Castilleja School Assets Surge 77% to $317M, Secured $111.15M Tax-Exempt Bonds and $25.1M Contributions to Finance Multi-Year Campus Reconstruction
By Data Team | Published October 29, 2026
Castilleja School's total assets climbed 77.3% to $317.0 million in fiscal year 2025, anchored by a $76.6 million endowment that covers 10.4% of the Palo Alto all-girls school's $37.1 million operating budget (and 12.6% of direct program expenses), according to its latest IRS filing. That capital base enables Castilleja to spend $71,562 per student in direct program services—and $87,128 per student in total institutional expenditures—while awarding $4.57 million in financial aid.
Castilleja's balance sheet illustrates how Silicon Valley philanthropy and tax-exempt bond financing reshape the economics of independent day schools. While baseline tuition and fees generate $61,666 per student across its 426-student body in grades 6–12, endowment draws and annual giving bridge a $9,896 per-student instructional gap ($25,462 per student including overhead) and fund tuition assistance for 23.2% of enrolled students—supporting the Advanced Topics (AT) curriculum and faculty density behind Castilleja's standing in the Elite College Placement Index (ECPI).
Fiscal year 2025 also marked a structural inflection point for the campus. Castilleja secured $111.15 million in tax-exempt municipal bonds alongside $25.10 million in contributions—a 263.5% year-over-year fundraising surge—to finance its multi-year Palo Alto campus reconstruction while expanding net assets by 17.7% to $178.6 million.
Institutional & Governance Profile
Operating legally as the Castilleja School Foundation at 1310 Bryant Street in Palo Alto, California, the institution is the only nonsectarian all-girls secondary school serving grades 6 through 12 in the San Francisco Peninsula and Silicon Valley corridor. In May 2025, the Board of Trustees modernized its corporate bylaws to formalize the fiduciary authority of the Chief Financial Officer and streamline executive appointment thresholds during its leadership transition and campus redevelopment.
Institutional Scale and Board Structure
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Founding & Workforce Scale: Founded in 1907 and incorporated as a 501(c)(3) foundation in 1942, Castilleja issued 299 Form W-2s in calendar year 2024 and engaged 215 active volunteers across its governance and parent networks.
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Executive Leadership: Principal Officer and Head of School Dr. Betty Noel-Pierre leads the institution alongside Associate Head of School for Finance and Operations (CFO) Kathleen Layendecker, succeeding Interim Head of School Julia Eells and former Head of School Nanci Zabatta Kauffman.
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Governing Board (Part VI): The governing body comprises 25 voting trustees—24 of whom are independent—led by Board Chair Zac Zeitlin, Vice-Chair Odette Harris, Secretary and Treasurer Jeff Wong, and Alum Chair Lindsay Louie.
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May 2025 Bylaw Amendments (Schedule O): Trustees amended the corporate bylaws to codify CFO responsibilities, shift the board vote required to appoint or terminate the Head of School from a two-thirds supermajority to a simple majority, and update executive compensation approval protocols.
Top-Line Financials
Castilleja's FY25 balance sheet (covering July 1, 2024 through June 30, 2025) reflects simultaneous capital expansion and disciplined expense management. Total assets rose by $138.2 million (+77.3%) to $317.0 million following the October 2024 bond issue, while surging capital gifts and lower operating expenses flipped the school's operating bottom line from a $3.63 million deficit in FY24 to an $18.43 million surplus in FY25.
Balance Sheet Strength
- Total Assets $316,977,746 (+77.3%)
- Total Liabilities $138,379,079 (+411.6%)
- Total Net Assets $178,598,667 (+17.7%)
- Donor-Restricted Net Assets $61,590,280 (34.5% of Total Net Assets)
- Unrestricted Net Assets $117,008,387 (65.5% of Total Net Assets)
Operating Performance
- Total Revenue $55,547,071 (+60.9%)
- Total Expenses $37,116,560 (-2.7%)
- Operating Surplus $18,430,511 (+607.3%)
- Unrealized Gains (Excluded) $8,436,112
Note: Combining the $18.43 million Form 990 operating surplus with $8.44 million in net unrealized investment gains accounts for the entire $26.87 million (+17.7%) expansion in Castilleja's net assets during FY25.
Revenue Breakdown
Unlike conventional private day schools that rely on tuition for more than 80% of annual receipts, Castilleja generated more than half of its $55.55 million in FY25 revenue from philanthropic contributions and realized investment income. Contributions more than tripled year-over-year to $25.10 million as donors funded the campus master plan, nearly matching the $27.36 million collected in program service revenue.
Primary Revenue Streams
FY25 Revenue Distribution
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Program Service Revenue Up 6.4% YoY (+6.4%)$27,360,926 (49.3%)
- Tuition & Fees $26,269,913
- Auxiliary Services $890,067
- Musical & Other Events $172,446
- Summer Camp $28,500
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Contributions & Grants Up 263.5% YoY (+263.5%)$25,103,118 (45.2%)
- Direct Gifts & Capital Grants $23,953,931
- VIEW360 Gala Contributions (Schedule G) $1,149,187
- Noncash Public Stock Gifts (42 Donations) $886,566
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Investment Income Up 49.5% YoY (+49.5%)$3,185,132 (5.7%)
- Dividends & Interest $2,515,017
- Realized Capital Gains ($17.55M Gross Sales) $670,115
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Other Revenue Net Event Deficit (-54.3%)-$102,105 (-0.2%)
- Net Rental Income ($113,647 Gross Rents) $103,904
- Net Fundraising Event Loss ($255,602 Direct Costs) -$215,602
- Miscellaneous Other Income $9,593
Endowment Performance and Asset Allocation
Castilleja manages $141.95 million in total investment securities across its $76.61 million endowment and capital reserve portfolios (in addition to $108.28 million in cash and short-term cash equivalents held during construction). Nearly half of the investment portfolio ($69.89 million, or 49.2%) is deployed into alternative and commingled vehicles reported on Schedule D, Part VII—including private equity, commingled funds, hedge funds, offshore funds, and a dedicated venture capital partnership, the Entrepreneurs Endowment Fund LLC.
Schedule F disclosures further confirm that $21.20 million of Castilleja's alternative portfolio is domiciled overseas ($18.10 million in Central America and the Caribbean and $3.11 million in Europe), necessitating federal Form 926, Form 5471, Form 8621, and Form 8865 filings. Because Castilleja is classified as a secondary school rather than a college or university, its investment earnings remain statutorily exempt from the federal IRC Section 4968 endowment excise tax.
Portfolio Performance & Asset Allocation ($141.95M Total Securities)
Part X & Schedule D, Part VII Mix
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Endowment Balance (EOY): $76,610,001 (up 3.2% YoY), representing $179,836 per student across 426 enrolled students.
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Endowment Investment Return: $5,789,262 in net endowment investment earnings (7.8% return on the $74.23M beginning balance), while total balance sheet unrealized gains reached $8,436,112.
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Alternative, Offshore & VC Capital: $69.89M in Schedule D Part VII securities, including $21.20M in offshore structures and a 62.96% controlling stake in Entrepreneurs Endowment Fund LLC (Schedule R).
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Annual Endowment Payout: $3,853,232 (5.2% draw on beginning balance), funding 10.4% of Castilleja's $37.12M total operating budget (and 12.6% of its $30.49M direct program budget).
Detailed Asset Mix ($141.95M Total Investment Portfolio)
5-Year Endowment History
Our data team analyzed the five-year progression of Castilleja's endowment across Schedule D, Part V (FY21 through FY25). Starting from $61.05 million at the beginning of FY21, the fund added $7.31 million in direct endowment contributions and generated $30.67 million in cumulative net investment earnings—weathering a $2.38 million market pullback in FY22 before compounding steadily over the subsequent three fiscal years. Across the five-year span, Castilleja distributed $22.42 million from the endowment to support facilities and academic programs while expanding the principal to a record $76.61 million (comprising 44.023% permanent endowment, 28.665% term endowment, and 27.312% board-designated quasi-endowment).
FY25 Endowment Waterfall (Schedule D, Part V)
Visualizing the bridge from Beginning of Year (1a) to End of Year (1g) in millions.
5-Year Historical Endowment Balances (Line 1g)
End of year balance progression in millions (FY21 - FY25).
| IRS Line Item | FY25 (Current) | FY24 (Prior) | FY23 (2 Yrs Back) | FY22 (3 Yrs Back) | FY21 (4 Yrs Back) |
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| 1a. Beginning of year | $74,234,945 | $71,910,189 | $70,129,307 | $74,557,554 | $61,050,648 |
| 1b. Contributions | $439,026 | $1,745,816 | $1,995,364 | $1,863,666 | $1,268,000 |
| 1c. Net investment earnings | $5,789,262 | $7,282,535 | $4,125,594 | ($2,376,413) | $15,850,406 |
| 1d. Grants or scholarships | $0 | $0 | $0 | $0 | $0 |
| 1e. Other expenditures | ($3,853,232) | ($6,703,595) | ($4,340,076) | ($3,915,500) | ($3,611,500) |
| 1f. Administrative expenses | $0 | $0 | $0 | $0 | $0 |
| 1g. End of year balance | $76,610,001 | $74,234,945 | $71,910,189 | $70,129,307 | $74,557,554 |
Per-Student Spending and True Cost
Evaluating Castilleja's direct program service expenses against tuition revenue reveals the structural subsidy built into its day-school model. Across 426 students in grades 6 through 12, Castilleja spends $71,562 per student on direct educational programs ($30,485,481 in Part IX, Column B)—outspending the $61,666 per student collected in gross tuition and fees by $9,896 per pupil.
When institutional management ($4.58 million) and fundraising ($2.05 million) overhead are included, Castilleja's overall total spending reaches $87,128 per student ($37,116,560 total functional expenses). Baseline tuition covers 86.2% of direct program spending and 70.8% of total institutional spending, with endowment draws and annual philanthropy financing the remainder—including Castilleja's university-level Advanced Topics (AT) curriculum, global experiential travel, and robotics and arts laboratories.
Operations vs. Revenue
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Regular Session Program Spend: $30,485,481 in direct program services across 426 students in Grades 6–12 ($71,562 gross program spend per student; $60,839 net program spend excluding $4.57M in financial aid grants).
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Overall Total Institutional Spend: $37,116,560 across all functional categories—including $30,485,481 in program services (82.1%), $4,584,271 in management and general (12.4%), and $2,046,808 in fundraising (5.5%)—equating to $87,128 in total spend per student ($76,405 net of financial aid).
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Tuition & Fee Revenue: $26,269,913 ($61,666 per student before financial aid discounts). Endowment payouts ($3.85M) and annual gifts cover the $9,896 per-student program gap ($25,462 per-student total expense gap).
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Student Activities & Instructional Delivery: Direct student activities totaled $1,646,050 alongside $969,622 in instructional materials, $552,441 in information technology, and $175,722 in experiential travel.
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Campus Dining & Auxiliary Operations: Auxiliary services generated $890,067 in revenue alongside $172,446 from musical/campus events and $28,500 from summer camps, while direct food service expenses totaled $539,878 (supplemented by Flik Hospitality Group's $1.21M dining management contract).
Financial Aid: How Castilleja Spends $4.57M on Access
Castilleja disbursed $4,568,069 in domestic student financial aid and fellowships in FY25 (up 4.5% from $4,370,004 in FY24), representing 15.0% of direct program expenses and 17.4% of gross tuition revenue. Per Schedule I, Part III, the school awarded $4,564,069 in tuition assistance, remission, and awards across 99 recipients—supporting 23.2% of its 426-student body (or 23.8% against its 416-student Palo Alto CUP cap) with an average grant of $46,102 per aided student.
In Schedule I, Part IV, Castilleja notes that its Financial Aid Committee determines awards based on demonstrated need approved annually by the Board of Trustees, and provides supplemental funding beyond tuition to cover auxiliary costs such as textbooks and field trips. Unlike Northeastern boarding academies that disburse voluntary municipal grants on Schedule I, Part II, Castilleja recorded $0 in Schedule I organizational or government grants, channeling its community expenditures through mandatory City of Palo Alto permit, traffic monitoring, and environmental mitigation frameworks.
Internal Student Support (Schedule I, Part III)
- Aided Student Share 23.2% (99 of 426 students)
- Tuition Assistance & Remission $4,564,069
- Average Grant per Aided Student $46,102
- Hass Fellowship Grants (2 Recipients) $4,000
- Tuition Discount Rate (% of Gross Tuition) 17.4%
Wraparound Access & Schedule I Governance
- Auxiliary Textbook & Field Trip Coverage (Schedule I, Part IV) Qualifying tuition-assistance families receive additional financial support covering auxiliary services, required textbooks, and experiential field trips.
- Domestic Government & Organizational Grants ($0 on Schedule I, Part II) Castilleja reported $0 in voluntary PILOT or organizational grants on Schedule I, fulfilling local obligations via Palo Alto CUP entitlements, TDM monitoring, and development impact fees.
Executive and Leadership Compensation
Castilleja's FY25 Schedule J disclosures capture a multi-million-dollar executive transition in calendar year 2024. Former Head of School Nanci Zabatta Kauffman recorded $1,811,706 in total reportable compensation—consisting of $507,591 in severance pay and a $1,304,115 taxable distribution from a 457(f) nonqualified deferred compensation plan that vested over prior years (Schedule J, Part III).
Among active operational leaders in 2024, Associate Head of School for Finance and Operations (CFO) Kathleen Layendecker was the highest-paid ongoing executive at $791,013 in total compensation ($723,905 base salary plus $67,108 in retirement and nontaxable benefits), overseeing the school's $111.15 million bond issuance and campus reconstruction. Interim Head of School Julia Eells received $515,241 in total compensation, followed by Advancement Director Sung Kim at $352,657.
Payroll Scale and Compensation Governance
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Total Institutional Payroll: Castilleja paid $22,607,234 in total employee salaries, benefits, and payroll taxes in FY25 (accounting for 60.9% of all institutional expenses) across 299 W-2 employees, with 80 staff members (26.8%) earning over $100,000.
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Executive Transition & Active Packages: Former Head of School Nanci Zabatta Kauffman received $1,811,706 ($1,304,115 vested 457(f) payout and $507,591 severance), while Associate Head of School for Finance & Operations Kathleen Layendecker earned $791,013 and Head of School Julia Eells earned $515,241.
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Independent Compensation Benchmarking (Schedule J & Schedule O): The Board of Trustees retains an independent compensation consultant and reviews peer Form 990 comparability data to approve compensation for the Head of School and Associate Head of School, while setting macro budget parameters for faculty and staff salaries.
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Form 990, Schedule J, Part II: Compensation Breakdown (FY25)
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| Name & Title (A) | Base Comp (B-i) | Bonus (B-ii) | Other (B-iii) | Retirement & Deferred (C) | Nontaxable Benefits (D) | Total (E) | Prior Deferred (F) |
| Nanci Zabatta KauffmanFormer Head of School | $0 | $0 | $1,811,706 | $0 | $0 | $1,811,706 | $0 |
| Kathleen LayendeckerAssoc. HOS for Finance & Ops | $723,905 | $0 | $0 | $34,500 | $32,608 | $791,013 | $0 |
| Julia EellsHead of School | $471,477 | $0 | $0 | $23,000 | $20,764 | $515,241 | $0 |
| Sung KimAdvancement Director | $307,491 | $0 | $0 | $30,550 | $14,616 | $352,657 | $0 |
| Laura ZappasHead of Middle School | $243,859 | $0 | $0 | $14,131 | $25,768 | $283,758 | $0 |
| Susan RaymondDirector of Finance & Accounting | $195,327 | $0 | $0 | $13,535 | $33,212 | $242,074 | $0 |
| Gabrille McColganDir, Coll Couns/Upper Sch Acad Pol | $200,681 | $0 | $0 | $20,097 | $19,109 | $239,887 | $0 |
| Christina GwinDean of Faculty | $198,678 | $0 | $0 | $21,980 | $18,130 | $238,788 | $0 |
| Claire LedwithDir of Admissions & Tuition Assist | $148,979 | $0 | $0 | $3,452 | $14,704 | $167,135 | $0 |
Facilities, Debt, and Municipal Relations
After a decade-long land-use entitlement process in Palo Alto, Castilleja entered the tax-exempt municipal bond market in October 2024 to finance the reconstruction of its 6-acre campus at 1310 Bryant Street. Per Schedule K, the California Enterprise Development Authority issued $111,148,829 in tax-exempt bonds (CUSIP 13067REJ8) on October 3, 2024, allocating $110.0 million to capital construction proceeds and $1.15 million to issuance costs.
By borrowing in the tax-exempt market rather than liquidating its $76.6 million endowment, Castilleja preserved its investment portfolio while expanding net land, buildings, and construction-in-progress by 35.5% to $52.65 million in FY25. Although Castilleja made $0 in voluntary Schedule I PILOT payments, its municipal relationship with the City of Palo Alto is strictly regulated through Conditional Use Permit (CUP) enrollment caps, mandatory Transportation Demand Management (TDM) trip-reduction audits, development impact fees, and $386,584 in annual legal compliance expenditures.
Capital Debt & Municipal Engagement
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Physical Plant & Campus Redevelopment: Castilleja holds $82.17 million in gross land, buildings, and construction-in-progress ($52.65 million net book value after $29.52 million in accumulated depreciation), including $35.46 million in construction and other capital assets alongside $1.10 million in annual occupancy costs and $1.43 million in depreciation.
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$111.15M Tax-Exempt Bond Issue (Schedule K): Issued October 3, 2024 via the California Enterprise Development Authority, leaving $110,063,089 in year-end bond liabilities and boosting cash and temporary cash investments to $108.28 million to fund phased campus construction.
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Town-Gown PILOT Payments & Palo Alto CUP Relations: Castilleja recorded $0 in voluntary PILOT payments on Schedule I, Part II. Instead, town-gown relations with the City of Palo Alto are governed via mandatory building and development impact fees, Urban Forestry Fund mitigations, and strict CUP traffic monitoring capping construction-phase enrollment at 416 students (with phased TDM compliance targets toward 450–540 students).
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Top Capital & Operational Vendors (Part VII, Section B): Among 31 independent contractors paid over $100,000, top disbursements went to Truebeck Construction Inc ($4.04M for campus construction), Nashni Consulting LLC ($3.69M for project consulting), Wilmington Trust National Association ($2.03M for bond/financial services), Form 4 Architecture Inc ($1.23M for architectural design), and Flik Hospitality Group ($1.21M for campus dining).
Editorial Note
All financial figures in this report derive from Castilleja School Foundation's FY25 IRS Form 990 (covering July 1, 2024 through June 30, 2025 across 426 regular-session students in Grades 6–12) and have been verified by the Chicardgo School data team.
While Castilleja spends $71,562 per student in direct program services ($87,128 in total institutional expenditures), Chicardgo School does not imply that financial expenditure mathematically causes higher placement into Ivy+, Top 25 National University, or Top 15 Liberal Arts College tiers. Rather, these financial resources fund the Advanced Topics (AT) faculty, need-based tuition assistance, and experiential programming that operate alongside Castilleja's historical matriculation outcomes.
Accounting Reconciliation: Readers comparing Castilleja's consolidated GAAP financial statements (audited by Hood & Strong LLP, Form 990 Part IV Line 12b) to IRS Form 990 will note standard reporting differences. Form 990 reports $37.12M in total functional expenses (recording $4.57M in student financial aid grants as an operating expense on Part IX Line 2 while netting $255,602 in VIEW360 gala direct costs against revenue on Part VIII Line 8b), whereas GAAP financial statements net tuition discounts directly against gross tuition revenue (resulting in $32.55M in net operating expenses prior to special-event reclassifications) and include $8.44M in net unrealized investment gains reported separately on Form 990 Part XI Line 5.
Frequently Asked Questions: Castilleja's Form 990 Financials
As of Fiscal Year 2025, Castilleja School's endowment stands at $76,610,001 ($179,836 per student across 426 students). Its $3,853,232 annual endowment payout covers 10.4% of the school's $37.12 million total operating budget and 12.6% of its $30.49 million direct program services budget.
Castilleja spends $71,562 per student annually in direct regular-session program services ($30,485,481 across 426 students, or $60,839 net of financial aid grants), exceeding the $61,666 generated per student in baseline tuition and fees. When management and fundraising expenses are included, overall total spending reaches $87,128 per student ($37,116,560 total).
Castilleja disbursed $4,568,069 in financial aid and fellowships in FY25. Tuition assistance totaled $4,564,069 across 99 students—supporting 23.2% of the 426-student body (or 23.8% against the 416-student Palo Alto CUP cap) with an average grant of $46,102—alongside $4,000 for two Hass Fellowship recipients and supplemental support for textbooks and field trips.
In calendar year 2024, former Head of School Nanci Zabatta Kauffman received $1,811,706 in reportable compensation, consisting of a $1,304,115 payout from a previously vested 457(f) deferred compensation plan and $507,591 in severance. Among active administrators, Associate Head of School for Finance and Operations Kathleen Layendecker earned the highest package at $791,013, followed by Head of School Julia Eells at $515,241.
Yes. Because federal tax law classifies Castilleja as a secondary school serving grades 6–12 rather than an institution of higher education, it is exempt from the federal IRC Section 4968 excise tax on net investment income.
Castilleja School's total assets jumped 77.3% to $316,977,746 in fiscal year 2025, driven by $141.95 million in investment securities, $108.28 million in cash and short-term construction reserves from its October 2024 tax-exempt bond issue, and $52.65 million in net campus real estate and equipment.
Further Reading
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