Wednesday, November 28, 2012

Think Twice Before Making Donations To Schools

The present atmosphere of admissions to educational institutions is such that one may have to think twice before having children. The increasing lust for convent education and the ever-increasing fees of these institutions throw a great burden on the parents of middle=income families thereby making the situation scary. When it gets combined with the attitudes of some of those affluent classes of people who are ready to throw away any amount of money to get a seat for their wardens, the things are going from bad to worst.


Gone have the days when people used to get a quality education in the municipal or government-run schools and some private institutions. Now our people have become crazy and exhibitionist. They think of their status and prestige and don't bother throwing away money. This mentality of our people is one of the reasons for all this present state of the economic crisis that we are facing and unable to come out of it.


I don't think the necessity for such an extravaganza.

Is there any lack of teaching skills in our society?

Or, the lack of educational schools and colleges in our country?

Why such mad rush and inflated demand for convent education?

Is there more quality in them than our ordinary educational institutions?

Where is the need for going on pushing their fee structures to the sky-heights?


Let us think reasonably. Assume you are establishing a convent school with education from LKG to Class V. What you want is 7 rooms for teaching, one room for the Principal, one room for an office, and one more room for teachers to take lunch or spend leisure hours in between their turns. Besides these, we need the required furniture for these rooms like student desks, chairs, and tables.  Let us assume that the cost of furniture and other expenditure incurred for registration and obtaining the permit for running the school are a one-time expenditures that shall be recovered in a long run. Then, there is the monthly rent say 25000/-, salaries total of 50000/- roughly (for total 10 persons) including principal, and other electricity sanitation, etc. say 5000/-?- Thus the total monthly expense will come to around 80,000/- only.

Now, if there are 7 classes and 40 students in each class, and if you charge a monthly fee of Rs.300/- per student, the total fee receipts will be 84,000/- (280 X 300 = 84,000).

So, all your expenses can be met with that fees only.

Now, you can charge slightly higher fees for the higher classes which will be your sole income. It will not burden the parents much.


From the above calculation, you can clearly see that there is no loss even if you are charging lower fees. The reimbursement of your one-time capital expenditure and other time-to-time expenses can also be recovered very easily by slightly adjusting the fee structure.

So, where is the need to pay huge amounts of fees and the need for larger donations? Isn't it simply an extravaganza?


The above is merely an example to show how you can calculate things and make decisions.


You can calculate in your own way and act according to your prudence. Any suggestions and comments are always welcome.

So, you better think twice or even thrice before making unnecessary large sums to your schools and colleges. It will only result in inflation of things in the long run.