Growing Local Business Funding Schools. Winter
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1 Growing Local Business Funding Schools Winter
2 Good schools are critical to the value of local communities. Quality of schools weighs heavily in ranking of communities High quality schools attract more affluent populations Property values increase and businesses grow, as affluence increases in a community 2
3 Unfortunately, every school district in America is facing federal and state funding cuts putting school quality at risk. 3
4 This places additional pressure on businesses in these communities to support fundraising efforts and to fund programs. PTOs/PTAs, Booster Clubs and Student Organizations increase product sales and fundraising events. Foundations, parents and community volunteers seek sponsorship from corporations and local businesses. 4
5 School Spirit Pays helps communities collaborate to bridge funding gaps with locallycontrolled funds. 5
6 Our mission is to help fund education by redirecting millions of dollars into schools. 6
7 We will do this by giving access to money from a longstanding, successful business category that exists in every community Credit Card Processing providing ongoing, monthly revenue for schools. 7
8 Volunteers from Districts, Education Foundations, PTAs/ PTOs and Booster Clubs replace traditional sales agents by recruiting local businesses and service providers they use every day to process credit cards through School Spirit Pays. 8
9 Businesses in the program benefit from social media and smartphone applications that engage the community through promotions. 9
10 Communities continue to do exactly what they do today Merchants Sell Goods or Services Parents, educators and other community members buy from local merchants. the fees previously paid to agents become recurring revenue for schools through Foundations, PTAs/PTOs, Booster Clubs, or even the District s General Fund 10
11 Without increasing merchant fees, School Spirit Pays helps drive growth of local businesses which increases funding for schools, thus increasing the value of the community. 11
12 Enormous revenue currently moves through the credit card processing industry. Credit Card Companies $2.89 Trillion in Credit Card Transac6ons Banks / Processors ~$60 Billion in Merchant Fees MSPs / ISOs ~$9 Billion Paid to MSPs / ISOs Agents ~$4 Billion Paid to Agents 12
13 Schools receive 25% of the net revenue from each credit card transaction: $ Transaction Approx Total CC Processing Fees $3.50 Interchange: Credit Card Companies $1.95 Merchant Services Fees $1.55 Acquiring Bank Fees $0.70 Total Revenue to School Spirit Pays $0.85 Processing Fees $0.17 Net Revenue to School Spirit Pays $0.47 Contribution to Schools $
14 While each transaction provides a small donation, it adds up to meaningful dollars Looking at retailers: A typical small business would donate on average $42 a month, or just over $500 a year The average car dealer would donate closer to $6000 a year That cool internet e- commerce company in that warehouse down the street? Tens of thousands of dollars a year Got a family des6na6on in your area like a ski resort or theme park? Poten6ally hundreds of thousands of dollars a year But there s so much more: Accounts Receivable departments in big companies all use credit cards Large businesses oven get paid with corporate purchasing cards Big businesses may not think they do much in credit cards, but because of their scale, they oven do significantly more volume than a retailer Many large Business- to- Consumer companies do Automated Recurring Billing for memberships and other ongoing relationships And all at absolutely no cost to the businesses supporting your district 14
15 EXAMPLE: The School Spirit Pays program can mean significant revenue for a district: Business Monthly Dona0on Annualized Local Ford Dealer , HVAC Mechanical Dealer Auto Lube & Tune- up Store , Daycare Facility , Den6st , Optometrist , Sports Club , Educa6on Founda6on Programs , Totals $1, $16, What could your district do with this money? 15
16 The program is simple Administrators, educators, parents and community volunteers recruit local businesses to use School Spirit Pays for credit card processing Merchants fill out a standard merchant account application School Spirit Pays helps merchants make minor changes to transfer their credit card processing The District, Education Foundations, PTAs/PTOs, or Booster Clubs receive the agent fees These entities determine how best to use the funds in their schools 16
17 Program Overview Pilot Memo of Understanding Commitment of 10 strategic businesses Presentation of concept to sponsors & supporters Launch Agreement Program coordinator appointed Press announcement Board / Committee program plan Expand Increase Volunteer Committee Engage Chamber of Commerce / Business Organizations Partnerships with PTA/PTO/parent volunteer orgs Manage Annual campaign plan Ongoing execution 17
18 Why School Spirit Pays? We are committed to education we founded this company with the intention of helping fund schools School Spirit Pays creates a true partnership with schools Integrates local businesses into a sustainable, profitable business model Schools receive more money than from event- or charity-based models School Spirit Pays provides our processing services through two of the largest and most respected financial institutions Our credit card transaction processor, First Data Corporation, processes 3 of every 4 credit card transactions worldwide Our sponsor bank, Wells Fargo Bank, is well-recognized as one of America s strongest banks School Spirit Pays provides a marketing platform to help promote and grow local businesses that participate in the program a unique value to the businesses, and a way to connect to school supporters in your community 18
19 Contact Don Paris, Chief Executive Officer Chris Butcher, VP Business Development For more information, visit 19
20
21 The School Spirit Pays program can mean significant revenue for a district even if focused solely on small businesses: Total Population Student Population 30,000 5,000 Total Local Merchants 3,000* School Spirit Pays Merchants Revenue Per Month** Revenue Per Year 1 $42 $504 (0.5%) 15 $630 $7,560 30(1%) 60(2%) $1,260 $2,520 $15,120 $30, (5%) $6,300 *Assumes average local business processes $20,000.00/month **Average payout by School Spirit Pays is $2.10 per $1, processed (21 Basis Points) $75,600 21
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