FB: Southern Athletic Association

[The Third Division]

BSC is staying open!!!

LINK??!!

[Pat Coleman]

I was going to say -- how do we expect they will make an announcement? Refreshing various web pages and Twitter feeds.

[The Third Division]

I was going to say -- how do we expect they will make an announcement? Refreshing various web pages and Twitter feeds.

I'm doing the same exact thing.

[Ron Boerger]

BSC is staying open!!!

Source?

Confirmation:  https://twitter.com/vbell_reports/status/1644010054159417344

[Ron Boerger]

I was going to say -- how do we expect they will make an announcement? Refreshing various web pages and Twitter feeds.

They're having a press conference.  The school twitter account is *very* inactive, unfortunately. 

[The Third Division]

If I'm BSC, I'm getting my twitter game going.

[Ron Boerger]

More details:

https://twitter.com/greezbock/status/1644011874944425992

Amazingly, reported a six year high in applications.

Not so good, still only $46M committed of the $200M needed to replenish the endowment; they've been reporting that number for some time now. 

[BSCpanthers]

From the school:

April 6, 2023                                                                                                                                       

Birmingham-Southern College's Board of Trustees voted unanimously Wednesday evening to keep the College open.

"The Board of Trustees has made the informed and thoughtful decision to keep Birmingham-Southern open," said the Rev. Keith D. Thompson '83, chair of the Board. "We have been working closely with our allies in state and local government to secure bridge funding."

"Thanks to their leadership, the Board felt comfortable with moving forward, and has charged President Daniel Coleman with preparing for a public fundraising campaign to restore the College's endowment," Thompson said.

Much work lies ahead for the College, Coleman said. "We are already reaching out to our prospective students and will be hiring faculty and staff to ensure that we are delivering the full BSC experience this fall," he said. "We will also be gearing up for the public phase of the endowment campaign, which will ensure our long-term financial resilience."

Thompson said it is impossible to answer with certainty every question relating to the College's finances until the Alabama legislative session concludes.

"President Coleman and so many others have been working tirelessly to secure the resources needed to take BSC forward. We are especially grateful to the elected officials who have championed this cause because of its impact on Birmingham and Alabama. And we are also deeply grateful for the outpouring of support from our alumni, students, faculty, staff, parents, the business community, and friends who have written, called, emailed, and met with elected officials to help make the case for public support. That has sent a powerful signal about what BSC means to Alabama.

"We will continue to work with legislators through the end of the legislative session to ensure all are aware of the significant direct economic impact BSC provides each and every year, as well as the immense contributions made by our alumni to the civic, business, and political leadership of our state," Thompson said.

The decision comes as the College has experienced a six-year high in applications and has worked to address Alabama's workforce shortage through the addition of undergraduate and master's programs in data science. BSC is Alabama's only nationally ranked liberal arts college and has an annual direct economic impact of $97.2 million on the state, according to an independent study by Dr. Keivan Duravi released in February 2023.

BSC has secured nearly $46 million in pledges from private donors toward a goal of $200 million in endowment and has sought bridge funding from public sources to allow time to finish that campaign. A $200 million endowment will support 20 percent of BSC's annual operating budget, providing the stability needed for the long term.

[jknezek]

Not much new there other than the 6yr high in applications. It will be interesting to see how they convert applications to acceptances. Clearly there is some hope they will get some funding from some level of government. Definitely good news for the current students and I hope it works out.

[Ralph Turner]

"...BSC has secured nearly $46 million in pledges from private donors toward a goal of $200 million in endowment and has sought bridge funding from public sources to allow time to finish that campaign. A $200 million endowment will support 20 percent of BSC's annual operating budget, providing the stability needed for the long term."

Five percent return on $200M is $10M which is 20% of a $50M annual operating budget.
Having done fund raising for a capital campaign for a university long ago and far far away, $46M towards $200M is not much and the "low hanging fruit" has been picked.

[SagatagSam]

More details:

https://twitter.com/greezbock/status/1644011874944425992

Amazingly, reported a six year high in applications.

Not so good, still only $46M committed of the $200M needed to replenish the endowment; they've been reporting that number for some time now.

Glad to see BSC doesn't have to close.

However, I wonder if BSC has it in them to make it to 2026 and beyond. The numbers suggest that things are only going to get worse in higher education. Having these kinds of discussions now does not look good going forward.

[Ron Boerger]

"...BSC has secured nearly $46 million in pledges from private donors toward a goal of $200 million in endowment and has sought bridge funding from public sources to allow time to finish that campaign. A $200 million endowment will support 20 percent of BSC's annual operating budget, providing the stability needed for the long term."

Five percent return on $200M is $10M which is 20% of a $50M annual operating budget.
Having done fund raising for a capital campaign for a university long ago and far far away, $46M towards $200M is not much and the "low hanging fruit" has been picked.

Yep.

First, I'm thrilled B-SC is not closing.  Congratulations to all stakeholders and students.

Second, they've been talking about $45M raised for quite some time; as Ralph stated, they got the easy money.  Now maybe the fact they aren't closing will help close another few big donations, and perhaps that was a condition for some donors, but given that the school said it wouldn't try to collect until they got all $200M, maybe not.

Third, for the last several months it's been "we need $30 million in bridge funding to keep the plane flying while we raise $200M in endowment commitments."  There's utterly no mention in the release that they got any bridge money from any source, so where is B-SC getting the operational funds needed for the next year?   Is the school right back in the same situations come next December?

Fourth, a "public phase of the endowment campaign" - seems like they've been pretty public about it already.  I would have used different wording.

As jknezek mentions, they almost certainly have to feel that some money will be coming from some government source.  Perhaps they received assurances from the Birmingham City Council that funding would be granted later this month if the school remained open, because the state's not doing diddly. 

Here's hoping my naturally pessimistic nature is totally off-base and that the school is successful in raising the funds needed to become healthy.

[BSCpanthers]

The state is no longer a "No" for funding.  There has been a big push to get some of those "no"s, to "maybe" to some "yes"s. I think there is some confidence that some funding will come from the state.  The city has said they would support BSC but tabled it until they figured out if the school would continue.  So hopefully that means BSC will get so,e thing from the city and county.  We will find out. 

[SagatagSam]

The state is no longer a "No" for funding.  There has been a big push to get some of those "no"s, to "maybe" to some "yes"s. I think there is some confidence that some funding will come from the state.  The city has said they would support BSC but tabled it until they figured out if the school would continue.  So hopefully that means BSC will get so,e thing from the city and county.  We will find out.

The capital campaign of $200M sounds like a lofty goal, and relying on the public coffers (whether it be state, county, or municipal) does not sound like a long-term recipe for success. Even though BSC has survived for now, there is a scent floating around that has a hint of inevitability.

I hope for all the best for BSC, but wonder if the buzzards are starting to circle.

I would have to think other schools will seize on this near closure event in their direct conversations with prospective students--
"Where else are you considering besides our fine institution of higher learning?"
"Oh, Auburn, UAB, Samford, and BSC."
"You know BSC was having a heckuva time deciding if they were even going to stay open a few months back! It was all over the news!"

I think college recruiting is about to become one of the most cutthroat industries we've ever seen.

[Ron Boerger]

State may provide a secured loan (and allow other colleges to take out similar loans) in lieu of outright funding:

https://www.al.com/news/2023/04/alabama-house-speaker-says-loan-possible-for-birmingham-southern.html