Growing Local Business Funding Schools. August 2011
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1 Growing Local Business Funding Schools August 2011
2 Good schools are critical to the value of local communities. Quality of schools weighs heavily in ranking of communibes High quality schools aeract more affluent populabons Property values increase and businesses grow, as affluence increases in a community Copyright 2011 School Spirit Pays, Inc. 2
3 Unfortunately, every school district in America is facing federal and state funding cuts putting school quality at risk. Copyright 2011 School Spirit Pays, Inc. 3
4 This places additional pressure on communities and volunteer fundraising efforts to fund programs. PTOs/PTAs, Booster Clubs and Student Organiza'ons increase product sales and fundraising events. Founda'ons, parents and community volunteers seek sponsorship from corpora'ons and local businesses. Copyright 2011 School Spirit Pays, Inc. 4
5 School Spirit Pays helps communities collaborate to bridge funding gaps with locally-controlled funds. Copyright 2011 School Spirit Pays, Inc. 5
6 Our mission is to help fund education by redirecting millions of dollars into schools. Copyright 2011 School Spirit Pays, Inc. 6
7 We will do this by giving access to money from a long-standing, successful business category that exists in every community Credit Card Processing providing ongoing, monthly revenue for schools. Copyright 2011 School Spirit Pays, Inc. 7
8 Volunteers from 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. Copyright 2011 School Spirit Pays, Inc. 8
9 Businesses in the program benefit from social media and smartphone applications that engage the community through promotions. Copyright 2011 School Spirit Pays, Inc. 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 Education Foundations, PTAs/PTOs and Booster Clubs. Copyright 2011 School Spirit Pays, Inc. 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. Copyright 2011 School Spirit Pays, Inc. 11
12 Enormous revenue currently moves through the credit card processing industry. Credit Card Companies $2.89 Trillion in Credit Card TransacBons Banks / Processors ~$60 Billion in Merchant Fees MSPs / ISOs ~$9 Billion Paid to MSPs / ISOs Agents ~$4 Billion Paid to Agents Copyright 2011 School Spirit Pays, Inc. 12
13 Redirecting agent fees can mean significant revenue for a mid-size school district Total Population 67,000 Student Population 16,500 High School Students 4,800 Total Local Merchants 6,500* School Spirit Pays Merchants 130 (2%) Revenue Per Month** $3,250 Revenue Per Year $39, (5%) $8,125 $97, (10%) $16,250 $195,000 1,000 (15%) $25,000 $300,000 1,625 (25%) $40,625 $487,500 *Assumes average local business processes $10,000.00/month **Average payout by School Spirit Pays is $2.50 per $1, processed (25 Basis Points) Copyright 2011 School Spirit Pays, Inc. 13
14 The program is simple Parents, educators, and community volunteers recruit local businesses to use School Spirit Pays for credit card processing Merchants fill out a standard merchant account applicabon School Spirit Pays helps merchants make minor changes to transfer their credit card processing EducaBon FoundaBons, PTAs/PTOs, and Booster Clubs receive the agent fees These non- profits determine how best to use the funds in their schools Copyright 2011 School Spirit Pays, Inc. 14
15 Making School Spirit Pays work Educa'on Founda'on PTA / PTO Boosters Sponsors the School Spirit Pays program Assigns coordinator Organizes campaigns & volunteers Manages contests and incenbve programs to engage and reward students Distributes funds per the non- profit s exisbng processes and criteria School Spirit Pays Trains coordinator & volunteers Provides sales & markebng materials Provides ongoing support and online resources Provides market- leading merchant services Manages technology infrastructure & service for merchant promobon Provides web- based reporbng for tracking & reconciliabon Community Volunteers Recruit their merchants, service providers, healthcare professionals, etc. to use School Spirit Pays for credit card processing Opt in for School Spirit Pays social media/community building programs Take advantage of promobons with School Spirit Merchants Use smartphone apps to find School Spirit Merchants every day Copyright 2011 School Spirit Pays, Inc. 15
16 Why School Spirit Pays? We are commieed to educabon we founded this company with the intenbon of helping fund schools School Spirit Pays creates a true partnership with schools Integrates EducaBon FoundaBons, PTA/PTOs, and Booster Clubs into a sustainable, profitable business model Schools receive more money, more consistently than from charity- based models School Spirit Pays provides our processing services through two of the largest and most respected financial insbtubons Our credit card transacbon processor, First Data CorporaBon, processes 3 of every 4 credit card transacbons worldwide Our sponsor bank, Wells Fargo Bank, is well- recognized as one of America s strongest banks School Spirit Pays provides a markebng plahorm to help promote and grow local businesses that parbcipate in the program - a unique value businesses would pay for with other providers Copyright 2011 School Spirit Pays, Inc. 16
17 Getting started with School Spirit Pays (SSP) Agreement Review & sign standard SSP agreement Average Time: 1 2 weeks Planning IdenBfy program leaders / core team (Approximate Bme: 1 week) Conduct planning session with SSP Staff (Approximate Bme: 2 hours) Orienta'on/ Training Schedule orientabon / training meebng with volunteer group (Approximate Bme: 1 week) Conduct orientabon / training session led by SSP staff (Approximate Bme: 2 hours) Campaign Kick off inibal campaign (may be done in conjuncbon of orientabon / training meebng) Conduct regularly scheduled campaign review meebngs EsBmated campaign length: 3 months per campaign Copyright 2011 School Spirit Pays, Inc. 17
18 Contact Denise Senter, President/COO Carolyn Spurgin, Director of Schools Development Copyright 2011 School Spirit Pays, Inc. 18
19 End Copyright 2011 School Spirit Pays, Inc. 19
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