Covid-19, nonprofit college, college, higher education
Private nonprofit colleges have experienced an increasing amount of financial pressure over time, making it arduous to survive. Internal and external factors such as geographical challenges, lack of economies of scale, and unchecked board mismanagement have historically led to the closures. COVID-19 is accelerating the rate of these college closures. Diminishing enrollment, volatile endowments, and inoperable revenue programs are some of the reverberations the virus has caused.
Preventative measures need to exist to alleviate the risks of unforeseen crises in the future. Harsher penalties, increased scrutiny of automatic extensions, and more accurate and complete Form 990 disclosures will protect stakeholders from board member malfeasance and crises in the future. Forms 990 that are more quickly released to the public, error-free, and more detailed will assist stakeholders in making timely investment decisions.
Baker, Patrick; Hearn Moore, Paula; Byars, Kaleb; and Aden, Christie
"Covid Closing Down Colleges: How the Covid-19 Pandemic Accelerated Nonprofit College Closings,"
BYU Education & Law Journal: Vol. 2020:
2, Article 4.
Available at: https://scholarsarchive.byu.edu/byu_elj/vol2020/iss2/4