What is the Annual Fund? TLS_Annual_Fund_Brochure_2018_website | Page 2

“When schools ask for money beyond tuition, they’re asking stakeholders to ensure that the best-trained, most committed adults are available to help students become everything they can be. Without that extra push financially from donors, virtually no school can achieve its goals.” James McManus, executive director of the California Association of Independent Schools in Burbank THE HISTORY OF THE ANNUAL FUND The Lexington School began as a dream of Ms. Josephine Abercrombie, in 1959. She wanted to establish a “school of national emulation” with an outstanding academic program that would challenge its students and inspire a love of learning that would last a lifetime. She was determined to make this dream a reality, and with the encouragement and support of her father, The Lexington School was born. At the end of each year, Ms. Abercrombie would cover the budget deficit between what had been collected in tuition and what it had cost to run the school that year. After a number of years, Ms. Abercrombie decided it was time for the school to be able to operate on its own and to become financially independent. The Board of Trustees led the school through this transition with fiscal responsibility and a focus on keeping tuition as affordable as possible so that enrollment would continue to grow. During this transition, at the end of the school year, any deficit in the operating budget would be divided among the Board. Finally, the Board decided to follow the model that most independent schools ultimately use to fill their operating deficit, what we call “The Gap” at The Lexington School. They initiated the Annual Fund, asking parents to make a charitable contribution to the operating budget of the school. Today, that fund has grown into a vital and important part of The Lexington School budget. 78% of the cost of TLS is 22% The Gap funded by tuition. 22% remaining is the 78% Tuition tuition “Gap” GAP is funded primarily through Annual Fund (approx. $740,000)