plans outlining future growth and sustainability

This documentation helps demonstrate your school’s financial health and long-term viability.

Explore Multiple Options

Don’t limit yourself to a single financing source. Investigate various alternatives including:

Traditional bank loans
Bond financing (if your school qualifies)
Specialized education lenders like Grow Schools

Compare rates, loan terms, and flexibility across these options, keeping your primary objectives in mind—whether that’s reducing annual payments or accessing additional improvement funds.

Consider Professional Guidance

Working with a financial advisor who specializes in educational institutions can provide valuable expertise throughout this process. These professionals understand the unique challenges schools face and can help navigate complex financing decisions.

The Right Partner Makes the Difference

When considering refinancing, choosing the right financial partner is crucial. Look for organizations that understand the unique challenges and opportunities within the education sector. The most valuable partners will offer more than just financing—they’ll provide comprehensive support that respects your school’s mission while enhancing your financial stability.

As we enter budgeting season, now is an excellent time to evaluate your facility financing and consider whether refinancing might create new opportunities for your school. By understanding the indicators, benefits, and preparation needed for successful refinancing, you can make informed decisions that strengthen your school’s financial future and, ultimately, enhance your ability to serve students.

About the Author

Maddy Marlton is the VP of Real Estate Acquisitions at Grow Schools, where she helps schools optimize their facility financing to support long-term growth and sustainability.

As a charter school leader, your software choices aim to positively impact curriculum and instruction. But have you considered how the tools you choose impact your community’s satisfaction, engagement, and ultimately your retention rate?

With the increasing number of digital applications used in K-12 education, many schools are inadvertently creating a fragmented experience that hinders student success and frustrates families so much that it may impact your school’s enrollment.

One Challenge: Multiple Apps Cause Frustration

Many charter schools use a mix of different learning management systems, grade books, communication tools, and student information systems—sometimes 10 to 15 official apps or more. While each tool may serve a purpose, the sheer number of systems, often adopted organically over time, creates complexity. A new study has found your stakeholders are likely more frustrated with this approach than you may be aware of.

For Parents: Managing multiple logins and interfaces makes it difficult to stay informed about their child’s progress. 42% of parents rated their satisfaction at 5 out of 10 or lower when dealing with multiple educational apps. Parents were the least happy of all user types. When parents feel disconnected, their ability to support their child’s education diminishes. So does their enthusiasm for your school’s brand.

For Students: Switching between platforms creates confusion, missed assignments, and an inconsistent learning experience. Instead of focusing on learning, students spend valuable time navigating different systems, which can negatively impact performance and engagement, according to the study.

For Educators and Administrators: The study found teachers lose hours each week managing multiple platforms, duplicating data entry and troubleshooting tech issues instead of focusing on instruction. Administrators struggle to gain a clear, real-time view of student progress across disconnected systems. This inefficiency leads to lost time, lost learning, and, ultimately, lost trust.

The Solution: Consolidation for Higher Satisfaction

The key to improving satisfaction and streamlining operations is reducing the number of apps your school relies on. A single, integrated platform offers:

A unified experience for parents with one easy login for grades, assignments, and communication.
A seamless learning environment for students that eliminates confusion and ensures consistency.
Increased efficiency for teachers and administrators, reducing administrative burden and improving data accuracy.

One Way to Streamline Technology

The Edsby platform for K-12 is one example of a comprehensive all-in-one platform designed specifically for K-12 schools. Unlike piecemeal solutions, Edsby combines assessment and reporting, parent engagement, learning management, and analytics into one system, eliminating the need for multiple disconnected apps. Students, teachers, and parents have only one place to go for everything related to teaching and learning.

With systems like Edsby, charter schools can:

Improve parent satisfaction by providing a single, easy-to-use interface for all school interactions
Increase student engagement by ensuring a consistent and organized learning experience
Boost operational efficiency, allowing teachers and administrators to focus on what matters most: student success

The Bottom Line

Your school’s technology should enhance your stakeholders’ experience, not jeopardize it. By consolidating disparate apps into a single platform, you can improve parent and student satisfaction, drive better learning outcomes, and create a more engaged school community. An engaged school community stays a school community.

About the Author

John Myers, Cofounder and CEO of Edsby, a K-12 software that does everything. He is passionate about streamlining tech stacks for schools so they can better focus on what they do best—educating students.