Yeshiva Sanity: Imitation is the Sincerest Form of Flattery

Friday, August 10, 2012

Imitation is the Sincerest Form of Flattery

We previously discussed a He'atid clone in Silver Spring which unfortunately will not be opening this coming fall because of insufficient enrollment, according to their website.

However, there is one looking to open next fall in the 5 towns which is generating a huge buzz in that community.

Best of luck to them! Hopefully they can endure all the negativity that is sure to be thrust their way.

[Update: there's a pretty serious group trying to start up another He'atid clone in New Rochelle, NY. Good luck to them as well!]

Tiferet Parlor Meeting Slide

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outraged · 659 weeks ago

outraged is yeshiva dad at his best. Everyone realized the fleecing going on with heatid and their finances pitched at the parlor meeting was bogus, at best. Now we are going to divert the attention to more programs popping up...some of which failed already.

Am I the only one outraged that multiple people lied to my face at parlor meetings and via emails. They had no problem cashing all our checks...but now, once they are cashed...we are not self sustaining we need more than 250k and we want more money from you. I will not ask for my check back, but this may be last time I donate on emotions and non-educators telling me how to run a school and how much the program costs.
What didn't I get lied to about? Start up costs, tuition being really 9k without outside funds, we will be self sustained if u help is reach 250k?

What can I expect from the school of their board lies to our face?

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Just wondering · 659 weeks ago

The presentation from Tiferet mentions that they are using the Yeshivat Heatid financial model. This combined with the recent solicitation from Heatid raise a number of questions. Given that Heatid is soliciting funds from the community it much would be nice if someone could provide us with some answers.

For example -

- How does Heatid calculate the $600,000 in savings they've already achieved for all of us? This sum would imply a savings of roughly $5,500 per child but as is clear from the tuition schedules referenced on this blog there isn't that much daylight between Heatid tuition and the tuition at the other local schools. This doesn't even consider that there are other cheaper options (e.g., JFS, Lubavitch) available to Bergen County families. So where exactly is the savings coming from?
- Does this savings include the money that was solicited from parents before the school opened up? If they are unable to raise additional funds from the community will their parents be required to make similar "donations" next year as well?
- Why is this a savings to the community? I can understand why it benefit the small number of families that are realizing a tuition break but how is this a benefit for the community? Have these families dedicated their savings to invest back in other community institutions?
- What exactly did Heatid do with the $1,300,000 they've already raised? How could a school spend that much money in less than a year before it even opened its doors and educated a single student? If it hasn't spent all of this money why the need for additional aggressive solicitation?
- Why does the Heatid leadership (as represented by the person who commented on a prior post) somehow believe that startup costs are not real costs? Have they come up with a new definition of expenses that doesn't include capital to start a new enterprise and amortize these costs over some period? If they don't understand basic accounting, why should anyone entrust additional funds to their care?
- The Tiferet presentation indicates that the model includes the requirement parents volunteer. Is this built into the Heatid model as well? What if a parent decide not to volunteer, does their tuition go up?

These are just a few questions that many of us being solicited for funds would like answered before we donate. Since the school will eventually need to make their financial statements public when they file 990s why not come clean now rather than continuing to hide their financial model?

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con artist · 659 weeks ago

990s wont tell us everything. They are spending recklessly. How much could rent, desks and cubbies for a preschool cost? They have 4 out of classroom people on either w2 or 1099 payroll for a while now. Keep in mind they are renting yeshivat noam's preschool building!!! But for installing 30 or 40 Ethernet ports for our tech savvy 4 year old children and perhaps a fresh paint job...where did 1.3 million go that fresh fundraising is needed? Is the flattery yeshiva dad is talking about that other schools are going to follow the same model - tell people we are self sustaining for 9 or 10k, but really obtain charity under false pretence to subsidize the rest of tuition.

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not sustainable · 659 weeks ago

At least legacy schools admit tuition and education are costly and they are working diligently to keep costs stagnant or lower it a bit. That system is not sustainable long term...but raising 1 to 2 million a year to subsidize an entire school's tuition is also not sustainable .

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Sora · 659 weeks ago

i went to the parlor meetings. he'atid had to raise $250k from the general population in order to show Avi Chai and other foundations that there was interest so that those organizations would contribute money for start up costs. So clearly no one would have said that he'atid only needed $250k and then would be self sustaining. i saw he'atid's budget and i believe it was even publically stated that the break even point /self sustaining point does not come at year one - but there is a break even point - i believe in year 3 so it makes sense based on what hea'tid board members themselves actually stated that they are still fundraising. and who said that all of the $1.3 million has been spent - because an organization continously fundraises does not mean it has no money left.
Let me ask all the commentators above - if he'atid keeps tuition at what it is this year for the foreseeable future but decides to fundraise for a building (not have a building fund but go to outside sources) because the school has grown so much does that mean they have lied and that they are not self sustaining?

1 reply · active 659 weeks ago

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Guest · 659 weeks ago

Building capital is very different than operating expenses. At this rate he'atid may need a building for year 3

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Just wondering · 658 weeks ago

Sora if you have seen the budget can you answer the questions above? many people have said they have seen the budget but can't answer some basic questions. some people who have seen the budget have said it is quite unrealistic. i have heard that there were many assumptions that were made that have not proven out and expenses are running much higher than expected. when will heatid publish its financials to explain to people why it needs to raise more than 1.3 million and why they should donate?

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Sora · 658 weeks ago

If you want detailed answers, it probably makes sense for you to meet with the people who created the budget - so call the school and ask to speak with people on the Board. Most of the comments and answers on this blog relating to this subject have not been truthful (see the first comment from the person who says he was lied to and was told that the school only needed to raise $250k and then would have all the money it needs besides tuition) so I am not sure why you would want answers to come from random people writing here, as opposed to the people running the school.

My understanding from speaking with someone who is on the Board is that they are actually under budget for the year, so costs are not running higher than expected, but rather lower. He'atid needs to raise money because schools have start up costs. In addition, it is likely He'atid is continuously raising money because it is looking to the future when it will need a building.

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Puzzled · 658 weeks ago

Sora
It would be great if someone from the Board could explain here:
1 - What are the $1.5M in start-up costs? Are they truly start-up costs, or more of an operating subsidy b/c operating costs per student are far in excess of $9k?
2 - Whichever the answer is to the above, in what sense are they demonstrating an ability to run a low-expense school? Given that GD said all schools currently operate at about $9k at this grade level. (Alternative and less importantly, how have they saved the community $600k as claimed in the fundraising letter.)
I did ask a board member the first question, who said s/he had no idea.

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Sora · 658 weeks ago

Puzzled - yes - sure I am sure a Board member will get right on it - answering a random person's questions from a blog. come on. If you are a parent call the school and ask - my experience is that they havebeen open and honest with their parent body. If you are not a parent and want information before you donate, call and tell them that too. I really dont believe that you actually asked a board member this previously - but if you did, a simple response from you could have been - can you please find out and get back to me.

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Just wondering · 658 weeks ago

Sora, the school has used every communication vehicle known to man to communicate how wonderful they are. Why is it so hard to answer the questions above. The fancy videos are nice. Happy about a simple chart that shows where the 1.3m went to, what they will do with anything else they collected and how they calculated 600k in savings. They can feel free to communicate via facebook, twitter, youtube, I don't care. Why is it that this is so secret?

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Guest · 658 weeks ago

They skirt the line between barely telling the truth and flat out lying. They are super clever with their words and presentations. Each and every word they put out is calculated. It is sneaky.

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Sora · 658 weeks ago

they just sent out a brochure with their mailing which explains a lot of where the money went to. and they have communicated to the parents regarding budget and other information you are interested. why should they spend their time on a blog communicating it to you?

As for them barely telling the truth and flat out lying - are you a parent who has been in touch /are sending your child to the school? if so, and that is how you feel, pull your child out. if not, then why do you care? if you dont like that they asked you for money, dont give. i am assuming there are tons of organizations you dont give money to. I can't imagine your disgust is really because you feel for those parents who are sending their kids and really must have been duped. Perhaps there is another reason . . . the talk around town is that most people who name call - lying, sneaky - do so becuase they are threatened.

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Just wondering · 658 weeks ago

Sora, how did they compute $600,000 in savings this year?

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Sora · 658 weeks ago

call them and ask them - i am not He'atid - why are you asking me (or anyone else on this blog)

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Just wondering · 658 weeks ago

sorry Sora. i didn't mean to accuse you of being affiliated with heatid but you mention above that there was a lot of information in their brochure. i didn't see any of these questions addressed. thought maybe you had some insights but seems like you are in the dark like the rest of us.

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not sustainable · 658 weeks ago

Soda sounds like a he'atid board member trying to water down the anger throughout the community. Transparent and self sustainable are their two favorite mottos and both are obvious shams and lies.

When was the last local preschool opened in town in a rental and had over 1.3 in startup costs.

I know several experienced and established pre-k programs in town in nicer facilities for 6 to 8 k.

Can someone please explain to me how the community saved 600k. Sounds like it cost us money.

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