Case 4.5: Promoting All Students’ Success (PASS)
BACKGROUND
The small not-for-profit Christine Chang started in graduate school, Promoting All Students’ Success (PASS), was more successful than she had imagined. She had taken an education policy course in graduate school in which she learned about the disparities in achievement gaps due to chronic underfunding in public schools. Her interest in after-school tutoring followed recent changes in state policy that would require students to pass a series of end-of-year exams to qualify for graduation. However, the last three years of operating budget deficits resulted in cutbacks in after-school programs and services, including after-school tutoring and test-prep courses. The state was also unwilling to fund these programs, arguing that learning and test prep should happen during regular school hours. Students, particularly those from low- and middle-income families who needed assistance, would fail their qualifying exams because they could not access free or low-cost after-school tutoring sessions.
Recognizing this need, Chang enlisted friends, including students taking courses at the School of Education, and began offering free after-school tutoring services at local high schools. They started by reaching out to schools over the summer, and by August 2018, they had more students than they could handle. It was evident to her that there was an urgent need to provide after-school tutoring services – it was time for her to launch Promoting All Students’ Success or simply PASS!
FINANCIAL INFORMATION
In November 2018, a local newspaper ran a story about PASS’s efforts which attracted the interest of a local entrepreneur, Charles Duncan. Duncan had been a borderline student in high school and had been lucky to graduate, so he contacted Chang to discuss her program.
Chang and Duncan met up the day before Christmas. At that meeting, Chang briefed Duncan on her initial thoughts on PASS’s operational structure, including inviting Duncan to serve as the chair of the Board of Directors for PASS. Duncan was impressed enough with Chang’s vision and offered her a $100,000 low-interest loan to turn PASS into a full-time venture. As he wrote her the check, Duncan noted there would be a conflict of interest, as he was PASS’s initial and sole investor. Nevertheless, he knew Chang needed his support, and he would be able to use his networks to solicit additional financial support for the organization.
Chang immediately deposited the funds in a checking account. She went home to celebrate the holiday with her family, knowing she had an exciting year ahead of her (for FY 2018, see Statement of Financial Position).
- Chang was daunted by Duncan’s generosity – but knew there was much work to do. She resigned from her position at a local nonprofit and rented office space, signing a one-year $1,750 per month lease. Rent for the space is on the first of each month.
- On January 5, 2019, PASS officially opened for business. Cha