Antioch College Alumni Association Proposal for Governance and Fundraising to the University Board of Trustees

August 8, 2007

Antioch College Alumni Association

A Proposal for Governance and Fundraising
to the University Board of Trustees

2007 – 2008
I. Introduction

This proposal was written by a group of alumni on behalf of the Board of Directors of the Antioch College Alumni Association to be presented to the University Board of Trustees in advance of its emergency meeting to be held in Cincinnati, Ohio on August 25-26, 2007. This document represents the alumni commitment to secure the future of Antioch College as an undergraduate, residential, liberal arts college, on its historic campus in Yellow Springs.

This is a good faith effort to save Antioch College. We call upon the University Board of Trustees and all those who care about the College and its unique place in American higher education to assist us with the efforts outlined in this proposal. Remembering the legacy inherited from Horace Mann, Arthur Morgan, and countless others, we assert that Antioch College, having faced financial adversity many times throughout its history, will again thrive.

II. Mission Statement

To rebuild Antioch College as a financially stable and vibrant liberal arts college providing a model education based on its traditional values of academic rigor, celebration of diversity, community governance, cooperative education, free and open inquiry, intellectual freedom, and mutual respect.

III. The Shared Challenge

The Board of Directors of the Antioch College Alumni Association can lead a broad based effort to raise sufficient financial support to ensure the future health of College. This financial support is only available to an Antioch College with independent administrative leadership in charge of its own future and with its own Board of Trustees. The current model of governance has not served the needs of the students and faculty of Antioch College or the University.

IV. Priority Goals

The goals, objectives, and implementation steps below comprise our approach to moving the process of saving Antioch College along quickly in order to avoid prolonging the effects of the proposed closure. These priority goals establish our firm commitment to independent governance for Antioch College and our full acknowledgment that the alumni must take principal responsibility for raising the funds necessary to secure the future of the College.

1. To re-establish Antioch College as the autonomous institution it was for more than 130 years.

Objectives:

A. To transfer governance of the College from the University Board of Trustees to the Board of Directors of the Antioch College Alumni Association on July 1, 2008.

Implementation steps:

1. As instructed by the Antioch College alumni at Reunion and as defined in the unanimously accepted Revival Resolution, our elected Alumni Association Board of Directors is charged with negotiating the transfer of governance with the University Board of Trustees.

B. To secure the assets of Antioch College and separate them from those of the University.

Implementation steps:

1. Obtain an independent and complete audit of the restricted and quasi-endowment, and document any and all restrictions attached to those funds for the use of Antioch College.

2. Identify and negotiate the transfer of all assets historically and programmatically associated with Antioch College on its campus in Yellow Springs, Ohio, including, but not limited to: its historic name and reputation, restricted and quasi-endowment, campus land, campus facilities, auxiliary programs, Glen Helen, WYSO, teaching faculty, staff; and, where deemed appropriate, the assets of all Antioch University campuses where the establishment of those programs and the development of those facilities was achieved with the financial support and direction of Antioch College leadership.

3. Obtain an independent and complete audited financial statement for Antioch College including any and all liabilities that are directly associated with the administration and operation of the College.

C. To establish a temporary Governance and Administrative Transfer Council (GATcil) to negotiate the process with the University Board of Trustees over the next ten months led by the President of the Alumni Association Board of Directors.

Implementation steps:

1. The elected Alumni Board of Directors will determine the size and composition for GATcil and the scope of its duties related to negotiating and preparing for the transfer, including the appointment of the new Antioch College Board of Trustees for July 1, 2008 and the search for a College president to be appointed on the same date.

D. To clarify and define any future relationship of Antioch College with the University, and specifically with University programs in Yellow Springs, Ohio.

Implementation steps:

1. GATcil will negotiate with the University Board of Trustees and the Chancellor of the University, the future of the programs in Yellow Springs. In particular, great effort will be exerted to respect and meet the needs of students, staff, and faculty in all programs.

2. Continue current fundraising efforts while planning for the launch of a comprehensive and sophisticated five-year fundraising program emphasizing capital, annual, and planned giving.

Objectives:

A. To develop fundraising goals based on our aspirations for the future of Antioch College, not simply the present emergency born of the plan for suspension of operation.

Based on study of a cohort of 10 liberal arts colleges of similar stature and with which Antioch College traditionally has shared applications for admission, the Alumni Association projects the need to secure an endowment of $100 million by FY13 to be competitive for students and faculty. However, these projections need to be informed by a transparent and thorough audit and review of the current state of institutional finances.

Implementation steps:

1. The Alumni Association Board of Directors will select a small group of experienced alumni fundraisers to conduct a feasibility study and a specific fundraising plan to be presented at the October meeting of the University Board of Trustees.

2. Alumni Association Board of Directors will investigate the potential value of retaining professional fundraising counsel.

3. Upon successful completion of governance negotiations, fully integrate College fundraising staff and resources with the Alumni Association’s College Revival Fund.

B. Ensure that the current funds raised for the College Revival Fund earn income.

Implementation steps:

1. Form an investment committee of the Alumni Association composed of experienced finance talent who can provide oversight of current funds raised.

V. Other Goals Related to the Transition

During our planning process and in our conversations with supportive alumni and other stakeholders, additional overarching goals emerged for the immediate future.

These goals are:

• To end the continuing damage to the historic and valuable reputation of Antioch College by quickly resolving the issues of governance in order to ensure the uninterrupted continuation of Antioch College as in institution of higher education with a tenured faculty.

• To request that the University Board of Trustees instruct the Chancellor of the University to cancel the plan to establish a “Design and Development Commission” and to cease any present or ongoing efforts to develop or liquidate assets.

• To quickly undertake a concerted effort to repair the damage done to the reputation of Antioch College by developing a comprehensive public relations response to the recent events, presumably by engaging a professional communications firm.

• To undertake a marketplace study in preparation for launching a new and comprehensive enrollment planning model for Antioch College, presumably by engaging a professional admission recruitment marketing firm.

VI. Vision of Antioch College

Having avoided any suspension of operations and having retained its students and fine faculty, Antioch College celebrates the 160th year since its founding in 1852. It is a stable and financially healthy residential liberal arts college ably led and with an enrollment of 800 students and a small but, dramatically increased endowment of $100 million or $125,000 per FTE. The physical plant of the College has been greatly improved through a combination of fundraising and fiscally responsible planning.

The Antioch College curriculum, led by a tenured faculty, provides a rigorous academic program of study in the context of important real-world issues and it exposes students to a variety of transformative processes for positive change. The curriculum is delivered through the three cornerstones of an Antioch College education: academics, co-op, and community.

Antioch College attracts a diverse student body and maintains a civil environment with respectful debate in which students learn how to engage and make meaningful change in the world. An Antioch College that embodies the historic mission of Horace Mann in educating students to win victories for humanity is truly a reality once again.

VII. Business Plan

Under development as of 08/08/07.

Yellow Springs Council Ponders What to Do About Impending Closure of College

By Aaron Keith Harris, Staff Writer, Xenia Gazette. Tuesday, August 7, 2007

YELLOW SPRINGS — Antioch College alumni urged the Yellow Springs Village Council Monday night to join their fight to halt the planned closing of Antioch College next year, while council members discussed how the village should approach an upcoming meeting with the Antioch University Board of Trustees.

Village Manager Erik Swansen and Council President Karen Wintrow were invited to and plan to attend a “stakeholder discussion session” with the university board in Cincinnati on Aug. 25.

The session will be closed to the media and the public and will include only those invited by the university. Earlier the same day, the board plans to have a town-hall style meeting, which is open to
the public.

“I want to find out exactly what it is that’s going to happen and get a handle on the community impact it’s going to have,” said Village Manager Erik Swansen.

Wintrow said she would take the “discouragement of the village” to the Cincinnati meeting, but that the university’s finances, governance and operations “are not issues for Yellow Springs village government.”

Council member Judith Hempfling criticized the Cincinnati meeting as undemocratic, saying village council should have been asked to choose which members to attend. Hempfling also said she was concerned about
the transparency of the process since the stakeholder meeting would be held “in secret.”

Don Wallace, of the Antioch College Alumni Association, presented a letter from his group to council urging them to act to keep the college open and stop the loss of jobs, including those held by tenured faculty.

“If the college is your number one employer, how is that not an issue for council that those jobs continue to exist?” said Rory Adams-Cheatham, a recent Antioch college graduate and current community manager.

Yellow Springs Expects a Tax Loss of $140,000 with Antioch Closing

By Christopher Magan, Staff Writer, Dayton Daily News, Tuesday, August 07, 2007

YELLOW SPRINGS — Village and school officials expect about $140,000 of income tax revenue to disappear when Antioch College closes next year.

The village government will see the biggest loss. Village Administrator Eric Swansen said he expects to lose $100,000 in income tax collections when the college closes its doors next spring and 160 jobs and 300 students leave town.

Yellow Springs raises about $1.25 million each year from a 1.5 percent income tax. The village general fund budget is about $1.5 million.

“It’s obviously a concern that is going to have to be addressed,” said councilwoman Karen Wintrow.

Villagers barely passed an 8.4-mill property tax levy in November 2006 to help the government keep up with growing expenses and aging infrastructure.

Wintrow worries some village amenities could suffer because of the loss of revenue.

“For a community our size we offer a lot of services,” Wintrow said, citing a large park system and one of the area’s few public pools as an example.

The Yellow Springs Exempted Village School District won’t feel the same impact as the municipal government while the college is shut down.

The district, which has a $7.3 million operating budget, raises about $1.2 million a year from a 1 percent income tax.

Superintendent Norm Glismann said the district may only lose $40,000 of income taxes when the college closes.

“That’s if everyone lost their job and moved out of the area,” Glismann said.

Antioch College Alumni Association Agenda for University Board of Trustees Meeting on 8/25/07

Approved by the Alumni Board on its August 2, 2007 Conference Call

We will ask the University Board of Trustees to cooperate with us in good faith on the following:

1. Maintain the on-going operation of Antioch College past June of 2008, even at a reduced level.

2. Keep the College facilities in use, halt steps to shut the College and suspend all consideration of liquidating Antioch College assets

3. Establish a self-governing, independent College Board of Trustees with members initially selected by the Alumni Board in collaboration with the College President and other key stakeholders.

4. Give full consideration to the business plan that the Alumni Board will develop through a planning process and with the assistance of experts in the field, which will be presented in advance of the October University Board of Trustees meeting.

5. Hold a joint Alumni / University BOT meeting in October to discuss the implementation of the business plan and set timelines, tasks and a reporting calendar to assure the robust operation of Antioch College for the next 100 years.

We will also ask that the University Board of Trustees give full consideration to these issues:

* The maintenance and use of College buildings and other facilities
* Potential McGregor bond default if the College is closed
* Impact on College and University accreditation if the College is closed
* Moral, ethical and legal commitment to the Coretta Scott King Center as a core function to be maintained in any reduced level of College operations

Joni Rabinowitz ‘64 talks about Horace Mann and Antioch College

Published by Joni Rabinowitz, August 2, 2007

Joni ’64 was awarded the Antioch College Alumni Association’s Horace Mann Award in 2002. The Horace Mann Award recognizes a contribution by alumni of Antioch College who have won some victory for humanity. She is co-director of Just Harvest, an organization that works to eliminate hunger and poverty by eliminating root causes and changing government politics.

Be Ashamed to Die….

I’m reflecting on the significance of this day — August 2– when one of the leading educators of modern times, Horace Mann, died in 1859. I’m angry that Antioch College, the unique, forward-looking college of which he was the first president, is trying to close its doors.

I attended and graduated from Antioch in the 60’s. During my years there, in addition to receiving a rigorous and stimulating formal education, I had extensive training in “life experience.” I was challenged to live as an adult in this complex world, and not simply to be a cog in somebody’s wheel.

Antioch College has a first-class co-op program which integrates “life experience” — not only job preparation — into the educational mix. I worked in a law firm in San Francisco, a camp for disabled children in Michigan, a hospital in New York, a factory in Ohio, an office for a social work agency in Chicago, and a voter registration effort in Southwest Georgia, as part of the Student Nonviolent Coordinating Committee. (SNCC).

At each of these placements I was expected to do the same job other people did, to interact maturely with others in my environment, and to write a thoughtful paper about the experience.

There’s no question: I would not be the person I am today, had I not gone to Antioch College.

During the early 1800’s, when Horace Mann was the president, Antioch faced financial troubles because it was one of the nation’s first co-educational and interracial colleges, as well as being non-sectarian. Mann employed the first female faculty member to be paid on an equal basis with men.

Horace Mann, a believer in free public education for all, advocated for education of the whole person; he challenged students to act on their values, not simply their intellect.

The current Board of Trustees has made a hasty decision to close — without much internal discussion and no discussion whatever with the rest of the Antioch “community”. It seems to me they ares buying into the trend towards corporatization of education. It seems they want to retain the Antioch name so they can recruit to the University’s 6 other campuses, and give up a commitment to the College and the traditions which define Antioch. They are also joining the nationwide movement to eliminate tenure for professors. Many of the Antioch faculty have labored long and hard at relatively low pay, in order to teach at Antioch.

In the many years since my graduation, I’ve heard that the college was having financial problems, but I’ve never been told that it was ready to close. I’ve never been asked to contribute to keep the college open. I know many of my fellow alums agree.

We may not all have been big contributors — since our education prepared us to “win a victory for humanity,” rather than to become millionaires– but nobody knew anything about this closing.

We can’t let Antioch close.

Today, more than ever, we need the robust and creative thinkers that Antioch College trains, in order to save our civilization. Today the world needs the diverse and multi-disciplinary thinking Antioch instills in its students. Horace Mann’s motto, and the motto of the college, is “Be ashamed to die until you have won a victory for humanity.” Today, more than ever, we need to train students to win these victories.

Former Antioch Trustees Want ‘Bold’ Action

Wednesday, August 01, 2007, by Stephanie Irwin Gottschlich, Staff Writer, Dayton Daily News

YELLOW SPRINGS — Seven former Antioch University trustees are appealing to the current board to take a series of “bold” actions at an emergency board meeting later this month, including merging Antioch College with Antioch University McGregor and creating a separate board for the combined school.

In a July 28 letter to board members obtained by the Dayton Daily News, the former trustees said that the college will not successfully reopen unless the board demonstrates its commitment to doing so with “actions no less bold than those it has already taken.”

Those actions include:

Merge the college with Antioch University McGregor, the adult learning institution that offers mostly master’s degrees, also
located in Yellow Springs.

Create a separate board of trustees, with one university trustee appointed as chair, responsible for both the college and McGregor. Ensure that it has representatives for alumni, faculty, staff, Yellow Springs, students, alumni, major donors and include “luminaries in higher education.”

Empowering the new college board to meet specific fundraising and planning goals for the college’s reopening, and to hire and fire the college President.

Launch a development campaign sufficient to cover major capital improvements and competitive faculty wages and establish an endowment of at least $100 million for the college.

Explore viable alternatives to closing the college through consulting turnaround experts in higher education.

Outline plans over the next six months for reopening the college and sustaining it.

Other actions the former trustees requested include putting alumni on the new institution’s board who could immediately and publicly pledge large sums to the college.

“The main point is ‘Go ahead and do something that everyone thinks should happen,’ ” said Dan Kaplan, one of the trustees who signed the letter, in a separate interview Tuesday.

Kaplan served on the university board from 1995 until 2006, and as chair from 2002 until 2005. “There’s an upside to taking a kind of bold step that’s really an act of good faith with all the stakeholders,” he said.

In a response letter on Wednesday, current board chair Arthur J. Zucker said the board will carefully evaluate the letter’s “creative suggestions” while “also considering the financial implications.”

“We will continue our due diligence through careful review and deliberation, balanced with the need for urgency of all issues around the suspension of operations at the College, including those related to governance,” Zucker wrote.

Zucker added the board voted in June to create a governance committee to look at the governance issue, and it will report to the board in October.

“That we have expedited this process speaks to the board’s commitment to tackle the governance issue,” Zucker wrote. “It is important that everyone also understands that (university Chancellor) Toni (Murdock) and I are both strongly committed to resolving the issue of governance honestly and realistically and professionally.”

Kaplan and former trustees Barbara Winslow and Laura Markham wrote the letter. Since then, at least four more have added their names to it – including two additional previous board chairs – and others are planning to sign it, according to Winslow. Winslow, the longest-serving board member at 12 years of service, stepped down a month ago following the board’s June 12 decision to close the college in 2008. Winslow had reached the maximum term limit allowed for trustees.

The letter joins a movement to make Antioch College autonomous—either outside the university system, or within it–in order for it to survive.

The Antioch College Alumni Association, hoping to negotiate with the trustees for many of the items in the July 28 petition letter, is serving as an agent for $625,000 in cash and pledges called the College Revival Fund targeted at keeping the college open.

Rick Daily, treasurer for the fund and for the alumni association, said “in addition there are expressions of interest in contributing to a revived, self-governed Antioch College that are in excess of $2 million.”

College President Steve Lawry, who announced last week he will resign at year-end, meanwhile has increased his call for a separate board responsible for advocating sand raising money solely for the college.

“And we’re saying [Lawry’s] actually right,” Kaplan said. “Let’s bite the bullet and do it. Time is of the essence here. Move forward boldly here or wake up in five years to nothing.”

Zucker told the former trustees in his letter the board must fulfill its fiduciary responsibility to the entire university, but has a related commitment “to ensure that our college students receive the education and undergraduate experience they deserve.”

Contact this reporter at (937) 225-7404 or
sgottschlich@DaytonDailyNews.com.