My school is considering setting up a prepaid tuition plan, generally a situation where grandparents may want to prepay tuition over several years going forward, usually for advantageous tax reasons - a few parents have requested to do so at our school, especially after an article appeared in the Wall Street Journal about this topic. Do any of your schools have these plans? Does anyone know if Blackbaud has a recommended way of handling such payments? Any information most appreciated. Helen Goldberg [Email Removed] 617-912-1359 The Winsor School

When was that article published in the Wall Street Journal? I would be curious to read it. Thanks, Steve Maljian Controller Village Christian Schools, Inc. 818-767-8382 x204 (office) 818-768-2006 (fax)

I believe it was Feb 15, 06

Helen, We set up an Unearned Tuition liability account when the funds are received. Each year we debit the account through Student Billing to apply the tuition payment to the current year. Be sure that you have a signed agreement for prepayment of tuition that covers things like when the tuition will be applied, changes in tuition, non-refundable status and tax consequences.

We received a check for tuition for the next two years. The grandparents had a legal document prepared with all of the details. We deposited the money in a general fund asset management account and designated it as deferred revenue. We request the money when the tuition is due and run it through the normal process. Charlotte Clark Brookstone School Columbus, GA

Some time ago we inquired of Blackbaud how to handle a prepayment for a number of years and I thought I remember them telling us the software wasn't able to handle more than one billing year. I may be mistaken on this as it's been awhile?? We do handle prepayments for the current school year as has been posted here.