Durham Nativity School

Durham Nativity School is burning the cushion faster than the 4.4-year buffer suggests. Expenses are outpacing revenue 12.9% vs -3.4% per year over three years, and the latest operating margin is -6.8% on a 0% tuition-dependent revenue mix. Covering the deficit at today's rate, it would take more than a decade to exhaust reserves — the full budget, by contrast, is covered for about 4.4 years if every revenue line stopped. The board conversation here is the recovery plan for the operating model and the timeline to break-even. NACUBO Composite Financial Index: 3.1 / 10, adequate — monitor.

Durham Nativity School runs only 0% tuition-dependent — unusually diversified for an independent school. Endowment payout and contributions carry meaningful weight in the operating budget.

Durham Nativity School reported $2.1M in revenue against $2.2M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $9.8M — about 4.39x annual operating expense.

Operating margin landed at -6.8%, with 0.3% of revenue coming from tuition. Among same-size peers, that puts Durham Nativity School at the p13 on operating margin.