The Spence School Assets Reach $403 Million, Absorbing Operating Deficit Through Robust Unrealized Market Gains and Ongoing Philanthropic Support
By Data Team | Published October 26, 2026
The Spence School reported total assets of $403.6 million in fiscal year 2025, according to the school's latest IRS filing. A $162.1 million endowment anchors its finances, covering 9.7% of the Manhattan day school's operating budget. This capital enables Spence to spend $80,028 per student annually—surpassing base tuition—while distributing $8.49 million in financial aid.
Spence's balance sheet reveals the financial mechanics of an elite New York City independent school. Tuition and fees generate $68,538 per student, but endowment payouts subsidize every enrollee by $11,490 annually. This operational buffer supports need-based aid for 21.1% of the student body and funds the rigorous academic infrastructure driving the school's high placement on the Elite College Placement Index (ECPI).
Unlike billion-dollar boarding schools, Spence depends heavily on program service revenue. However, its substantial endowment and $208.9 million physical plant provide essential stability, insulating long-term operations from short-term enrollment fluctuations.
Institutional & Governance Profile
Operating as a nonprofit educational corporation, The Spence School pairs a professional executive cabinet with an independent board of trustees. This governance structure stewards its Manhattan real estate portfolio and $162 million investment portfolio.
Institutional Scale and Board Structure
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Founding & Workforce Scale: Founded in 1892, Spence issued 421 Form W-2s in 2024 and engaged 400 volunteers across its operations and alumni network.
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Executive Leadership: Head of School Felicia A. Wilks directs academic and institutional operations alongside Director of Finance and Operations Bruce Orem.
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Governing Board: The board consists of 29 voting trustees. All 29 operate as independent members without external stockholders.
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Governance Dynamics: Trustees independently determine executive compensation using published comparative data, enforce conflict-of-interest policies, and ratify long-term strategic plans.
Top-Line Financials
Spence crossed the $403 million asset threshold in FY25 (July 1, 2024 to June 30, 2025). The school expanded net assets year-over-year, absorbing a calculated operating deficit through robust unrealized market gains and ongoing philanthropic support.
Balance Sheet Strength
- Total Assets $403,673,762 (+1.7%)
- Total Liabilities $61,100,230 (+0.4%)
- Total Net Assets $342,573,532 (+1.9%)
- Donor-Restricted Net Assets $149,709,421 (43.7% of Total Net Assets)
- Unrestricted Net Assets $192,864,111 (56.3% of Total Net Assets)
Operating Performance
- Total Revenue $63,790,851 (+1.1%)
- Total Expenses $71,962,190 (+3.0%)
- Operating Balance -$8,171,339 (-20.7%)
- Unrealized Gains (Excluded) $14,673,530
Note: The reported $8.17 million operating deficit reflects standard Form 990 accounting parameters; incorporating the $14.67 million in unrealized investment gains captures the full scope of Spence's FY25 net asset expansion.
Revenue Breakdown
Unlike institutions leaning heavily on investment payouts, Spence maintains a traditional day school revenue model. Program services generated 84.5% of its $63.8 million incoming cash flow, requiring precise enrollment management to sustain budgets.
Primary Revenue Streams
FY25 Revenue Distribution
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Program Service Revenue Up 6.0% YoY$53,888,585 (84.5%)
- Tuition & Fees $51,952,494
- Afterschool Program $1,000,191
- Music Program Fees $470,587
- Student Fees $465,313
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Contributions & Grants Down 3.6% YoY$5,955,619 (9.3%)
- Noncash Stock Gifts $748,857
- Other Direct Public Support $5,206,762
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Investment Income Down 33.4% YoY$3,175,987 (5.0%)
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Other Revenue Down 41.9% YoY$770,660 (1.2%)
Endowment Performance and Asset Allocation
Spence manages a $162.1 million endowment. While holding 66.3% in publicly traded securities, the school allocates one-third of its assets to alternative investments—primarily private equity and hedge funds—chasing illiquidity premiums.
As a secondary school, Spence is exempt from the IRC Section 4968 endowment excise tax targeting private colleges. This exemption protects net investment returns, amplifying the portfolio's compounding power.
Portfolio Performance & Asset Allocation ($162.3M Total Holdings)
Schedule D, Part VII Allocation
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Endowment Balance (EOY): $162,187,572 (up 6.6% YoY), representing $213,852 per enrolled student.
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Net Investment Gains: $16,290,906.
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Alternative Capital: 33.7% of the portfolio is deployed in private equity and hedge funds to capture illiquidity premiums.
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Total Payout: $6,959,000 distributed to fund regular academic operations and campus facilities.
Detailed Asset Mix
5-Year Endowment History
We mapped the five-year trajectory of Spence's endowment via Schedule D, Part V. From a $109.8 million starting balance in FY21, the endowment captured $62.2 million in cumulative net investment gains and absorbed $9.4 million in direct gifts. Over this window, Spence disbursed $30.6 million to underwrite operations, closing FY25 at a historic $162.1 million. The current balance consists of 59.5% permanent endowment, 32.3% term endowment, and 8.1% 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 | $152,144,734 | $140,272,574 | $139,930,945 | $150,331,851 | $109,817,217 |
| 1b. Contributions | $710,932 | $200,594 | $1,362,898 | $5,188,559 | $2,070,764 |
| 1c. Net investment earnings | $16,290,906 | $18,346,566 | $5,089,731 | ($10,431,969) | $42,975,870 |
| 1d. Grants or scholarships | $0 | $0 | $0 | $0 | $0 |
| 1e. Other expenditures | ($6,959,000) | ($6,675,000) | ($6,111,000) | ($5,157,496) | ($4,532,000) |
| 1f. Administrative expenses | $0 | $0 | $0 | $0 | $0 |
| 1g. End of year balance | $162,187,572 | $152,144,734 | $140,272,574 | $139,930,945 | $150,331,851 |
Per-Student Spending and True Cost
Assessing instructional expenditure against base tuition exposes the intrinsic economic advantage of The Spence School. Even for full-pay families, base tuition offsets only 85.6% of actual per-student operational costs.
Because Spence outspends tuition capture by nearly $11,500 per pupil, it sustains premier academic programming without repeatedly passing the true cost to parents. This built-in financial subsidy recruits top faculty and maintains a $208.9 million physical footprint in Manhattan.
Operations vs. Revenue
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Regular Session Program Spend: $60,661,749 across ~758 K-12 students, equating to an $80,028 gross spend per student.
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Tuition & Fee Revenue: $51,952,494 ($68,538 per student before discounts and financial aid). Philanthropy and endowment drawdowns close the $11,490 per-student gap.
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Campus Real Estate: Supported by $307.4 million in gross buildings and equipment ($208.9 million net book value after depreciation), centralizing its mission around top-tier infrastructure.
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Information Technology: The school invests heavily in modern technological infrastructure, dedicating $1.21 million annually to IT operations.
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Auxiliary Programs: Beyond baseline tuition, Spence generates supplementary revenue through its Afterschool Program ($1.0 million) and Music Program ($470,587).
Financial Aid: How The Spence School Spends $8.49M on Access
Spence upholds its commitment to economic diversity through explicit financial aid distribution delineated on Schedule I. The school dedicates $8.49 million to directly lower tuition thresholds for 160 students, supporting 21.1% of its enrollment base.
By funneling capital directly into tuition reduction rather than treating financial aid merely as an unfunded discount, Spence systematically addresses socioeconomic barriers. This budget fundamentally reshapes the applicant pool, allowing admissions to build highly competitive cohorts untethered from strict capacity-to-pay limitations.
Internal Student Support
- Aided Student Share 21.1% (160 students)
- Total Financial Aid Distributed $8,493,074
- Average Grant per Student $53,081
Board Support Verification
- Board Member Grants ($141,599) Spence provided financial aid to three members of the Board of Trustees, maintaining its policy to offer assistance to all community members with demonstrated need.
Executive and Administrative Compensation
Spence prioritizes faculty and administrative talent retention, allocating $42.6 million (59.3% of total expenditures) toward employee compensation. Head of School Felicia A. Wilks is the highest-paid staff member; her $954,143 total package reflects competitive market rates for leading a $400 million urban institution.
Rather than outsourcing heavily, Spence employs 421 internal staff members. Notably, 134 employees earned over $100,000, underscoring the salary structure required to recruit elite educators within the highly competitive Manhattan private school market.
Payroll Scale and Compensation Governance
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Total Institutional Payroll: Spence paid $42.6 million in total employee compensation in FY25 across 421 W-2 employees, with 134 staff members earning over $100,000.
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Top Executive Packages: Head of School Felicia A. Wilks earned $954,143, while Director of Finance and Operations Bruce Orem earned $579,344 in total compensation.
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Housing Benefit & Retention: The Head of School receives non-taxable on-campus housing as a condition of employment, standard practice among elite prep schools. Additionally, the school funded $60,975 into 457(b) and 457(f) deferred compensation plans.
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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) |
| Felicia A. WilksHead of School | $829,470 | $0 | $0 | $90,417 | $34,256 | $954,143 | $0 |
| Bruce OremDir. Finance & Ops | $533,604 | $0 | $0 | $29,442 | $16,298 | $579,344 | $0 |
| Karen SullivanHead of Middle School | $521,562 | $0 | $0 | $27,600 | $8,532 | $557,694 | $0 |
| Eric ZahlerDir. of Teaching/Learning | $326,996 | $0 | $0 | $30,793 | $26,291 | $384,080 | $0 |
| Michele MurphyDir. of Curriculum | $317,482 | $0 | $0 | $30,043 | $30,798 | $378,323 | $0 |
| Elizabeth CauseyHead of Lower School | $331,476 | $0 | $0 | $30,043 | $16,298 | $377,817 | $0 |
| Dana CrowellCo-Dir. College Counseling | $287,586 | $0 | $0 | $26,744 | $26,291 | $340,621 | $0 |
| Rachael FloresHead of Upper School | $278,830 | $0 | $0 | $24,828 | $34,256 | $337,914 | $0 |
| Jacob KovachDir. Information Tech | $278,165 | $0 | $0 | $25,447 | $31,997 | $335,609 | $0 |
| Constance FicheraDir. of Athletics | $248,418 | $0 | $0 | $21,822 | $16,298 | $286,538 | $0 |
Facilities, Debt, and Municipal Relations
Spence secures tax-exempt municipal bonds to fuel facility expansions across its valuable Manhattan real estate portfolio, preserving its endowment capital for longer-term yield.
Carrying institutional debt linked to capital projects allows the school to renovate premier learning environments without drawing aggressively on liquid assets. In alignment with standard practice among NYC independent day schools, Spence does not issue voluntary Payments in Lieu of Taxes (PILOT) to municipal governments.
Capital Debt & Municipal Engagement
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Physical Plant & Campus Operations: Spence controls $307.4 million in gross property and buildings ($208.9 million net book value after depreciation), anchoring its educational mission within New York City.
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Tax-Exempt Bond Refinancing: The school holds $29.05 million in outstanding tax-exempt bond liabilities, primarily tied to a $30.39 million 2022 issuance through the Build NYC Resource Corporation for campus acquisition and expansion.
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Town-Gown PILOT Payments: The school records $0 in voluntary PILOT payments, fully leveraging its tax-exempt real estate status.
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Top Vendors: The largest independent contractor disbursements went to Sciame Construction LLC ($5.4M) and Building Care Solutions INC ($0.81M) for ongoing campus expansion and maintenance.
Editorial Note
All financial figures in this report derive from The Spence School's FY25 IRS Form 990 (covering July 1, 2024 through June 30, 2025 across approximately 758 regular-session students) and have been reviewed by the data team.
While Spence spends $80,028 per student, 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 faculty, need-blind admissions access, and academic programming that operate alongside Spence's historical matriculation outcomes.
Accounting Reconciliation: Readers comparing Spence's audited financial statements to IRS Form 990 will note differences. Form 990 reports $71.96M in total expenses (which records $8.49M in financial aid grants as an operating expense), whereas GAAP audited financials report expenses net of financial aid adjustments.
Frequently Asked Questions: The Spence School's Form 990 Financials
As of Fiscal Year 2025, The Spence School's endowment stands at $162.1 million. It funds 9.7% of the school's operating budget, reducing its reliance purely on tuition increases.
Spence spends an average of $80,028 per student annually in gross regular-session program expenditures, which exceeds the roughly $68,538 generated per student in baseline tuition and fees. Annual endowment distributions and philanthropy cover the $11,490 per-student difference.
The Spence School disbursed $8.49 million in financial aid grants in FY25, providing support to 160 domestic students, which represents 21.1% of its overall student body.
The highest-paid employee is Head of School Felicia A. Wilks, who received $954,143 in total compensation in FY25, including base salary, retirement contributions, and nontaxable benefits like on-campus housing.
Yes. Because federal law classifies Spence as a secondary school rather than an institution of higher education, the school is wholly exempt from the federal IRC Section 4968 excise tax on net investment income.
The Spence School's total assets reached $403.6 million in fiscal year 2025, anchored by its $162.1 million endowment and $208.9 million in net campus real estate.
Further Reading
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