Sagging endowments and other shrinking revenue streams are challenging the status quo at the nation’s seminaries, most of which aren’t cushioned by a link to an endowed university.
Among the 175 “free-standing” institutions in the Association of Theological Schools, 39% were “financially stressed,” with less than a year’s worth of spendable assets, a fall 2008 report says. That’s up from 26% a year earlier, and the data don’t reflect fallout from the stock market crash in the fall.
Making matters worse, enrollments at ATS schools have dropped 4% since 2006, marking the first consecutive-year decline in more than 20 years. The Association for Biblical Higher Education (ABHE) says enrollments are also down at 60% of Bible colleges, which train undergraduates for ministry.
While giving may be down, the schools and institutions that don;t depend on endowment income for operations may acutally be in better shape right now.
VTS Alums recd this news the other day.
Dean Markham’s Alumni Message for March
“Last month I had to bring the bad news that the Board had instructed me to reduce the salary bill of the institution by a million dollars. Why was this necessary? Simply because our endowment has fallen dramatically. We have gone from a high of 144 million down to 97 million.”
And this press release as a follow up
[i] Alexandria, VA – At the direction of the Board of Trustees of the Virginia Theological Seminary (VTS), the Very Rev. Ian Markham, dean and president, announced layoffs last week in an attempt to reduce salaries and expenses by $1 million. Because nine employees opted to sign up for the Seminary’s early retirement and good retirement (i.e. a phased retirement over three years) plans, the number of persons laid off was limited to six.
Since June 2008, the Seminary has witnessed a dramatic fall in its endowment, and trust funds acting as endowment, with a loss of $50 million. Further deterioration of the stock markets in January and February prompted the Seminary’s Executive Committee to instruct Dr. Markham to reduce the present $12.5 million operating budget (60% of which was committed to personnel) by $1.4 million. [/i]
[url=http://www.vts.edu/news/news/detail.asp?newsid=518978] VTS Press release[/url]
I know it’s sad for the people involved but ISTM the Episcopalians didn’t need 12 seminaries.
[url=http://home.comcast.net/~acbfp/index.html]High-church libertarian curmudgeon[/url]
Just spent 3 days with one of the deans from St Paul’s in London while he laid out plans for St Paul’s and the plans for a church based lay educational center and seminary at St Andrews. Certainly would not require anywhere near the money. St Paul’s in London is on target to produce 20 seminarian graduates p/yr at much less the cost or infrastructure. St Andrews hopes to get to that point within the next few years.