News & Insights

A small private college in Virginia has closed; could this mean anything for your school?

Saint Paul’s College, founded in 1888, will close this month following a failed attempted merger with another institution.

Moody’s Investors Service commented on the closure. “The pending closure is credit negative for a small subset of the higher-education sector with similar attributes to Saint Paul’s and other closed colleges: very small, private colleges with a high reliance on student charges, indistinct market positions, and limited donor support,” Moody’s analysts said. “We anticipate more closures for these types of colleges given the current pressures on all higher-education revenue sources and increased accreditation scrutiny.”

In 2012, consulting firm Bain & Company found that a third of nearly 1,700 public and private nonprofit colleges were on an “unsustainable financial path” and that an additional 28 percent were “at risk of slipping into an unsustainable condition.”

Eva Bogaty, a member of the Moody’s higher-education and not-for-profit team, cautions that schools need to find more efficiencies, and that some should consider mergers and sharing services. 

She also mentioned faculty members. “The elephant in the room is obviously faculty and the shared-governance structure,” Ms. Bogaty said. “How do you deal with that? There is no way that you can operate in the environment that we are in without a major shift in that shared governance.”


Image by Andrew Miller

Top Topics

Roles & Responsibilities

Challenges

Opportunities

Board Essentials

Upcoming Events

The In Trust Center hosts learning community spaces throughout the year. Check out our upcoming events below.

Conflict + Crisis: Navigating the Shoals, Part 2 – A Deeper Dive

Thursday, February 15, 2024, 1:00 p.m. (ET)

Presenter Donna Alexander, President & CEO of Advoxum Global Strategies, offers best practices for navigating conflict and crisis. She examines the crucial elements of defining conflict and crisis, identifying, and prioritizing affected stakeholders, utilizing effective communication strategies, and ultimately, executing a plan of action. Click here to register.

In Trust Center Resource Grants

FEBRUARY 22, 2024, 1 PM (ET)

An In Trust Center Resource Grant offers member schools a chance to explore innovation at their institutions through a matching grant opportunity of up to $15,000. Join us for this 30-minute information session, including Q&A, as we provide details on eligibility requirements, funding priorities, application process. Previous grantees are eligible to apply as long as they are not within our current funding cycle. Click to register.

Conflict + Crisis: Navigating the Shoals, Part 1

ON DEMAND

Presenter Donna Alexander, President & CEO of Advoxum Global Strategies, offers best practices for navigating conflict and crisis. She examines the crucial elements of defining conflict and crisis, identifying, and prioritizing affected stakeholders, utilizing effective communication strategies, and ultimately, executing a plan of action.

Can’t Find What You’re Looking For?

In Trust Center provides Resource Consulting to our members at no charge. Contact us today and let us guide you to the most helpful resources for your situation.

Contact Us