How School Culture Shapes Income Generation and Fundraising: Part One

Have you been told to “find more income” or “do more fundraising”? Justin Smith shares practical advice on how to make income generation part of your school’s culture, rather than a knee-jerk reaction

School budgets are under intense pressure. Most leaders have been told at some point to “find more income” or “do more fundraising” on top of everything else. It is tempting to jump straight to quick ideas – a new grant application, a sponsored event, increased lettings hire – without asking a more fundamental question: does our culture actually support this?

In practice, the biggest differences in income generation for schools are often not about who has the best idea or the most polished funding bid. They are about how people think, talk and make decisions together. Organisational culture – the unwritten rules of “how we do things here” – can quietly enable sustainable income generation or make school fundraising feel impossible.

This article explores what that culture looks like in a school setting, how it helps or hinders income generation, and what leaders can do to shape it.

What We Mean by Organisational Culture

Organisational culture is not a policy document or a strapline. It is the shared habits, assumptions and routines that shape daily life in your school. The Institute of Directors define organisational culture as “shared values, beliefs and assumptions about how people should behave and perform at work, and how decisions should be made.”

In practical terms, culture shows up in:

• How decisions are made and communicated.
• How people respond when someone raises a new idea.
• How openly (and sensitively) funding is discussed.
• Whether staff feel they can speak honestly about pressures and risks.

In some schools, conversations about income generation for schools are kept to a very small group. Funding worries are discussed behind closed doors, and new ideas are seen as extra work rather than part of the core strategy. In others, leaders are clear about priorities, staff understand why additional income matters, and there is a shared expectation that everyone can contribute appropriately to school fundraising.

Culture is not something you can change overnight – but it is something leaders can shape deliberately. We might also like to think of the concept of culture in school by contrasting it with the school ‘climate’. Think of the climate as the window or portal into how culture shows itself in a school. If culture is a school’s personality, then climate is its attitude. Climate can be felt as you enter a room (or school reception perhaps) and is based on perceptions. Shifting the climate of the school can happen quickly, but cultures take time to evolve, and any change is a gradual process.

How Culture Helps – or Hinders – Income Generation

Let’s imagine two fictional schools.

In School A, income generation is seen as “someone else’s job”. Staff are already stretched, so new ideas are met with eye‑rolling or quiet resistance. Leaders feel they must protect people from any additional workload, so they avoid open discussion about funding. Fundraising for schools is limited to the odd sponsored event or last‑minute appeal when funds are short for a particular project or school trip for example.

In School B, leaders are honest about financial pressure without creating panic. Staff understand what the priorities are and how additional income could protect or unlock provision for pupils. Ideas are welcomed, tested against the school’s values and strategic plan, and either parked or taken forward. When a funding bid is not successful, the conversation is about learning, not blame.

The external pressures may be similar, but the cultural conditions are very different. A few factors make a particular difference:

Leadership openness – how leaders talk about funding shapes whether teams feel empowered or helpless.

Psychological safety – people are more willing to suggest opportunities if they will not be criticised for trying.

Clarity of purpose – staff are more engaged when they know what income will be used for and how it links to pupils.

Collaboration – sustainable income generation usually involves governors, staff, parents and community partners, not a lone hero fundraiser.

When these elements are in place, income generation becomes part of how the school improves, rather than an occasional bolt‑on.

This is part one of this article. Part two will feature in April.