On Jan. 6 of this year, President Ed Wingenbach announced his resignation as leader of Hampshire College, having led the institution through a seemingly miraculous rebound since 2019. Behind the handshakes and smiles, a complex reality exists, and the community must rally once again to save the college. High-stakes questions about a potentially important bond issue loom large.
Under Wingenbach’s tenure, progress was made in fundraising, rebuilding enrollment, and implementing curricular changes, despite the additional challenges posed by the pandemic. Despite great progress, Hampshire’s audited financial report for fiscal year 2023-24 (which is publicly available) discloses that it violated stipulations over the last few years on two series of bonds that total over $21 million and almost $9 million of that is due on Sept. 30, just 60 days after Wingenbach’s last day at Hampshire.)
The college admits in the report that it currently lacks the funds to pay the bonds and is in danger of losing its good standing unless it continues to get extensions or obtains refinancing. Others have revealed this bond matter on Reddit.
I contacted the college spokesperson and its CFO to inquire about the status of the bonds. I inquired several more times and heard back for the first time shortly before press time. The response included their assessment that the college is in the best financial shape it has been in for at least a decade.
I reached out to Ken Rosenthal, former interim president and one of the college’s founders. He was confident about Hampshire’s future, including the bond issue, in part because Hampshire has always weathered these storms, Hampshire alumni and the Five Colleges will not let Hampshire fail, and in the next decade or so, Hampshire is likely to receive more bequests.
While it’s possible that bond issuers will continue to provide extensions, it’s imperative that the college conduct a risk assessment for this perilous period in higher education, be transparent, and consider a more proactive strategy for mitigating that risk.
To significantly reduce the college’s risk, I propose an immediate campaign to raise $10 million for a cash reserve by Sept. 30, above and beyond Hampshire’s current fundraising campaign for operating expenses. I believe alumni will rally once again, realizing the urgency of saving the college in time for the college’s 55th anniversary this fall and as a needed antidote to the Trump era. A more inclusive approach will also encourage more people to donate. I have donated to the current campaign, and I encourage others who care about Hampshire to do the same.
For true Hampshire sustainability, we need more. We need more donations, higher enrollment, but most of all, we need more transparency into fundraising, governance, and decision-making. Board Reform and what Hampshire needs in its next president are covered in the forthcoming article in The Omen, titled “Is Hampshire Still Hampering Good Governance?” The re-envisioning of Hampshire that students fought for includes governance reform– we must never forget that.
Jonathon Podolsky
Northampton
