Friends, 

I am writing to share some news about an action announced by the Southern Association of Colleges and Schools Commission on Colleges involving Guilford College. The SACSCOC board has continued Guilford in accreditation for Good Cause with Probation and granted an extension of 12 months to achieve compliance with Standard 13.3 (financial responsibility). In addition, the SACSCOC board cited compliance with Core Requirement 13.1 (financial resources) as a concern. Last December the only standard of concern for our accreditor was 13.3.

This means that Guilford, in the near term, will need to address 13.3 as well as 13.1, which is a major standard. In terms of financial responsibility, we are expected to balance our budget for FY25, which ends on June 30, and produce a balanced FY26 financial plan. In terms of financial resources, Standard 13.1 states: The institution has sound financial resources and a demonstrated, stable financial base to support the mission of the institution and the scope of its programs and services. We will be expected to demonstrate that we have sufficient resources to meet our mission. Standards for accreditation are published online. (Core Requirement 13.1 is on page 29 of the document and Standard 13.3 is on page 30.)

We will submit a progress report to SACSCOC early next fall and host a review team visit in October, and in December 2025, we will again make our case to the SACSCOC board. The board will make its final determination about our compliance with 13.3 and its concerns about 13.1 at the December meeting. If we do not resolve the concerns that the board has around standards 13.3 and 13.1, next December, at the conclusion of two years of monitoring and two years of probation, Guilford will be removed from SACSCOC membership and lose its accreditation. We cannot allow that to happen.

Based on the progress we have made over the past year, the plans we have for further improvements and the confidence I have in our faculty, staff and supporters among alumni, families and friends, we are on the way to stabilizing finances and ensuring our sustainability.

When I made a presentation to the SACSCOC board on Friday, Dec. 6, I noted what we have done, what we are doing, and what we will be focused on in the next six months to balance our FY25 budget and achieve compliance with accreditation standards, including:

• Hitting enrollment targets and reducing our tuition discount rate. As we strive to enroll about 400 new students, we are implementing a strategy that is less focused on a high discount rate and other incentives, and more on increasing the amount that students can pay.
• Selling property. We are considering the sale of several properties that are adjacent to our campus and are in discussions around valuations for these properties.
• Addressing Human Resources. Personnel costs are our largest expense and changes and reductions must be considered with the greatest care. We are considering not filling vacant positions, increasing some employee contributions to benefits, implementing a pharmacy rebate initiative, temporarily suspending the College’s contribution to retirement and identifying areas of voluntary and involuntary reductions in force while keeping student services and academic programming at viable levels.
• Calculating depreciation differently. As we consider both cash and accrual accounting, we are looking at depreciation differently to realize expense savings.
• Reclassifying restricted donor endowment funds. Where possible, by reclassifying some funds to unrestricted, we can use proceeds for a broader range of College needs. 
• Adding back adult education programs. Revenue losses are linked to a previous administration’s shift away from the adult program, which peaked at 1,300 students 15 years ago and now is around 50. We are working on strategies to tap this market.

And, in that generating more revenue is as important as any cut we may make, motivating Guilfordians and others for a new level of philanthropic support is critical. Guilford continues to be an excellent investment for donors who will help us sustain our values-based, practical liberal arts education. As a small, private college, we need ongoing enthusiasm and engagement by those who love Guilford and those who may not be as well acquainted but will support our mission. We must leverage gifts not only to close a budget gap but also to achieve long-term sustainability.

This will be hard work, but very meaningful work. As I stated to the SACSCOC board, I am confident that the leadership and community of Guilford College is committed to enhancing our financial position, demonstrating prudence and enhancing our mechanisms for ensuring fiscal responsibility as an institution, and that we will do so earnestly in the near term. 

Warmly,

Kyle Farmbry, J.D., Ph.D.
President