The Hill School Assets Reach $366 Million and Spends $79,032 Per Student as $235.8M Endowment Funds 17% of Operating Budget
By Data Team | Published October 22, 2026
The Hill School's total assets climbed to $366.2 million in fiscal year 2025, backed by a $235.8 million endowment that funds 17.3% of the boarding school's operating budget, according to its latest IRS filing. This financial foundation enables the institution to spend $79,032 per student annually, subsidizing operations while distributing $7.75 million in financial aid.
For families examining elite secondary education, The Hill School's balance sheet demonstrates the resource gap between traditional high schools and premier boarding institutions. Although published tuition and fees bring in approximately $70,546 per student, the school bridges the $8,486 per-student shortfall through dedicated endowment payouts. This subsidization supports 33.2% of the student body on financial aid while maintaining the small class sizes and robust programming essential for its standing in regional placement metrics.
By heavily capitalizing operations through noncash gifts and investment gains—which spurred a 25.2% year-over-year surge in revenue—The Hill School reduces reliance on tuition increases, securing the long-term stability required for nationwide admissions outreach and curriculum development.
Institutional & Governance Profile
Operating out of Pottstown, Pennsylvania, The Hill School functions with a specialized corporate structure designed for long-term fiscal stewardship. Its governance pairs a professional administrative team with a 27-member independent board of trustees, ensuring the school's multimillion-dollar balance sheet aligns with its educational mission.
Institutional Scale and Board Structure
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Founding & Workforce Scale: Founded in 1851 (with formal incorporation records dating to 1920), the school issued 398 Form W-2s to its employees in calendar year 2024 and engaged 0 documented volunteers.
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Executive Leadership: Head of School Kathleen Devaney oversees institutional strategy alongside Treasurer and CFOO Richard Wood.
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Governing Board (Schedule O): The board features 27 voting trustees, all of whom maintain independent status, led by Chairman James L. Alexandre.
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Voting Dynamics: All 27 independent trustees hold full, equal voting privileges across all corporate matters.
Top-Line Financials
The Hill School's balance sheet reflects the robust capital accumulation expected of premier boarding programs. Crossing $366.2 million in total assets during FY25 (July 1, 2024 to June 30, 2025), the institution expanded net assets by 8.2% while concurrently shrinking its total liabilities, fortifying its operational resilience.
Balance Sheet Strength
- Total Assets $366,258,558 (+5.9%)
- Total Liabilities $49,252,674 (-6.9%)
- Total Net Assets $317,005,884 (+8.2%)
- Donor-Restricted Net Assets $186,102,251 (58.7% of Total Net Assets)
- Unrestricted Net Assets $130,903,633 (41.3% of Total Net Assets)
Operating Performance
- Total Revenue $66,765,203 (+25.2%)
- Total Expenses $57,668,094 (+3.3%)
- Operating Surplus $9,097,109 (+465.0%)
- Unrealized Gains (Excluded) $14,943,719
Note: The $9.1 million reported operating surplus reflects standard Form 990 accounting parameters; adding the $14.9 million in unrealized investment gains captures the full scale of The Hill School's net asset growth.
Revenue Breakdown
A key element of The Hill School's financial architecture is strong revenue diversification. While tuition provides core operational funding (55.7% of total revenue), aggressive philanthropy—specifically a massive 152% surge in annual contributions—and investment yields supply the critical capital needed to maintain the school's elite residential model.
Primary Revenue Streams
FY25 Revenue Distribution
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Program Service Revenue Up 1.7% YoY$37,211,147 (55.7%)
- Tuition & Fees $37,177,925
- Summer Athletic Camps $36,220
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Contributions & Grants Up 152.0% YoY$19,996,156 (30.0%)
- Noncash Stock Gifts $7,483,444
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Investment Income Up 6.1% YoY$9,241,861 (13.8%)
- Dividends & Interest $4,844,377
- Realized Capital Gains $4,397,484
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Other Revenue$316,039 (0.5%)
Endowment Performance and Asset Allocation
The Hill School manages its $235.8 million endowment with institutional sophistication. The portfolio leverages significant allocations in private equity and real estate partnerships to supplement its publicly traded holdings, targeting long-term capital appreciation over conventional fixed-income yields.
Because The Hill School qualifies as a secondary educational institution under federal tax law, the school is fully exempt from the IRC Section 4968 endowment excise tax on net investment income. This allows all investment gains to compound internally without federal drag, maximizing the payout applied toward academic operations.
Portfolio Performance & Asset Allocation ($232.1M Total Holdings)
Schedule D, Part X Allocation
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Endowment Balance (EOY): $235,840,002 (up 11.2% YoY), representing $447,514 per regular-session student.
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Net Investment Gains: $23,078,805 generated by the portfolio during the fiscal year.
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Alternative Asset Strategy: Over 35% of the total investment portfolio is deployed in private equity and real estate partnerships, distancing operations from public market volatility.
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Total Payout: $9,954,112 ($7.05M applied to operations and facilities; $2.90M strictly to grants and scholarships).
Detailed Asset Mix
5-Year Endowment History
Evaluating the five-year trajectory of The Hill School's endowment across Schedule A and Schedule D, Part V underscores its aggressive expansion. From a $163.1 million baseline in FY21, the endowment generated substantial investment returns, notably a $42.4 million jump in FY21 and $25.1 million in FY24, easily offsetting the FY22 market contraction. Over five years, the endowment dispersed $41.8 million toward scholarships and programs while expanding its total balance to $235.8 million, structured dynamically across permanent (37.26%), term (35.48%), and board-designated quasi-endowment (27.25%) funds.
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 | $212,069,198 | $194,574,885 | $187,714,147 | $210,000,530 | $163,082,007 |
| 1b. Contributions | $10,646,111 | $2,549,474 | $3,875,513 | $913,875 | $11,933,442 |
| 1c. Net investment earnings | $23,078,805 | $25,144,537 | $12,225,125 | ($15,687,858) | $42,430,681 |
| 1d. Grants or scholarships | ($2,901,888) | ($2,737,843) | ($2,525,309) | ($2,254,943) | ($2,161,505) |
| 1e. Other expenditures | ($7,052,224) | ($7,461,855) | ($6,714,591) | ($5,257,457) | ($5,284,095) |
| 1f. Administrative expenses | $0 | $0 | $0 | $0 | $0 |
| 1g. End of year balance | $235,840,002 | $212,069,198 | $194,574,885 | $187,714,147 | $210,000,530 |
Per-Student Spending and True Cost
Assessing total instructional spending against basic tuition revenue maps the true economic advantages of a premier boarding school. At The Hill School, tuition and fees alone cover only a fraction of the actual operating costs per student.
Because the school outspends baseline tuition revenue by over $8,400 per student, families receive substantial hidden subsidies. This surplus funds exceptional faculty ratios, 21 Advanced Placement courses, campus arts structures like the N.C. Wyeth collections, and deep institutional financial aid integration.
Operations vs. Revenue
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Regular Session Program Spend: $41,650,021 spread across 527 students ($79,032 gross spend per student).
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Tuition & Fee Revenue: $37,177,925 ($70,546 average per student before financial aid discounts). Endowment distributions and philanthropy bridge the $8,486 per-student funding gap.
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Campus Collections & Academic Structure: Employs a 7:1 student-to-teacher ratio serving 527 total students, supported by campus arts structures including the N.C. Wyeth collections and Audubon prints.
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Auxiliary Operations: Bookstore operations generated $164,724 in revenue against $185,812 in cost of goods sold.
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Summer Programs: Summer athletic camps supplemented academic year revenue by generating $36,220 in program revenue.
Financial Aid: How The Hill School Spends $7.75M on Access
To maintain socioeconomic diversity within its residential community, The Hill School detailed significant financial aid allocations on Schedule I. The academy granted over $7.74 million in direct domestic financial aid to ensure top-tier academic programming remains accessible regardless of familial wealth.
Unlike some peer institutions that itemize wraparound noncash aid or direct cash stipends, The Hill School focuses its resources entirely on direct tuition grants to reduce the baseline cost of attendance. By extending funding to nearly a third of the student body, the school buffers against becoming exclusively available to full-pay families, aligning directly with its non-discriminatory commitments.
Internal Student Support
- Aided Student Share 33.2% (175 students)
- Total Tuition Grants $7,746,987
- Average Grant per Student $44,268
- Wraparound Noncash Aid $0
- Direct Cash Stipends $0
Outreach & Aid Administration
- Aid Methodology Need calculations are verified utilizing SSS by Princeton, factoring in federal tax returns to objectively determine equitable grant distributions credited directly to tuition billing.
Executive Compensation and Governance
The Hill School maintains a highly structured approach to senior leadership retention and compensation governance. In FY25, total institutional payroll constituted $23.4 million, anchoring 40.6% of all operational expenses. The highest recorded outlay went to former Head of School Zachary Lehman, reporting $694,668 through alternative/severance channels. Current Head of School Kathleen Devaney reported a balanced $526,860 compensation package.
To prevent operational drift, compensation levels are established via independent comparable data drawn from 40 competing boarding schools. Packages for the Head of School and senior trustees are formally reviewed and approved by the board chair, shielding the process from internal conflict.
Payroll Scale and Compensation Governance
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Total Institutional Payroll: The school paid $23.42 million in total employee compensation in FY25 (accounting for 40.6% of all institutional expenses) across 398 W-2 employees, with 38 staff members earning over $100,000.
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Top Executive Packages: Former Head of School Zachary Lehman received $694,668, while current Head of School Kathleen Devaney earned $526,860. Treasurer & CFOO Richard Wood received $388,836.
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Housing & Benchmarking: Several executives receive non-taxable benefits including on-campus housing. Base pay frameworks explicitly utilize market survey data from 40 national boarding school peers to guarantee equitable retention practices.
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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) |
| Zachary LehmanHead of School - Former | $0 | $0 | $694,668 | $0 | $0 | $694,668 | $0 |
| Kathleen DevaneyHead of School | $392,217 | $0 | $33,010 | $44,850 | $56,783 | $526,860 | $0 |
| Richard WoodTreasurer & CFOO | $272,937 | $0 | $26,323 | $40,015 | $49,561 | $388,836 | $0 |
| Christian P. SockelAsst. Head for Advan | $224,146 | $0 | $36,500 | $33,103 | $9,659 | $303,408 | $0 |
| Thomas Eccleston IVAsst. Head for Enrol | $142,356 | $2,500 | $31,296 | $23,599 | $49,826 | $249,577 | $0 |
| Dr. Kristin SpencerMedical Director | $167,226 | $0 | $31,698 | $14,007 | $31,847 | $244,778 | $0 |
| Ariel BaumAsst. Head for Community | $147,545 | $0 | $15,501 | $18,018 | $37,449 | $218,513 | $0 |
| Collin R. WoodSr. Dir. Campus Ops | $166,868 | $0 | $7,255 | $12,188 | $11,403 | $197,714 | $0 |
| Scott FaulkinghamAsst. Treasurer & Cont. | $150,033 | $0 | $7,464 | $15,557 | $15,845 | $188,899 | $0 |
Facilities, Debt, and Municipal Relations
Maintaining historical New England and Mid-Atlantic real estate requires immense capital bandwidth. To fund infrastructure enhancements, The Hill School actively utilizes the tax-exempt municipal bond market, locking in low-interest debt to upgrade campus facilities like the dining hall while preserving internal endowment liquidity.
By issuing bonds through local authorities, the school leverages its financial health for campus growth. Recognizing the impact of its tax-exempt footprint on the local area, the institution also facilitates targeted municipal engagements to support the broader Pottstown community.
Capital Debt & Municipal Engagement
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Physical Plant Operations: The Hill School maintains $164.5 million in gross physical property and buildings ($109.4 million net book value after depreciation), recording $5.91 million in annualized depreciation against program services.
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Tax-Exempt Bond Structure: The school holds $39.8 million in end-of-year tax-exempt bond liabilities. This debt is anchored by Series 2015 and 2017 bonds issued via the Montgomery County Higher Education and Health Authority for campus construction and dining hall renovations.
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Town-Gown Municipal Support: Navigating its tax-exempt status in the region, The Hill School documented a $20,000 good faith Payment in Lieu of Taxes (PILOT) to the Pottstown Area Economic Development Corp.
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Top External Vendors: The largest contractor disbursements flowed to Sodexo Food Service ($3.38M), Vonbrong Builders LLC ($610K), and Donnelly and Sons LLC ($533K) to sustain campus infrastructure.
Editorial Note
All financial figures in this report derive from The Hill School's FY25 IRS Form 990 (covering July 1, 2024 through June 30, 2025 across 527 enrolled students) and have been verified by the data team.
While The Hill School spends $79,032 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, financial aid initiatives, and academic programming that operate alongside the school's historical matriculation outcomes.
Accounting Reconciliation: Readers comparing The Hill School's audited financial statements to IRS Form 990 will note a difference in total expenses. Form 990 reports $57.67M (which records $7.75M in financial aid grants as an operating expense), whereas GAAP audited financials report $49.68M (which nets financial aid directly against gross tuition revenue).
Frequently Asked Questions: The Hill School Form 990 Financials
As of Fiscal Year 2025, The Hill School's endowment stands at $235.8 million, funding 17.3% of the school's total operating budget.
The Hill School spends an average of $79,032 per student annually in gross program expenditures, which exceeds the $70,546 average tuition and fee revenue per student. Annual endowment distributions and gifts bridge the gap.
The Hill School disbursed $7.75 million in total financial aid in FY25, supporting 175 recipients (33.2% of its student body) with an average grant exceeding $44,000.
The highest-paid individual in FY25 was former Head of School Zachary Lehman, reporting $694,668. Current Head of School Kathleen Devaney earned $526,860 in total compensation.
Yes. Because federal law classifies The Hill School as a secondary school rather than an institution of higher education, the academy is exempt from the federal IRC Section 4968 excise tax on net investment income.
The Hill School's total assets reached $366.2 million in fiscal year 2025, primarily anchored by its endowment and substantial net campus real estate.
Further Reading
High School
October 8, 2026How does The Hill School Compare to Philadelphia-Area Private Schools
Analysis of The Hill School's college placement data, examining its T25 pipelines, T15 LAC footprint, and its performance against Philadelphia and New Jersey boarding peers.
Data Analysis
October 9, 2026The Eight Schools Association and Ten Schools Admission Organization: Billion-Dollar Endowments and the Pipeline to Elite College
Analysis of college placement data across the nation's premier boarding consortiums: the Eight Schools Association (ESA) and the Ten Schools Admission Organization (TSAO).