Dive Brief:
- After warning in March of potential closure, Northland College will stay open for now but declared financial exigency, the board of trustees announced Thursday evening. The board said it would make “a final decision” about the college’s future in two weeks.
- In declaring exigency, Wisconsin-based Northland is formally recognizing a “serious financial crisis,” the board said. The process will focus on a new structure for the college, engagement with donors and the institution’s budget options, which would likely include cuts to staff and programs.
- Northland had set a $12 million fundraising goal with an April 3 deadline. Northland fell well short of the target but managed to raise $1.5 million, a record for the college, from 900-plus donations in less than a month.
Dive Insight:
Northland is set to stay open through the current academic year without changes to its programs, the board said.
But it’s not out of the woods yet.
“I also want to caution that Northland’s circumstances remain incredibly serious and significant progress will be needed in the next two weeks to avoid closure,” Ted Bristol, the college’s board chair, said in a statement.
Northland President Chad Dayton also acknowledged in the announcement that the latest update creates uncertainty for students and others who are waiting for a final decision.
The college set its April 3 deadline to help current and future students make enrollment decisions for the fall, given the disruption a college closure can cause.
Dayton and the board have also pointed to feedback and ideas from stakeholders about the college’s future and potential closure.
“We are listening and agree that additional time and a defined process are valuable next steps,” Dayton said. “Financial exigency provides that but also will require crucial conversations and difficult decisions.”
The college will work with faculty as well as campus and community groups in the coming days to “refine a new structure, explore budget options and adjustments and determine additional funding possibilities,” the announcement said.
Northland was founded in 1892 by members of the United Church of Christ. Today, the college touts its environmental and sustainability-focused programming. It’s accredited by the Higher Learning Commission.
From fall 2017 to fall 2022, undergraduate enrollment at Northland fell 18.4% to 518 students, per federal data. According to Northland’s most recent tax forms, it ran a $3.2 million deficit in fiscal 2021. Revenues fell nearly $700,000 short of expenses in the year prior.