Seneca Academy has gone out of business and will be closing its school.
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Anonymous
Ok, thanks. I was actually curious about a few episcopal schools. |
Anonymous
Yeah, we’re looking at Sandy Spring and wish we could see the financials. |
Anonymous
The episcopal schools are generally subsidized by a parish. |
Anonymous
| That’s a shame. I do wonder how these small schools are able to last. I wouldn’t be surprised if we see more closing. |
Anonymous
+1 They serve a need and it is sad to know that many of the small schools may not survive this. |
Anonymous
There really isn't evidence of that. Seneca had problems LONG before the pandemic. One look at their 990s will tell you that. Show me evidence (990s) of other small schools with similar problems. |
Anonymous
| The tuition was extremely low, fundraising was low, and apparently there are quite a few families on financial aid. I wish they would have charged more in tuition. We would have happily paid much more and I imagine at least some other families would have too. It's a great school and it's very sad it's come to this. |
Anonymous
I agree with the tuition piece. I never understood why they were charging around $18K while Barnesville (which is in good financial health) charges more like $25K and most private schools in the area charge $35-40K. |
Anonymous
Hmmmmmm, are you sure about that part? |
Anonymous
Yes. I looked up their 990s because we're considering it. |
Anonymous
Ask them about their enrollment trends over the past five years. They had as many as 250 students. I think it's down to 100 now. |
Anonymous
It's 130. They've never had 250 students, as far as I know. They recently got permission to up their capacity. I actually think they could benefit from Seneca's closing, as there's a lot of overlap between the two schools, in terms of the people they draw from. In any case, low enrollment or not, their 990s show strong financial health. |
Anonymous
Sorry -- I was wrong about the capacity change. But my previous point stands. They remain in fine financial shape and I would bet they gain a good number of students from Seneca. |
Anonymous
| What are the most important signs of financial health in the 990s? Is net revenue more/less important than net assets? |
Anonymous
It's the ratio between revenue and expenses. Essentially, are they taking in more than they're spending? Compare their assets vs their liabilities. I deferred to my husband on this, since he's an executive who has managed large budgets for a long time. He told me it was obvious Seneca had no money -- their expenses were more than their revenues. Said Barnesville is in good shape, despite low enrollment. Remember that these are non-profits, so you're not looking for them to be dealing with huge surpluses. Instead, look for them to have healthy investments and be bringing in more than they're spending. You also want to look at whether the school has an endowment and a dedicated development office. Seneca had neither, which is a huge warning sign. |