Evangel – Christmas 2011
How is ABC doing financially?
The report from our auditors indicates that we finished the 2010/11 fiscal year with an operating deficit of $240,000. For only the third time in our history we sent a ‘crisis’ appeal letter to our supporters in July. Our board policy is to not fund raise by this means but an exception was made in this unusual situation.
How did this happen?
Some would call it a perfect storm of factors coming together. The economic downturn resulted in lower than usual investment returns, which then requires our general fund to make up shortfalls for committed expenditures. Also, as our traditional base of support leaves the workforce and is on fixed incomes, the general health of the economy also impacts their ability to give at the levels they would like. Declining enrolment in our freshmen class for the past few years carries the financial impact through for potentially four years and in PACE for two years. Finally the change in administration two years ago resulted in an additional faculty member.
Is ABC solvent?
Absolutely! Although we have a deficit of $240,000 and a capital debt of $156,000 due to work on the roof and repaving the parking lot, we have over $1.4M in investments and a campus worth in excess of $5M. However this is a very serious situation for us that must be remedied immediately.
What is the College doing?
We have reduced our staff positions by two and have reassigned responsibilities. We are reviewing distance learning opportunities with the goal of creating a number of options for delivery of service for those who are off campus. The Board of Trustees, with input from the staff, is evaluating how to better provide Christian higher education.
How is the College funded?
At present we have four income sources: donations (50%), tuition (34%), rentals (10%), and investment interest (6%).
What can I do?
A special gift prior to the end of 2011 is very much appreciated. We value the partnership that we have with many individuals and churches across Canada and in the United States.