@Zahavasdad
I do not agree with your premise that if ” a yeshiva was properly run, then students who cannot pay would be kicked out”
A yeshiva with proper business management and a business plan would allocate resources for a projected amount of tuition assistance.
An endowment campaign for both capital items and tuition assistance would be in places. The endowment would be properly invested and the principal not raided. Only the interest would be used for these items.
Too many in the frum world fail to realize that yeshivos are businesses, albeit in the non-profit business of Chinuch. Non-profit does not mean bankrupt or deadbeat. All over America are thousands of non-profit institutions: houses of worship, schools, hospitals, universities with billions of dollars of endowments. They give free tuition, memberships and medical care as needed, but have business plans an management to assure their survival.
For many years I was on the board of a day and high school. It was run by the family of the founding Rabbi/principal. 8 family members had full time jobs and paychecks. The Rabbi died and his son was thrust into the job of Principal/Director. He had no ability besides being a classroom rebbi. His late father had been a master fundraiser, who played on the heartstrings of non-frum Jews in the area to rebuild what the Shoah destroyed (he was a master of guilt). The son could not raise funds or get the bills paid.
The board approached the parent organization in Brooklyn (a Chassidus) out the poor way the school was run (budget woes, declining enrollment, etc.). And was told that since the family was put in place by the previous Rebbe, the son could not be removed.
The school floundered, many MO families who had sent their children there moved them to a competing day school or a Schecter school or moved out of the community. Even the local Orthodox pulpit rabbis pulled their children out.
Today this school no longer has a boys high school and the K-8 and Girls High School are composed of family members and non-frum children.
During the father’s tenure no child was ever kept out due to inability to pay. Now the endowment has been depleted, the school has a bad name in the general Jewish community and its days are numbered.
Had the son been made Menahel upon his father’s death and a professional business manager been put in place this could have been avoided.