BA RGI Collateral

Be rwick Academy Investing in Excellence

RGI

Berwick Academy Mission virtue and useful knowledge among the

Berwick Academy, founded in 1791, is a Pre-kindergarten through Post-graduate college-preparatory

rising generations. As one school with three divisions, Berwick develops balanced leadday school dedicated to promoting

ers through personal relationships that foster confidence and achievement. By engaging in a program distinguished by academic challenge, creative expression and performance, innovative technology, ethical sportsmanship, wellness, and a commitment to the common good, Berwick graduates become resilient citizens by living our core values of balance, engagement, excellence, and integrity.

[Welcome Letter Outline]

We have a transformational, capitally efficient plan that will make dramatic improvement at Berwick: Over the past two years, we have developed a plan that will allow Berwick to become: • More financially sustainable • More accessible to families from a variety of financial circumstances • Better positioned to support dedicated teachers • More attractive to potential applicants

academics

“The at Berwick Academy have made me a more refined person who can structure and organize complex ideas, and with those ideas realize more about my world.

Because of this, I am a confident, curious person who is always seeking new knowledge, and that knowledge makes a smarter, happier world.”

- Eric Rawn ‘16

Investing in O ur Most Important Asset The Case for Faculty Compensation Berwick Academy’s greatest strength is the relationships forged between students and teachers, and the vast majority of our teachers are exceptional. However, faculty demographics suggest that significant numbers of teachers will retire in the next ten years. In the past, we have relied on tuition remission and geography to drive hiring success in the local area. Going forward, these tools will not be sufficient to elevate the level of our faculty on a national level. Consequently, we will improve salary levels and benefit programs to the mean levels of our benchmark group.

Competitive salary and benefits will ensure our ability to attract and retain the best talent from across the country for our students. Continued emphasis on evaluations, professional development, and making diversity a priority in hiring will complement our increased level of investment in faculty compensation.

faculty

“The at Berwick has had an amazing impact on my experience during my three years here. My art teacher, Mrs. Wildnauer, in particular, has been a wonderful mentor and teacher, and I value my relationship with her immensely. This relationship with Mrs. Wildnauer along with my other teachers, has been an incredibly positive influence on my academic, social, and artistic life here at BA.” - Abby Scanlon ‘12

Investing in the Best and Brightest The Case for Financial Aid Each year, over $2.6 million dollars out of our $13.5 million operating budget goes towards supporting the best students in the Seacoast regardless of their ability to pay tuition. Increasing support for financial aid will also be essential in meeting the various student diversity goals we have as well. The budget for this is financed primarily from unrestricted funds and tuition discounting. Financial aid is a vital tool for us to be able to maintain and improve the quality of our student body.

financial aid

“Without , I would not have been able to attend Berwick and receive such a high quality education. Today, this generosity continues to inspire me as I advocate for the educational rights of students with disabilities and happily represent pro bono clients.�

- Lillian Glidden Wong ‘01

Investing in Our Facility The Case for Campus Enhancements The campus is one of our greatest assets. While it presently serves our faculty and student body well, a number of improvements will be required and undertaken over the next ten years. We will construct a modern Performing Arts Center that will accommodate a desired high school enrollment of 325-375 and meet the needs of our sophisticated Arts program. When the Upper School does grow, we will renovate the inside of Fogg and/or re-purpose some of our existing spaces across campus. We know that the needs of our Office of Advancement will continue to expand, and we will renovate Oakes House to address Advancement space requirements and/or the future of our employee day care. Finally, the curb appeal of our beautiful campus trails our competitors, and we want to build our image as a source of pride to the local community. Therefore, we will complete the master landscaping plan that has been put in place for the major entrances of the school. The impact of these changes cannot be overstated from an enrollment and community morale perspective.

$25,000-$50,000

$50,000

$100,000-$200,000

Investing in Operational Excellence The case for financial durability Berwick’s past financial model of relying on high market investment returns and endowment draws is unsustainable in the long-term. It is fair to say that in our current financial model we are depleting vital resources that ensure the high caliber of Berwick’s faculty and programs at the expense of future generations. The need to embark on a major fundraising effort will improve our net endowment to make its financial model more sustainable.

MSP Benchmark Spending Rate Analysis

Summary Details

Current Financial Model Scenario I (Improvements without Fundraising) Incremental Annual Fund Increase 5% Incremental Salary Pool Increase Incremental Campus Scenario I (Improvements without Investment Fundraising) Unrestricted Draw Fund Increase Incremental Annual ServiceSalary detailsPool Increase 5% Debt Incremental Total Cash &Campus Investments @ June 30 Incremental Investment Unrestricted Draw Debt ServiceInvestments details Marketable - Beginning Balance Total Investments&@restricted) June 30 less Cash draw &(unrestricted add operating OPEX surplus 3.72% Marketable add investment return - Beginning Balance Investments Ending Balance less draw (unrestricted & restricted) add operating OPEX surplus 3.72% add investment return Ending Balance Scenario II (Treading Water) Incremental Annual Fund Increase 3% Incremental Salary Pool Increase Incremental Campus Investment Scenario II (Treading Water) UnrestrictedAnnual Draw Fund Increase Incremental Debt ServiceSalary detailsPool Increase 3% Incremental Total Cash &Campus Investments @ June 30 Incremental Investment Unrestricted Draw Marketable - Beginning Balance Debt ServiceInvestments details less Cash draw &(unrestricted Total Investments&@restricted) June 30 add operating OPEX surplus 3.72% Marketable add investment return - Beginning Balance Investments Ending Balance less draw (unrestricted & restricted) add operating OPEX surplus 3.72% add investment return Ending Balance

FY 2013

FY 2014

$ 100,000 $ 314,628 FY 2013 $ 150,000 $ 433,889 100,000 only $ Interest314,628 $ 14,615,193 150,000 $ 433,889 only $ Interest 14,650,000 14,615,193 $ (689,032) $ 9,245 $ 544,980 14,650,000 $ 14,515,193 (689,032) $ 9,245 $ 544,980 $ 14,515,193

$ $ 314,869 FY 2014 $ 150,000 $ 463,889 only $ Interest314,869 $ 14,417,565 150,000 $ 463,889 only $ Interest 14,515,193 14,417,565 $ (744,642) $ 7,049 $ 539,965 14,515,193 $ 14,317,565 (744,642) $ 7,049 $ 539,965 $ 14,317,565

FY 2013 Scenario IIFY 2014 $ 100,000 $ 314,628 FY 2013 $ 283,889 $ 100,000 only $ Interest314,628 14,765,193 $ $ 283,889 $ Interest 14,650,000 only (539,032) $ 14,765,193 $ 9,245 544,980 $ 14,650,000 14,665,193 $ (539,032) $ 9,245 $ 544,980 $ 14,665,193

$ $ 188,921 FY 2014 $ 283,889 $ only $ Interest188,921 14,865,686 $ $ 283,889 $ Interest 14,665,193 only (564,642) $ 14,865,686 $ 119,591 545,545 $ 14,665,193 14,765,686 $ (564,642) $ 119,591 $ 545,545 $ 14,765,686

FY 2015

FY 2016

$ $ $ 287,829 $ FY 2015 $ 100,000 $ $ 395,000 $ year) $ P&I (half287,829 $ $ 14,269,769 100,000 $ $ 395,000 $ year) $ P&I (half 14,317,565 $ 14,269,769 $ (681,756) $ $ 1,346 $ $ 532,613 $ 14,317,565 $ 14,169,769 (681,756) $ $ 1,346 $ $ 532,613 $ $ 14,169,769 $ FY 2015

333,826 FY 2016 100,000 590,000 P&I333,826 13,921,552 100,000 590,000 P&I 14,169,769 13,921,552 (883,179) 7,847 527,115 14,169,769 13,821,552 (883,179) 7,847 527,115 13,821,552

FY 2017 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

FY 2016

$ $ $ 191,488 $ FY 2015 $ $ 200,000 $ $ year) $ P&I (half191,488 $ 15,075,008 $ $ $ 200,000 $ $ P&I (half 14,765,686 $ year) (486,756) $ $ 15,075,008 $ 146,794 $ 549,284 $ $ 14,765,686 14,975,008 $ (486,756) $ $ 146,794 $ $ 549,284 $ $ 14,975,008 $

228,532 FY 2016 150,000 P&I228,532 15,204,006 150,000 14,975,008 P&I (443,170) 15,204,006 15,097 557,070 14,975,008 15,104,006 (443,170) 15,097 557,070 15,104,006

349,636 FY 2017 100,000 660,000 P&I349,636 13,485,741 100,000 660,000 P&I 13,821,552 13,485,741 (960,051) 10,078 514,162 13,821,552 13,385,741 (960,051) 10,078 514,162 13,385,741 FY 2017

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

236,256 FY 2017 90,000 P&I236,256 15,378,162 90,000 15,104,006 P&I (390,051) 15,378,162 2,338 561,869 15,104,006 15,278,162 (390,051) 2,338 561,869 15,278,162

$2.5 Million Impact of the Rising Generations Initiative $2.5 Million Impact of the Rising Generations Initiative The Status FY Quo 2013 is Unsustainable FY 2014 FY 2015 Scenario III (Improvements with Fundraising) Incremental Annual Fund Increase 5% Incremental Salary Pool Increase Scenario III (Improvements with Fundraising) Incremental Campus Investment Incremental Annual Fund Increase Unrestricted Draw 5% Incremental Salary Pool Increase Debt Service details Incremental Campus Investment Total Cash & Investments @ June 30 Unrestricted Draw Debt Service details Marketable Total Cash &Investments Investments- Beginning @ June 30Balance less draw (restricted only) add operating OPEX surplus Marketable Investments - Beginning Balance 4.23% add investment return less draw (restricted only) Ending Balance add operating OPEX surplus 4.23% add investment return Ending Balance

$ 600,000 FY 2013 $ 314,628 $ 150,000 $ 600,000 $ $ 314,628 Interest only $ 150,000 $ 14,865,193 $ Interest only $ 14,865,193 14,650,000 $ $ (255,143) $ 75,356 $ 14,650,000 $ 619,695 $ (255,143) $ 15,089,908 $ 75,356 $ 619,695 $ 15,089,908

$ 500,000 FY 2014 $ 314,869 $ 150,000 $ 500,000 $ $ 314,869 Interest only $ 150,000 $ 14,965,686 $ Interest only $ 14,965,686 15,089,908 $ $ (280,753) $ 43,160 $ 15,089,908 $ 638,303 $ (280,753) $ 15,490,618 $ 43,160 $ 638,303 $ 15,490,618

$ 500,000 FY 2015 $ 287,829 $ 100,000 $ 500,000 $ $ 287,829 P&I (half year) $ 100,000 $ 15,175,008 $ P&I (half year) $ 15,175,008 15,490,618 $ $ (286,756) $ 106,346 $ 15,490,618 $ 655,253 $ (286,756) $ 15,965,461 $ 106,346 $ 655,253 $ 15,965,461

FY 2016

FY 2017

$ 500,000 FY 2016 $ 333,826 $ 100,000 $ 500,000 $ $ 333,826 P&I $ 100,000 $ 15,304,006 $ P&I $ 15,304,006 15,965,461 $ $ (290,179) $ 167,847 $ 15,965,461 $ 675,339 $ (290,179) $ 16,518,468 $ 167,847 $ 675,339 $ 16,518,468

$ 500,000 FY 2017 $ 349,636 $ 100,000 $ 500,000 $ $ 349,636 P&I $ 100,000 $ 17,117,226 $ P&I $ 17,117,226 16,518,468 $ $ (300,051) $ 100,078 $ 16,518,468 $ 698,731 $ (300,051) $ 17,017,226 $ 100,078 $ 698,731 $ 17,017,226

Summary Model 4.xlsx

Version 4

Summary Model 4.xlsx

Version 4

Total Cash & Investments @ June 30

$

14,765,193

$

14,865,686 $

15,075,008

$

15,204,006

$

15,378,162

Marketable Investments - Beginning Balance less draw (unrestricted & restricted) add operating OPEX surplus 3.72% add investment return Ending Balance

$ $ $ $ $

14,650,000 (539,032) 9,245 544,980 14,665,193

$ $ $ $ $

14,665,193 (564,642) 119,591 545,545 14,765,686

14,765,686 (486,756) 146,794 549,284 14,975,008

$ $ $ $ $

14,975,008 (443,170) 15,097 557,070 15,104,006

$ $ $ $ $

15,104,006 (390,051) 2,338 561,869 15,278,162

$ $ $ $ $

Rising Generations Initiative Proposed Solution

$2.5 Million Impact of the Rising Generations Initiative FY 2013 Scenario III (Improvements with Fundraising) Incremental Annual Fund Increase 5% Incremental Salary Pool Increase Incremental Campus Investment Unrestricted Draw Debt Service details Total Cash & Investments @ June 30 Marketable Investments - Beginning Balance less draw (restricted only) add operating OPEX surplus 4.23% add investment return Ending Balance

FY 2014

FY 2015

FY 2016

$ 600,000 $ 314,628 $ 150,000 $ Interest only $ 14,865,193

$ 500,000 $ 500,000 $ 314,869 $ 287,829 $ 150,000 $ 100,000 $ $ Interest only P&I (half year) $ 14,965,686 $ 15,175,008

$ $ $ $

500,000 333,826 100,000 P&I $ 15,304,006

$ $ $ $

$ 14,650,000 $ (255,143) $ 75,356 $ 619,695 $ 15,089,908

$ 15,089,908 $ (280,753) $ 43,160 $ 638,303 $ 15,490,618

$ 15,965,461 $ (290,179) $ 167,847 $ 675,339 $ 16,518,468

$ 16,518,468 $ (300,051) $ 100,078 $ 698,731 $ 17,017,226

$ 15,490,618 $ (286,756) $ 106,346 $ 655,253 $ 15,965,461

Impact on the Endowment

Summary Model 4.xlsx

$17,000,000

$16,500,000

$16,000,000

$15,500,000

Scenario I Scenario II

$15,000,000

Scenario III

$14,500,000

$14,000,000

$13,500,000

FY 2013

FY 2014

FY 2015

FY 2016

500,000 349,636 100,000 P&I $ 17,117,226

Version 4

$17,500,000

$13,000,000

FY 2017

FY 2017

How Can You Help?

Text

Five Year Plan 2013 – 2017 Annual Fund

$3,750,000

Rising Generations Initiative

$2,500,000

Total

$6,250,000

Scale of Gifts for Rising Generations Initiative Number of Gifts 3 8 14 Many

community

Amount $250,000 $100,000 $50,000 <$50,000

Totaling $750,000 $800,000 $700,000 $250,000 $2,500,000

“The that the school has is very special. People understand that we all do it together. It really does . It’s as much your child’s school as it is your school as a parent. Getting involved is encouraged and you feel like with the teachers to make your child really get the best of what you’re paying for.”

take a village

part of a team

- Katie Clark, parent of Henry ‘21, Olivia ‘19, and Abigail ‘18

you’re