Equity Schools
| Company type | Benefit corporation |
|---|---|
| Industry | Education finance |
| Founded | 2001 |
| Founder | Richard R. Murray |
| Headquarters | Chicago , United States |
| Products | Nonlinear financing techniques for educational institutions |
| Website | {{URL|example.com|optional display text}} |
Equity Schools is a benefit corporation based in Chicago that focuses on addressing capital and operational funding obstacles for educational institutions, businesses, and various organizations. Its primary clientele includes public, private, charter, and independent schools, where it applies innovative nonlinear financing techniques for projects.
Established in 2001 by president Richard R. Murray, the creator of the corporate work study initiative utilized by the Cristo Rey Network, Equity Schools builds upon Murray’s proficiency in alternative funding strategies.
History
The nonlinear project funding concept was originally devised by Murray in 1996 when Cristo Rey High School sought assistance to fund their new institution despite having minimal assets and no formal financial plan.
This model merges elements of job sharing and employee leasing: students at Cristo Rey attend academic classes four days per week and participate in corporate internships on the fifth day. The income generated from these internships covers a significant portion of tuition expenses, making education accessible to urban youth.
After adopting this model, Cristo Rey experienced a dramatic decrease in dropout rates—from 75% down to 1%—and achieved a 100% college acceptance rate among its graduates. Today, the Cristo Rey Network implements this program across 38 schools in 24 states.
Murray’s achievements with this funding approach inspired him to establish Equity Schools in 2001. Since its inception, the company has collaborated with numerous schools nationwide to design and execute viable funding frameworks.
Nonlinear project funding
When traditional funding avenues such as fundraising efforts, government loans, grants, or tax referendums prove insufficient, Equity Schools applies a nonlinear funding strategy. This approach incorporates conventional financing where suitable but primarily emphasizes cultivating partnerships and maximizing existing revenue channels to uncover diverse and often unexpected financial resources.
By integrating various streams of capital, this nonlinear method crafts tailored, sustainable plans that support both projects and ongoing operations. It takes into account multiple dimensions including educational programs, institutional culture, financial health, real estate assets, and long-term capital requirements.
In a 2021 discussion, founder Richard Murray elaborated on this methodology and introduced "The 17 Rules of Nonlinear Funding," underscoring its importance as a strategic tool in education finance.
References