Diane Hendricks, three others
resign from Beloit College board of trustees
Devi ShastriBill GlauberDaniel Bice
Milwaukee Journal Sentinel
0:13
1:00
In a stunning blow to Beloit College's fortunes, billionaire businesswoman and philanthropist Diane Hendricks and three others abruptly resigned from the school's board of trustees.
No reason was given for their departures in a statement released Thursday by the school.
The news comes at a time of financial uncertainty for the 174-year-old college, as it navigates reopening during the coronavirus pandemic and years of fluctuating enrollment. In 2018 and 2019, the school received about $11 million in donations from board members and employees, according to the college's June 2019 financial report.
The other board members to leave were Jim Packard, Chuck McQuaid and Jim Sanger. None of the four responded to Milwaukee Journal Sentinel interview requests.
"After many years of support, including completing the Powerhouse student union and recreation center project, and helping Beloit College finalize a new five-year financial plan, four Board of Trustees members have decided to step down from their official duties," said the statement from Elizabeth Conlisk, the school's interim chief communications officer.
Conlisk added: "We thank them for their invaluable service. All have been exceptionally generous with their time, talent, and treasure. All fully understand the importance of an even stronger relationship between the City of Beloit and the College and will be active in supporting that further."
Hendricks, founder of a wholesale company called ABC Supply, has shaped Wisconsin for years through her philanthropy and as a well-known donor to Republicans, including former Gov. Scott Walker.
Over the years, Hendricks and her late husband were prime boosters of the college and lavished millions helping to restore sites throughout Beloit. Forbes lists Hendricks as the third-wealthiest person in Wisconsin and 84th in the country. The magazine estimates her net worth at $7 billion.
Packard is the former president and chief executive officer of Regal-Beloit Corp.; McQuaid was co-founder and past president at Columbia Wanger Asset Management; and Sanger served on the board for more than 20 years.
According to a 2017 article on the college's website, Sanger was chair of the board for at least 12 years. The college renamed its Center for the Sciences — a 117,000-square-foot building that houses seven academic departments — after Sanger and his wife, Marjorie. The Sangers also fund a summer research program.
"In the long history of Beloit College, few individuals or families have built such fruitful connections so quickly or had such a transformative impact on the school as the family of Marge and James Sanger," the article states.
The departure of four board members at the same time is unusual. The college's website shows 21 remaining board members and two lifetime members. The board's bylaws say members serve three-year terms but also that they serve until replacements are named.
Conlisk said the school has "identified a number of potential Trustee candidates whose names will be presented to the Beloit College Board in coming months."
Small college faces uncertainty
In fall 2019, Beloit College had a total enrollment of 1,143 undergraduate students, according to the U.S. Department of Education.
Like most similarly sized institutions, the small liberal arts college is especially susceptible to enrollment declines. Last year, the Wisconsin Examiner reported, the college faced a $7 million shortfall after a significant drop in enrollment.
Conlisk did not immediately provide the enrollment for this fall.
In April, Moody's Investors Service downgraded Beloit College, citing "significant market challenges, evidenced by declining enrollment and net tuition revenue."
Tuition revenue at the college fell 16% in the 2019 fiscal year. Combined with financial constraints from the pandemic, the college's financial outlook is negative, according to the rating rationale.
Like all other colleges and universities nationally, especially private colleges, Beloit faced financial pressures to reopen this fall, and the consequences of not making it through the semester could be dire. Beloit already offered prorated room and board refunds to students when they were forced to abruptly send students home last spring.
Moody's also predicted the college could face challenges with philanthropy due to market volatility. This is a challenge other universities will also face, national experts have said.
The news comes as the college continues to grapple with the uncertainty around the COVID-19 pandemic.
Beloit College has earned national recognition for its efforts to ensure a safe return to school this fall, including an early decision to rework the entire academic calendar and efforts to involve students in the development of a COVID-19 behavioral pledge.
In addition to the costly investments to reopen campus during a pandemic, the college has made other moves to stabilize enrollment, including a plan to offer students a free ninth and 10th semester of education by covering any tuition and fees financial aid does not.
Contact Devi Shastri at 414-224-2193 or DAShastri@jrn.com. Follow her on Twitter at @DeviShastri.
Above is from: https://www.jsonline.com/story/news/education/2020/09/24/diane-hendricks-3-others-resign-beloit-college-board-trustees/3518554001/
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Dear Beloit College Alumni:
As some of you may have heard, four members of the Board of Trustees have notified us of their decision to step down from their official duties.
After many years of support, including completing the Powerhouse student union and recreation center project, and helping Beloit College finalize a new five-year financial plan, Diane Hendricks, Jim Packard, Chuck McQuaid, and Jim Sanger are resigning from the board.
All four love the college. All have been long-term Board members. All have been exceptionally generous with their time, talent, and treasure. And all fully understand the importance of an even stronger relationship between the City of Beloit and the College and will be active in supporting that further.
Regular turnover on college boards is the norm and all four departing trustees have spoken for some time about their plans to step down from the Board. We have identified a number of potential Trustee candidates whose names will be presented to the Beloit College Board in coming months.
We thank the four departing trustees for their invaluable service, and look forward to their continuing support of the College.
Sincerely,
Scott Bierman
President
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