��������

Parents turn to private K-12 education for all kinds of reasons, from overall quality of curricula and individualized teaching strategies to location and religious affiliation. Now they may be adding another motivation to the list: overcrowded classrooms and public school bus rides just seem more dangerous in the age of coronavirus.

If you’re home-schooling your kids right now, the day they return to classes may seem like a distant dream. (How’s your blood pressure?) But September will come—with or without online classes. Chances are you’re making decisions right now that will affect at least a year of your child’s future. Chief among them may be how you will continue to finance your child’s private school education.

In 2020, the average cost of K-12 private school tuition reached $11,012. Depending on where you live and whether you have elementary-, middle-, or high school-age kids, your mileage may vary. But across the country, has been increasing steadily along with the rising cost of education. K-12 loans aren’t subsidized by the federal government like higher-education loans. Still, many parents clearly believe that private school education is worth the investment. The question moms and dads should be asking themselves is, “How can I be sure I’m investing wisely?”

School Stability

The global coronavirus pandemic has injected uncertainty into every sector of the economy. That’s true at the micro-level, as many parents join the fast-expanding ranks of . It’s also true for private schools,

According to , "School choice is a term for K–12 public education options in the United States, describing a wide array of programs offering students and their families alternatives to publicly provided schools, to which the location of their family residence generally assigns students." Vouchers have been in the headlines for almost thirty years. So, this is not a new issue, although the media attention sometimes implies that vouchers are a new idea. A timeline is helpful when dealing with a controversial issue such as school vouchers. But before we do that, what are vouchers?

describes vouchers as:

"School vouchers give parents the freedom to choose a private school for their children, using all or part of the public funding set aside for their children’s education. Under such a program, funds typically spent by a school district would be allocated to a participating family in the form of a voucher to pay partial or full tuition for their child’s private school, including both religious and non-religious options."

You will hear vouchers called various names, such as parental choice, education grants, scholarships, and tuition grants, to list but a few of the names you will encounter for vouchers. currently offer 26 voucher programs. offers a useful table comparing the voucher programs offered in states that have them.

Why are vouchers controversial?

Now that you have access to

The made many changes which impact charities and not-for-profit organizations such as private schools. Large private schools have expert tax advice at their disposal, as well they should. However, small private schools may not have a fulltime accountant on their staff. The point of this article is to encourage the administrators and trustees of small schools to discuss The Tax Cuts and Jobs Act of 2017 with tax and legal professionals at their earliest opportunity. These small schools need to understand what impact the new tax code has on their operations.

Here then are five items which I offer as talking points for your discussions.

1. The Impact On Charitable Giving

The Tax Cuts and Jobs Act – What Nonprofits Need to Know by Sandra Cyr in Philanthropy Journal News offers some insight into how the Tax Act might impact charitable giving. I use the verb "might" advisedly, because it is too soon as of this writing in July 2018 to know what the real impact on charitable giving will be. We will have a better idea about that in the spring of 2019. In the meantime, I suggest that you discuss giving with your board and try to develop a realistic plan. Don't assume that giving will stay the way it has been. Assume that it will change and be prepared for that change.

2.

In December 2017 the 115th Congress of the United States passed a major act dealing with taxes. One of the changes in the Tax Code pertained to ESA or Educational Savings Accounts. Most parents and grandparents are probably familiar with ESAs as a means of saving for their children and grandchildren's college educations. Congress has expanded Section 529 ESAs to include K-12 education expenses as well as college expenses.

First, a bit of history. The educational savings accounts known as Section 529 plans were created by the . The section of this act which pertains to educational savings accounts is entitled PART VIII—QUALIFIED STATE TUITION PROGRAMS. The text begins on page 141. This is worth reading so that you can discuss the topic with your financial advisor when you set up your 529 plan.

Changes to the Tax Code

On Friday, December 22, 2017 President Donald Trump signed While the Act has effects on a wide range of tax situations, the specific text pertaining to K-12 educational expenses can be found on . Here is the relevant paragraph:

‘‘(7) TREATMENT OF ELEMENTARY AND SECONDARY TUITION.—Any reference in this subsection to the term ‘qualified higher education expense’ shall include a reference to expenses for tuition in connection with enrollment or attendance at an

Beginning the school search process is a lot of fun. Those beautiful photographs of tree-lined campuses and sports activities, the candid shots of classroom scenes portraying kind, patient teachers, the history of the school and its many accomplishments over the years, as well as all those famous graduates - it is all very impressive. So, you list the schools you want to examine in greater detail. At this point in your school search process, the question that I posed in the title of this article begins to surface.

I can hear you wondering how you will compare schools objectively when the costs seem so different from one school to the next. One boarding school charges $56,000 for tuition, room and board, while another school in the same state lists its tuition, room and board as $28,000. Why do some schools cost so much and some cost so little?

Boarding schools

Your costs for schools that charge the most for their services range from $45,000 to $65,000. These schools are residential schools or what we commonly call boarding schools. As well as charging for tuition and related expenses, these schools must bill for room and board. You will notice that some schools offer two types of boarding arrangements. One is the customary seven-day-a-week boarding; the other is a five-day boarding scheme where the students reside at the school during the week and return home on the weekends. The five-day boarding scheme costs less than the seven-day version. It