“In NYC area, the jewish schools get ZIP, NADA, BUPKAS from the federation, each school is on its own to raise the money”
Sorry, to disagree. I live in Fairfield County, CT…which is the NYC area. For example, the following Day Schools receive funds from Jewish Federation of Stamford: Bi-Cultural Day School (Stamford), Carmel Academy (Greenwich), Jewish High School of CT (Stamford), Gan Yeladim (Chabad pre-school Stamford).
In New Haven, where I was born and raised, Federation provides financial support (and has for more than 4 decades) to both Southern CT Hebrew Academy/Bais Chanah )Lubavitch and Ezra Academy (conservative).
Bridgeport no longer has a day school, but when it functioned Hillel Academy received funding from Federation.
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UJA Federation NY does not directly fund day schools, but allocates $1 MIllion per year for day school scholarships. Parents may apply to Federation directly for these funds.
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Outside Metro NYC in CT. Day schools/Yeshivos in the Hartford area, Waterbury, Danbury, New London receive funding from local Federations. The OOT Jewish community as a whole understands the importance of these institutions and that they should be available and be funded, not just by the orthodox community.