Skip to main content

Starting a Church-Based Microschool in Texas

A practical guide for pastors and church leaders considering a church-based microschool ministry.

If you're not sure why church-based microschools matter, read The Case for Church-Based Microschools first.

Time-Sensitive: The Fall 2026 Window​

If you're reading this in January 2026, you have a narrow window to launch for Fall 2026.

The TEFA application window opens February 4, 2026 and closes March 17, 2026. For families to apply for Fall 2026 funding, they need to know about your microschool before the window opens.

20days
12hours
47min
38sec

until TEFA applications open

The Timeline for Fall 2026​

WhenCountdownWhat
Now - Mid January0d 12h 47mLeadership decides if Fall 2026 is realistic
Late January16d 12h 47mAnnounce to congregation
Feb 4 - March 1720d 12h 47mInterested families apply for TEFA
Early April76d 12h 47mFamilies receive funding notifications
April/May106d 12h 47mPlan capacity based on approvals
Summer 2026137d 12h 47mGuide training
August 2026198d 12h 47mLaunch

If this timeline feels too rushed, that's okay. Fall 2027 may be the smarter play. But here's the key insight: families who apply and get approved this cycle lock in TEFA funding for years to come. Once approved, they keep funding until their child ages out of K-12. They can apply now even if your school launches later.

The Ideal Church Profile​

Not every church should rush into this. But some churches are perfectly positioned:

The ideal church for Fall 2026 has:

  • Hundreds of families in the congregation
  • Dozens of families with K-8 children
  • Families who would pay for alternative education even without the TEFA lottery

That last point is critical. TEFA is a lottery. Not every family who applies will be approved in Year 1. The families you want are those committed enough to pay out-of-pocket if they don't win the lottery. They're the ones who will show up regardless.

If your congregation has 10-20 families who would pay $10,000-$15,000/year for a faith-based microschool whether or not they get state funding, you have a viable pilot. TEFA is a bonus that makes it more affordable. It shouldn't be the only reason families participate.

The Policy Window​

Texas is experiencing a convergence of policy shifts, cultural demand, and technological capability that makes church-based microschools more viable than ever before.

Texas Education Freedom Account (TEFA) launches for the 2026-2027 school year:

  • Up to $10,474 per student for those in accredited private schools (85% of statewide funding per student)
  • Up to $30,000 for students with disabilities (with IEP)
  • $1 billion allocated for the first year (~90,000 scholarships available)
  • Family applications open February 4, 2026 (closes March 17, 2026)
  • Program managed by Odyssey (program manager) under oversight of Texas Comptroller

Federal Tax Credit (starting January 2027):

  • Donors receive a dollar-for-dollar $1,700 tax credit for contributions to scholarship organizations
  • No aggregate cap on total credits
  • Texas has opted in

See full policy details →

The Crisis​

The demand side is clear:

  • Texas ranked 38-40th in education for decades
  • Teachers describe the system as unsustainable
  • Parents are actively seeking alternatives
  • Homeschool and private school enrollment has surged post-COVID

The Opportunity​

Demand is coming. Supply isn't ready.

Churches that move now position themselves to serve families who have been waiting for an option that aligns with their values. First movers will shape what faith-based education looks like in Texas for the next generation.

The window is now. The first TEFA cohort (Fall 2026) will set the template. Churches that launch successfully will have case studies, trained Guides, and operational playbooks that don't exist yet. Everyone else will be playing catch-up.

Why Churches Are Uniquely Positioned​

Churches solve the three hardest problems for microschool viability:

1. Free Facilities (If You Own Your Space)​

Most churches have classrooms, fellowship halls, and gathering spaces that sit empty Monday through Friday. A single classroom can serve as a microschool pod.

If your church owns its building: no rent, no build-out, no lease negotiations. Just a decision from church leadership to repurpose existing space.

If your church rents from an external facility, you'll need to factor in those costs and any restrictions from your landlord. The economics still work, but the "free facilities" advantage doesn't apply.

2. Built-In Trust​

Parents already trust their pastor. They've been in community with church members for years. When a beloved elder or longtime member becomes a "Guide" for their children, there's no cold-start problem.

Compare this to a stranger advertising a microschool on Facebook. The trust barrier is enormous. Churches have already cleared it.

3. Congregation as Customer Base​

You don't need to market to find your first 10 families. They're already in your pews on Sunday. Many have been praying for an alternative to their local school situation.

4. Pastoral Covering​

Faith-based education works best under spiritual authority. A microschool operating as a church ministry has pastoral accountability, prayer covering, and alignment with the congregation's values.

This is church-based education, not education with chapel tacked on.

5. Guide Candidates Are Already There​

The ideal Guide isn't necessarily a credentialed teacher. It's someone beloved by the congregation who could give one announcement at church and have 10 families sign up.

Many churches already have this person. They just haven't thought of them as a potential educator.

What a Church-Based Microschool Actually Looks Like​

This is not a traditional school compressed into a smaller building. The model is fundamentally different.

Small Pods​

The right size depends on your students. For general education students, 8-12 per Guide is common. Mixed ages (K-8 typically). Students work at their own pace, not arbitrary grade levels.

For students with IEPs (Individualized Education Programs), smaller is better. Some schools targeting special needs students run 3-4 students per Guide. These kids need more individual attention, but they also bring significantly more funding: $30,000 TEFA per IEP student vs. $10,474 for general ed. The math can work even with tiny pods.

Don't assume you need 10-15 kids to be viable. A Guide with 4 IEP students ($120,000 in TEFA funding) may generate more revenue than a Guide with 10 general ed students ($104,740).

Shorter Days​

4-6 hours instead of 8. Proven adaptive software handles core academic instruction. Humans handle formation, support, and specialized teaching.

Software-Powered Academics​

Adaptive learning platforms (like Prenda) personalize math, reading, and language arts for each student. A 2nd grader and an 8th grader can sit at the same table working at different levels.

The software delivers self-paced curriculum, tracks progress, and provides immediate feedback. This doesn't mean the Guide is passive. The Guide keeps students on track, intervenes when someone is stuck, and provides the human support that makes the system work.

For core academics (math, reading, writing), the Guide is a coach and facilitator rather than a lecturer. But Guides absolutely can teach directly—especially for subjects outside the platform's scope like theology, music, art, or specialized skills. If your Guide is excellent at teaching something, use that gift.

Time for What Matters​

With academics handled efficiently, the schedule opens up for:

  • Spiritual formation: Chapel, prayer, Scripture, worship
  • Character development: Social-emotional learning grounded in faith
  • Real-world skills: Projects, entrepreneurship, community service
  • Play and rest: Kids need unstructured time too

Guides Are Facilitators (But Can Also Teach)​

For core academics, Guides are facilitators rather than traditional lecturers. The platform handles curriculum delivery and assessment. Guides don't need to write lesson plans for math or reading—the software does that.

But Guides can absolutely teach directly when it makes sense:

  • Leading Bible study and theology discussions
  • Teaching music, art, or other enrichment
  • Sharing professional expertise (a retired engineer teaching basic physics, etc.)
  • Running project-based learning activities

Daily Guide responsibilities:

  • Create a safe, encouraging environment
  • Help students set and track goals
  • Intervene when someone is stuck
  • Lead group discussions and activities
  • Integrate faith into every part of the day

Guides can be traditional teachers. Former teachers often make excellent Guides, and their experience is valuable. But traditional credentials aren't required. What matters is character, faith, and the ability to build trust with kids and parents.

Platform Options​

You don't have to build everything from scratch. Platforms exist that provide the infrastructure so you can focus on relationships and formation.

Prenda (Our Current Recommendation)​

See full Prenda profile →

Prenda is a turnkey microschool platform that provides:

  • Curriculum and adaptive learning tools
  • Software for tracking progress
  • Liability insurance
  • Background checks for Guides
  • Invoicing and payment processing (including TEFA scholarship funds)
  • Training and support

What Prenda does NOT provide:

  • The physical space (that's you)
  • The Guide (that's your beloved church member)
  • Faith integration (that's your autonomy)

Texas TEFA eligibility: ✅ Confirmed January 2026. Odyssey (TEFA program administrator) approved Prenda's approach, meaning Prenda microschools automatically satisfy accreditation and the two-year requirement. New Prenda microschools can accept TEFA funds from day one.

Platform fee: $2,199 per student per year for state scholarship students

Billing: Prenda invoices students and pays Guides on a schedule aligned with TEFA disbursements (July 25%, October 50%, April 25%). Prenda aims to pay Guides promptly after funds arrive.

Other Platforms​

We're still researching alternatives. Prenda is currently the platform we know best for the Texas context. Other options exist and may be worth exploring depending on your needs.

Finding the Right Guide​

The Linchpin

The Guide is everything. Not funding, not curriculum, not venue. You can have everything else in place and it won't matter without the right person. The Guide is essentially a school entrepreneur with a calling.

Finding the right Guide is the most important decision you'll make. The short version:

  • Beloved in the congregation - Could they announce on Sunday and have 10 families interested?
  • Faith maturity - Comfortable praying with kids and integrating Scripture naturally
  • Character over credentials - Integrity matters more than teaching degrees
  • Availability and stability - Can commit to school hours for multiple years

Read: Finding the Right Guide → for the complete profile, two common archetypes (frustrated teachers and experienced homeschool moms), must-haves, strong pluses, and watch-outs.

The Counseling Gap​

Guides are facilitators and mentors, not therapists. But kids bring trauma, family crises, and mental health needs that Guides aren't trained to handle. Traditional schools have counselors on staff. Microschools typically don't.

Consider partnering with a fractional counseling service like Red Jay Guidance & Counseling. One counselor serving multiple schools. Part-time availability. Someone who knows your students, can train Guides to recognize warning signs, and can step in when a child needs professional support.

For faith-based schools, this matters even more. A spirit-filled counselor can integrate prayer, speak Scripture, and approach mental health from a kingdom perspective.

No Two Church-Based Microschools Are the Same​

Your church has a unique identity, and your school should reflect it.

A church led by a gospel artist might emphasize music and worship arts. A church with strong STEM professionals might offer coding and engineering projects. A church with deep counseling ministry might excel at serving kids with learning differences.

Example: Whitestone Church in Austin, led by Grammy-winning artist Tauren Wells, meets at the Crossover facility which has built-in sports facilities. A school there could emphasize both music (given Tauren's background) and athletics (given the facility). The church's existing strengths and infrastructure become the school's distinctive offering.

The platform handles the universal basics (math, reading, writing). Your church provides what makes it unique. Lean into your congregation's gifts and your facility's advantages.

Financial Reality​

Here's honest budget thinking for a church-based microschool. These are rough numbers based on one exploration in San Antonio.

Interactive Calculator

Try the Microschool Funding Wizard → to model your specific situation: student count, venue costs, staffing, and see exactly how much you'd need to raise.

Pricing Strategy: Set Tuition Higher Than You Think​

Counter-intuitive advice: consider setting tuition higher than your first instinct.

Why this works:

  • Families who can afford it will pay it anyway
  • Higher base tuition creates capacity for scholarships
  • You can discount down, but you can't easily raise prices later
  • It signals quality and commitment

Example: Instead of $10,474 (TEFA-only), set tuition at $15,000:

  • Families who can afford $5,000 co-pay will pay it
  • Families who can't afford co-pay get partial or full scholarships
  • You have $5,000/student of flexibility to work with

This is more sustainable than setting prices low and running out of money to help families who genuinely need it.

Revenue Per Pod​

SourceAmount
TEFA scholarship~$10,474/student
Parent co-pay (optional)$0 - $5,000/student
Total tuition$10,474 - $15,800/student

For a pod of 10 students at $12,800 average tuition: $128,000 gross revenue

Costs Per Pod​

ExpenseAmount
Platform fee (Prenda)$2,199/student = $21,990
Guide compensation$55,000 - $75,000
Materials, supplies, devices$3,500 - $5,000
Insurance$2,000 - $3,000
Total costs~$82,500 - $105,000

Net Per Pod​

A single pod could generate $23,000 - $45,500 surplus after Guide compensation and platform fees (assuming ~$12,000-$12,800 average tuition).

This can fund:

  • Church operating expenses
  • Scholarships for families who can't afford co-pay
  • Expansion to additional pods
  • Principal/coordinator role as you scale

Payment Schedule​

TEFA funds are deposited three times per year (not quarterly):

  • July 1: 25% of annual amount
  • October 1: 50% of annual amount
  • April 1: 25% (remainder)

Note the gap: No payment in January. Plan cash flow accordingly.

If a child enrolls mid-year, the amount is prorated based on enrollment date.

Recommendation: Build a 2-3 month cash buffer before launch. Your first deposit arrives July 1, 2026, but you may have expenses before then (Guide training, materials, setup). The October payment is the big one (50%), so cash will be tighter in fall than in winter.

Scaling Math​

PodsStudentsGross RevenueApprox. Surplus
110$104,740 - $128,000$0-$45K
330$314,220 - $384,000$50-$135K
880$837,920 - $1,024,000$175-$360K

At 8 pods, you can afford a full-time principal/coordinator, multiple Guides, and still generate surplus for the church. The range depends on whether tuition is TEFA-only ($10,474) or includes family out-of-pocket ($12,000-$12,800).

Questions to Ask Before Starting​

Before committing, work through these honestly with your leadership team:

Space​

  • Do we have a classroom or meeting room available during school hours (roughly 8am-2pm)?
  • Is it suitable for 5-10 children to learn, play, and eat?
  • Are there safety considerations (pools, busy roads, pets)?

People​

  • Do we have 1-2 beloved members who could serve as Guides?
  • Could that person give one announcement at church and have 10 families interested?
  • Are they willing to go through background checks and training?
  • What happens if the Guide needs to step away?

Families​

  • Do we have at least 10 families with children K-8 who would enroll?
  • Would they pay $10,000-$15,000/year even if they don't win the TEFA lottery? (This is the real test of commitment)
  • Are they committed to this model (not just "trying it out")?
  • Can they handle co-pay if we charge above TEFA amount?
  • Are they aligned with our faith integration approach?

The families you want are those who see this as essential, not optional. TEFA makes it more affordable, but it shouldn't be the only reason they're interested.

Leadership​

  • Is our pastoral team aligned on integrating faith into education?
  • Are we prepared for the administrative responsibility?
  • Who will handle parent communication, enrollment, etc.?
  • What's our backup plan if this doesn't work?

Finances​

  • Can we float 2-3 months of expenses before state payments arrive?
  • Are we comfortable with the financial risk of Year 1?
  • Do we have donors who might seed the launch?

Example: One Church's Exploration​

This is a real exploration happening in San Antonio. Sharing it to make the concepts concrete.

The Vision​

A K-8 school where:

  • Every element is designed for spiritual, intellectual, and vocational formation
  • Students are prepared for heaven and to lead in an AI-transformed world
  • Faith is woven through everything, not siloed into "Bible class"

The Model​

  • Morning (2 hours): Software-powered core academics via Prenda
  • Midday (1-2 hours): Chapel, Scripture, character formation, prayer
  • Afternoon (2-3 hours): Projects, real-world skills, applied technology, service

The Team​

  • Principal: 30+ years transforming at-risk youth, masters in educational leadership, licensed counselor
  • CTO: Tech background, community building experience, AI fluency

The Target​

  • 8 pods across 3 church partners
  • ~120 students total
  • Distributed model from day one (not one big campus)

The Numbers​

  • ~$550K needed for pre-launch runway (salaries, training, buffer)
  • Self-sustaining after July 2026 (~$114K annual surplus at target enrollment)
  • Combination of major donors, crowdfunding, and church partnerships

The Timeline​

  • January 2026: Final church partnership decisions, announce to congregations
  • February 4 - March 17, 2026: Family applications for TEFA
  • April 2026: TEFA notifications, finalize enrollment
  • Summer 2026: Guide training intensive
  • Fall 2026: Launch

The Honest Challenges​

  • Raising pre-launch capital before any revenue
  • Finding and training the right Guides
  • Proving the model works before expanding
  • Managing multiple church partner relationships

Is This Right for Your Church?​

Not every church should start a microschool. Here's how to discern:

Signs It Might Be Right​

  • You have young families actively looking for educational alternatives
  • You have families who would pay for this even without state funding (they're that committed)
  • There's an educational crisis in your local community
  • You have 1-2 obvious Guide candidates already in your congregation
  • Your leadership is aligned on faith-integrated education
  • You have (or can raise) the capital for a 2-3 month runway

The strongest signal: If you announced a microschool pilot next Sunday and 15-20 families raised their hands saying "we're in regardless of whether we get TEFA," you have a viable school.

Signs to Wait​

  • No obvious Guide candidate
  • Limited families with school-age children
  • Leadership disagreement on the approach
  • No space available during school hours
  • Financial instability in the church

The Invitation​

If you're exploring this and want to connect with others doing the same, reach out. This is new territory. We're all learning together.

Sources​

This guide reflects one person's research and exploration. It is not legal, financial, or professional advice. Verify all details with appropriate professionals before making decisions.