Choosing an Education Contractor: A Guide to Assessing Financial and Organizational Capacity

by Heather Clapp Padgette and Rachel Sherman, The Finance Project, August 2006

Using educational contractors to provide specialized services such as special education, instruction for English language learners, teacher professional development, and curriculum development can be a cost-effective strategy for independent charter schools. This guide provides charter school operators with information about the importance of financial viability, such as a contractor’s financial management system, financial stability, and use of diverse and sustainable funding, and organizational capacity of education contractors, including their management and staffing capacity, internal performance analysis, and customer service orientation. guidance on how to assess these concepts. The guide offers guidance on how to assess each of these components, along with tips and tools to help charter school leaders gather information to evaluate potential education contractors’ financial and organizational health.