Backed by $120M Tuition Revenue, The Harker School Assets Reach $359.6M While Increased 31.1% Securities Portfolio and Reducing 25.2% Tax-Exempt Bond Liabilities
By Data Team | Published October 29, 2026
The Harker School's total assets reached $359.59 million in fiscal year 2025, backed by $120.05 million in tuition and fee revenue and a $29.65 million endowment whose $586,725 annual appropriation covers 0.52% of the school's $113.67 million operating budget, according to its latest IRS filing. Operating across three San Jose campuses serving approximately 2,040 TK–12 students, Harker spends $45,360 per student in direct program services ($55,719 per student in total institutional expenses) while awarding $9.60 million in financial aid.
Harker's balance sheet illustrates the distinct financial model of California's largest independent preparatory school compared to East Coast boarding institutions. While gross tuition and fees generate $58,850 per student ($54,143 net of financial aid), Harker's self-funding operating model produces a $22.74 million annual surplus and $6.25 million in realized investment income from its $146.72 million liquid treasury—financing the specialized STEM laboratories and faculty scale behind its performance in the Elite College Placement Index (ECPI).
Rather than relying on endowment draws to close an operating deficit, Harker uses high-velocity tuition cash flow to expand its financial reserves and pay down facility debt. In FY25 alone, the school increased its publicly traded securities portfolio by 31.1% to $104.68 million while reducing tax-exempt bond liabilities by 25.2% to $18.53 million.
Institutional & Governance Profile
Tracing its origins to 1893 as Manzanita Hall in Palo Alto and incorporated in California in 1965, The Harker School operates across three dedicated San Jose campuses: Bucknall (Lower School, TK–5), Union (Middle School, 6–8), and Saratoga (Upper School, 9–12). The school pairs a compact, nine-member governing board with a professional executive cabinet overseeing more than 1,000 employees.
Institutional Scale and Board Structure
-
•
Founding & Workforce Scale: Founded in 1893 (corporate formation 1965), Harker issued 1,021 Form W-2s in calendar year 2024, filed 220 Form 1099 returns, and engaged 450 documented parent and alumni volunteers.
-
•
Executive Leadership: Head of School Brian Yager leads the institution alongside Chief Financial Officer Martin ("Marty") Bradford, Assistant Head of School Jennifer Gargano, and Director of Advancement Kimberly Lobe.
-
•
Governing Board (Part VI & VII): The Board of Trustees comprises 9 voting members, including 8 independent trustees (led by Board Chair John B. Owens, Secretary Teja Patil, and Treasurer Suki Mohammed) and Head of School Brian Yager as the sole non-independent voting member.
-
•
Audit & Compliance Controls (Schedule O): Independent accounting firm RLA LLP audits the financial statements. The draft Form 990 is reviewed and approved for publication by the Chair of the Audit Committee under board-authorized procedures, and all employees and trustees must comply with Conflict of Interest policies distributed via the Employee Handbook and school intranet.
Top-Line Financials
In FY25 (covering June 1, 2024 through May 31, 2025), Harker expanded its total asset base to $359.59 million while cutting total liabilities by 18.2%. Because 92.8% of Harker's $318.38 million net asset base is unrestricted, school leadership retains substantial balance-sheet flexibility to fund capital projects and liquid investment reserves directly from operating surpluses.
Balance Sheet Strength
- Total Assets $359,590,957 (+5.5%)
- Total Liabilities $41,207,039 (-18.2%)
- Total Net Assets $318,383,918 (+9.7%)
- Donor-Restricted Net Assets $22,777,540 (7.2% of Total Net Assets)
- Unrestricted Net Assets $295,606,378 (92.8% of Total Net Assets)
Operating Performance
- Total Revenue $136,411,585 (+1.8%)
- Total Expenses $113,667,167 (+1.1%)
- Operating Surplus $22,744,418 (+5.4%)
- Unrealized Gains (Excluded) $5,289,623
Note: Combining the $22.74 million Form 990 operating surplus with $5.29 million in net unrealized investment gains accounts for the exact $28.03 million (+9.7%) increase in Harker's total net assets during FY25.
Revenue Breakdown
Tuition and program fees serve as the primary engine of Harker's $136.41 million revenue profile, accounting for 88.0% of total inflows. While philanthropic contributions normalized by 25.6% following prior-year capital campaign gifts, realized investment income surged 41.0% year-over-year to $6.25 million on the strength of equity portfolio gains and interest yields.
Primary Revenue Streams
FY25 Revenue Distribution
-
Program Service Revenue Up 3.3% YoY$120,054,583 (88.0%)
- TK–12 Tuition, Summer & Program Fees $120,054,583
- Prior Year Tuition & Fees (FY24) $116,270,647
-
Contributions & Grants Down 25.6% YoY$9,293,254 (6.8%)
- Direct Cash Gifts & Annual Giving $8,401,029
- Noncash Publicly Traded Stock Gifts (36 Gifts) $454,498
- Noncash Computer Hardware & Software (28 Gifts) $437,727
-
Investment Income Up 41.0% YoY$6,249,764 (4.6%)
- Dividends & Interest $3,695,678
- Realized Net Securities Gains ($23.10M Gross Sales) $2,366,133
- Realized Gains on Other Assets $187,953
-
Other Revenue Up 3.0% YoY$813,984 (0.6%)
- Gross & Net Real Estate Rental Income $813,984
Endowment Performance and Asset Allocation
Unlike older boarding schools that rely on alternative-heavy endowments to subsidize operations, Harker maintains a burgeoning $29.65 million formal endowment alongside a much larger $146.72 million liquid treasury of publicly traded securities and cash reserves. In FY25, Harker's formal endowment distributed $586,725 in endowment appropriations, covering 0.52% of the school's $113.67 million Form 990 operating budget (0.57% of its $103.69 million GAAP budget), while realized investment income of $6.25 million across its broader financial portfolio equaled 5.5% of total expenses.
Harker invests 100% of its financial assets in liquid domestic publicly traded securities and cash equivalents, reporting zero exposure to illiquid private equity, hedge funds, or offshore investment vehicles. As a 501(c)(3) TK–12 school, Harker is also exempt from the federal IRC Section 4968 endowment excise tax on net investment income, allowing its investment earnings to compound without federal tax drag.
Portfolio Performance & Asset Allocation ($146.72M Liquid Financial Holdings)
Form 990, Part X Financial Mix
-
•
Endowment Balance (EOY): $29,649,240 (up 21.4% YoY), representing $14,534 per student ($71,921 per student across all $146.72M in liquid cash and securities).
-
•
Net Investment Gains: $2,928,559 in Schedule D endowment earnings (12.0% return on beginning balance), alongside $6.25M in realized portfolio income and $5.29M in unrealized gains.
-
•
100% Liquid Domestic Allocation: $104.68M in publicly traded securities (up 31.1% YoY) and $42.04M in cash and short-term savings, with $0 in alternative or offshore structures.
-
•
Total Endowment Payout: $586,725 in annual endowment appropriations (covering 0.52% of the $113.67M Form 990 operating budget), managed alongside $377,650 in investment management fees.
Detailed Asset Mix
5-Year Endowment History
Over the five-year lookback reported on Schedule D, Part V, Harker's endowment more than quintupled (+421.8%), rising from a $5.68 million beginning balance in FY21 to $29.65 million at the close of FY25. During that span, the school added $22.44 million in direct endowment contributions—highlighted by an $11.57 million influx in FY21 and $10.03 million across FY23–FY25—while generating $5.44 million in net investment earnings. As of May 31, 2025, the fund comprises 68.329% permanent donor-restricted endowment and 31.671% 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) |
|---|---|---|---|---|---|
| 1a. Beginning of year | $24,422,778 | $18,125,976 | $15,486,847 | $17,944,540 | $5,681,998 |
| 1b. Contributions | $2,884,628 | $3,925,182 | $3,223,663 | $829,566 | $11,574,997 |
| 1c. Net investment earnings | $2,928,559 | $2,787,506 | ($335,494) | ($785,809) | $844,495 |
| 1d. Grants or scholarships | $0 | $0 | $0 | $0 | $0 |
| 1e. Other expenditures | $0 | $0 | $0 | $0 | $0 |
| 1f. Administrative / Appropriations* | ($586,725) | ($415,886) | ($249,040) | ($131,185) | ($156,950) |
| 1g. End of year balance | $29,649,240 | $24,422,778 | $18,125,976 | $15,486,847 | $17,944,540 |
Per-Student Spending and True Cost
Evaluating Harker's direct program service expenditures across its 2,040 TK–12 students highlights the fiscal mechanics of a large-scale Silicon Valley day school. In FY25, Harker spent $92,533,643 on direct educational program services, equating to $45,360 per student ($40,653 net of financial aid grants). When factoring in $18.25 million in management and general administration and $2.89 million in advancement, overall institutional spending reached $113,667,167, or $55,719 per student.
Because gross tuition and fee collections average $58,850 per student ($54,143 net of financial aid), tuition inflows cover 100% of both direct program spending ($45,360) and total institutional operating costs ($55,719). That structural margin enables Harker to fund extensive departmental programming, international student travel, and enterprise-grade campus technology while still banking a $22.74 million operating surplus.
Operations vs. Revenue
-
•
Regular Session Program Spend: $92,533,643 in direct program services across approximately 2,040 TK–12 students ($45,360 gross program spend per student; $40,653 net excluding $9.60M in financial aid grants).
-
•
Total Institutional Spend: $113,667,167 in total functional expenses ($55,719 per student), including $18,247,895 in management and general overhead (16.1%) and $2,885,629 in fundraising (2.5%).
-
•
Tuition & Fee Revenue: $120,054,583 ($58,850 per student before financial aid discounts; $54,143 net of aid), generating a self-sustaining operating surplus of $13,490 per student over direct program costs.
-
•
Departmental & Academic Programs: $5,858,622 in specialized departmental expenses, $4,273,442 in outside educational and operational services, and $1,709,954 in dedicated academics and student-related programming.
-
•
Student Travel & Information Technology: $5,256,156 combined across student educational trips ($3,017,973) and institutional travel ($2,238,183), alongside $3,093,174 in direct information technology operating expenditures.
Financial Aid: How Harker Spends $9.6M on Access
On Schedule I, Part III, Harker reports $9,602,385 in combined financial aid and staff tuition reductions for FY25—a 6.7% increase over the $9.00 million awarded in FY24. Those grants supported 222 recipients across its 2,040-student enrollment, representing an aided student share of 10.9% with an average award of $43,254.
Unlike heavily endowed boarding schools where nearly half the student body receives aid funded by endowment payouts, Harker finances 93.9% of its $9.60 million aid budget directly through tuition redistribution (reinvesting 8.0% of gross tuition inflows back into tuition assistance). While Harker reports zero external grants to outside organizations on Schedule I, Part II, the school extends its academic footprint across Silicon Valley through open-enrollment Summer Institute and Summer Camp programs serving both public and private school students.
Internal Student Support
- Aided Student Share 10.9% (222 recipients)
- Financial Aid & Staff Tuition Reduction $9,602,385 (+6.7%)
- Average Grant per Recipient $43,254
- Share of Gross Tuition Reinvested 8.0%
- Schedule I Noncash Stipends $0 (Credited to Tuition)
Aid Administration & Regional Access
- Need-Based Aid & Faculty Remission ($9,602,385) Evaluated via federal tax returns and W-2 verification for both legal parents, alongside tuition reduction benefits used to recruit and retain faculty and staff in Silicon Valley.
- Open Summer Institute & Enrichment Programs While Schedule I Part II reports $0 in external domestic organization grants, Harker opens its for-credit Upper and Middle School Summer Institutes to qualified students from surrounding public and private schools.
Executive and Key Employee Compensation
Operating in the competitive Silicon Valley labor market, Harker directs 61.0% of its entire $113.67 million budget toward employee salaries, benefits, and payroll taxes ($69.31 million total, up 4.8% YoY). Nearly a quarter of Harker's 1,021 W-2 employees—252 staff members in total—earned more than $100,000 in reportable compensation during calendar year 2024.
Head of School Brian Yager led the executive roster with $719,862 in total compensation, including $475,994 in base pay, a $47,555 bonus, and $119,957 in other reportable compensation (reflecting housing allowance benefits disclosed on Schedule J, Part I). Because no employee crossed the $1 million federal threshold, Harker incurred zero IRC Section 4960 excise tax liability.
Payroll Scale and Compensation Governance
-
•
Total Institutional Payroll: Harker paid $69,313,574 in total employee compensation in FY25 (accounting for 61.0% of all institutional expenses) across 1,021 W-2 employees, with 252 staff members earning over $100,000.
-
•
Top Executive Packages: Head of School Brian Yager earned $719,862 in total compensation, followed by Assistant Head of School Jennifer Gargano ($446,423), Chief Financial Officer Martin Bradford ($440,211), and Director of Advancement Kimberly Lobe ($335,850).
-
•
Compensation Governance & Housing Allowance (Schedule J & O): The Board's Compensation Committee establishes the Head of School's package using an independent compensation consulting firm, peer Form 990 benchmarks, compensation surveys, and a written employment contract, alongside a substantiated housing allowance policy.
|
Form 990, Schedule J, Part II: Compensation Breakdown (FY25)
|
|||||||
|---|---|---|---|---|---|---|---|
| Name & Title (A) | Base Comp (B-i) | Bonus (B-ii) | Other (B-iii) | Retirement & Deferred (C) | Nontaxable Benefits (D) | Total (E) | Prior Deferred (F) |
| Brian YagerHead of School | $475,994 | $47,555 | $119,957 | $27,600 | $48,756 | $719,862 | $0 |
| Jennifer GarganoAsst. Head of School | $391,407 | $11,244 | $270 | $27,627 | $15,875 | $446,423 | $0 |
| Martin BradfordChief Financial Officer | $340,064 | $21,166 | $4,274 | $27,205 | $47,502 | $440,211 | $0 |
| Kimberly LobeDirector of Advancement | $267,849 | $11,011 | $1,280 | $21,428 | $34,282 | $335,850 | $0 |
| Kendricks AllenEmployee | $257,257 | $6,011 | $414 | $20,581 | $37,704 | $321,967 | $0 |
| Paul BarskyEmployee | $252,001 | $1,011 | $1,413 | $20,178 | $34,369 | $308,972 | $0 |
| Kristin GiammonaEmployee | $234,964 | $1,011 | $761 | $18,797 | $48,157 | $303,690 | $0 |
| Steve MartinEmployee | $229,000 | $3,511 | $5,576 | $18,320 | $32,817 | $289,224 | $0 |
Facilities, Debt, and Municipal Relations
Over the past two decades, Harker has utilized $83.23 million in tax-exempt municipal bond issuances to build modern STEM, performing arts, and athletic facilities across its three San Jose campuses—including the Nichols Hall Science and Technology Center, the Athletic Center and Rothschild Performing Arts Center, and the Union Avenue Middle School campus conversion.
In FY25, Harker used its strong cash flow to pay down $6.25 million in bond principal, cutting its outstanding tax-exempt bond debt by 25.2% to $18.53 million while incurring just $389,466 in annual interest expense. Unlike New England boarding academies that make voluntary municipal PILOT payments, Harker reported $0 in Schedule I municipal grants, anchoring its local footprint instead through commercial real estate leasing and contracts with Santa Clara Valley technology, HVAC, and construction firms.
Capital Debt & Municipal Engagement
-
•
Physical Plant & Campus Operations: Harker holds $289.32 million in gross land, buildings, and equipment ($208.46 million net book value after $80.86 million in accumulated depreciation), spending $8.45 million annually on campus occupancy alongside $8.58 million in depreciation.
-
•
Tax-Exempt Bond De-Leveraging (Schedule K): Outstanding tax-exempt bond liabilities dropped 25.2% YoY from $24.78M to $18.53M (alongside $371,946 in capital leases and $389,466 in interest expense) across four historical conduit issues via ABAG ($18.23M in 1998; $20.0M in 2007 for the Science & Tech Center) and the California Municipal Finance Authority ($20.0M in 2015 for the Gym & Theatre; $25.0M in 2020 for the Union Middle School campus).
-
•
Schedule I Town-Gown PILOT Payments & Municipal Relations: Per Form 990 Part IV Line 21 and Schedule I Part II, Harker reported $0 in voluntary Payment in Lieu of Taxes (PILOT) disbursements or grants to domestic municipal governments. Its $208.46 million net San Jose property footprint is exempt under California's 501(c)(3) welfare exemption, while generating $813,984 in gross real estate rental income.
-
•
Top Vendors (16 Contractors Over $100K): The largest independent contractor disbursements went to IT Management Corporation ($2.11M for IT services, Santa Clara), Accel Air Systems Inc. ($1.71M for HVAC services, Santa Clara), Devcon Construction Inc. ($1.49M for campus construction, Milpitas), Performance Foodservice - Ledyard ($1.24M for dining supplies), and Academic Expeditions Inc. ($1.09M for student group travel).
Editorial Note
All financial figures in this report derive from The Harker School's FY25 IRS Form 990 (covering June 1, 2024 through May 31, 2025 across approximately 2,040 enrolled TK–12 students) and have been reviewed by the data team.
While Harker spends $45,360 per student in direct program services ($55,719 per student in total institutional expenses), 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 specialized STEM laboratories, faculty compensation, and college counseling infrastructure that operate alongside Harker's historical matriculation outcomes.
Accounting Reconciliation: Readers comparing Harker's GAAP audited financial statements (Schedule D, Parts XI–XIII) to IRS Form 990 will note differences in both revenue and expenses. Form 990 reports $113,667,167 in total expenses (which reclassifies $9,602,385 in student financial aid grants and $377,650 in investment management fees as operating expenses), whereas GAAP audited financials report $103,687,132 (which nets financial aid directly against gross tuition revenue and nets investment fees against investment return). Similarly, Form 990 reports $136,411,585 in total revenue, while GAAP audited statements report $132,307,898 (which includes $5,289,623 in net unrealized investment gains and $586,725 in endowment appropriations, but subtracts $9,602,385 in tuition scholarships and $377,650 in investment expenses).
Frequently Asked Questions: Harker's Form 990 Financials
As of Fiscal Year 2025, Harker's formal endowment stands at $29.65 million (up 21.4% YoY). Its $586,725 annual endowment appropriation covers 0.52% of the school's $113.67 million Form 990 operating budget (0.57% of its $103.69 million GAAP budget), while its broader $146.72 million liquid treasury of publicly traded securities and cash generated $6.25 million in realized investment income (equal to 5.5% of total operating expenses).
Across approximately 2,040 TK–12 students, Harker spends $45,360 per student annually in direct program service expenses ($92.53 million total; $40,653 per student net of financial aid) and $55,719 per student in overall institutional operating expenses ($113.67 million total). Because gross tuition and fee revenue averages $58,850 per student, tuition inflows fully fund operations and generate a $22.74 million annual surplus.
Harker awarded $9,602,385 in financial aid and staff tuition reductions in FY25 (up 6.7% YoY), supporting 222 recipients—or 10.9% of the student body—with an average grant of $43,254.
Head of School Brian Yager is the highest-paid employee, receiving $719,862 in total compensation in FY25, followed by Assistant Head of School Jennifer Gargano ($446,423) and Chief Financial Officer Martin Bradford ($440,211). Across the entire institution, 252 employees earned more than $100,000 in reportable compensation.
Yes. Because federal law classifies Harker as a 501(c)(3) TK–12 school rather than a college or university, it is exempt from the IRC Section 4968 excise tax on net investment income.
The Harker School's total assets reached $359,590,957 in fiscal year 2025 (up 5.5% YoY), anchored by $208.46 million in net campus real estate and equipment across three San Jose campuses and $146.72 million in cash and publicly traded securities.
Further Reading
High School
June 15, 2026Harker Dominance in Elite National University Placements, Why It Drops Out of Top Three Overall Ranking in Bay Area
Analysis of elite college placement and the Top 25 (T25) National University matriculation dominance of The Harker School
Data Analysis
September 8, 2026Top Private Feeder Schools
Explore the full list of private high schools leading the nation in Top 25 University placements.