Following our April Board of Trustees meeting, our Trustees who are Pearson Alumni wrote a summary for all alumni explaining how the Board came to the conclusion that the best course of action is to reduce enrollment as one step to renew Pearson College's future. A copy of that letter follows...
Renewing Pearson College
Dear Fellow Alumni,
As you will see from the attached letter from our College Director, David Hawley, we, as members of the Board of Trustees, made some difficult choices this past weekend to ensure a healthy future for Pearson. As alumni on the College Board, we hope this letter will give you a full perspective on the current state of the College. We also hope it will encourage our broader community – students, parents, alumni, donors, patrons, trustees and other supporters – to rally around in support of the College.
Pearson remains a beacon for the UWC movement. Of the 14 UWCs, it is only one of two (along with Adriatic) that maintains a full scholarship policy. This year, there were 200 students from 103 countries. Because of our full scholarship policy, we continue to create opportunities for students, which other UWCs find hard to replicate. We have several students from the poorest and most challenged regions of the world, including Yemen, East Timor, Congo, Somalia, and Haiti. We also continue to provide a distinctive educational experience, with a significant focus on sustainability and social responsibility.
We wish we could have beamed all of you into the village meeting we attended last Friday. Students vigorously debated the merits of the 10:30 “rule”, the responsibility they and faculty each have towards each other, and what it means to be an alumni of Pearson. Current Pearson College Trustee and Former Canadian Prime Minister Joe Clark perhaps summed it up best when he said “I was enormously impressed by the students”.
We also feel extremely fortunate to have David Hawley leading a talented and dedicated faculty. While the last of our cherished “old guard” Andrew Spray may be retiring this year, the pioneering spirit of our mentors and teachers continues to echo through the campus.
And yet there are obvious signs that the current operations are not financially sustainable. The houses are much the same as they were 30 years ago, with the result that they are in need of significant renovation.
What led the College to this point? In order to fund its operations, the College has, from its inception, relied on money from the Pearson College endowment, government support and annual giving from corporations, alumni, patrons, trustees and other friends of the College. Up until two years ago, the growth in the endowment, largely based upon returns on the existing investments, combined with an upward trend in annual fundraising, most notably alumni giving, gave management and the Board hope that the College would eventually operate at a break even level and then begin retiring its debt and further growing the endowment. Unfortunately, the global economic crisis intervened. While the College was luckier than most other institutions – the value of the endowment fell by 18% while those of many universities fell by more than 30% – the net result is that the College is receiving less from the endowment than it was 2 years ago. In addition, we have been cautioned not to rely on government funding continuing at its current level. Further, the College has accumulated a deficit of $5 million and has exhausted its line of credit with the bank.
For those of you who would like full details on the College’s financial situation, we will happily provide them. The quick summary is as follows:
■ 10 years ago, our budget per student was $28,000 per year. This was comparable to many other Canadian schools and other UWCs. Today, our budget is less than 2/3 of what comparable schools charge. In other words, the College has been unable to grow its fundraising enough to keep up with other educational institutions. We have cut so much that the math budget is $15 per student – barely enough for photocopies. This has been offset somewhat by initiatives like the school growing some of its own food and the implementation of significant energy conservation measures in order to reduce costs in a forward looking way.
■ The numbers above mean that to sustainably provide the kind of educational experience that we all had when we attended, the College needs to raise at least $8 million per year (200 students at $40,000 each). Put in other words, the cost of a full scholarship that includes tuition, room, board and related costs should be at least $40,000, if not $45,000 per year.
■ With the decline in the endowment and other annual funding sources, the College only expects to raise $5.5 million in the coming 2010-11 fiscal year.
■ In order to balance the budget – something we have to do because the bank will not lend any more money – the College has to cut its expenses to $5.5 million. (200 students at $5.5 million would mean $27,500 per student).
As a Board, we were left with a choice between two alternatives: the College either had to raise revenues from new sources immediately (realistically, the easiest way to do this would be to let go of the full scholarship policy); or, the College had to cut the number of students that attend Pearson to 160 until it develops the capability to raise enough money to return to a community of 200 students.
The Board chose to cut the number of students attending Pearson by 20 in each of the next two years. The reasons the Board made this choice are:
■ The consensus was that the full scholarship policy is one of the distinguishing features of Pearson College. The College has much more flexibility than other UWCs to accept students from anywhere in the world, regardless of means.
■ The consensus was that that the College can build a fundraising operation that can, over the next 2-3 years, raise up to $8 million annually. The reality is that the College has chronically under-invested in fundraising and communications. One of the key decisions made this past weekend is to proceed with a search for an individual to lead and develop a world class Development/Fundraising team for the College. The Pearson College Foundation has agreed to fund the investment required to get this team up and running.
■ Given that it will take at least 2-3 years to develop the fundraising base required to support 200 students on full scholarship, the Board decided to reduce the number of students attending the school. The Board hopes this is a temporary measure.
■ One side benefit of reducing the number of students to 160 is that it will free up one house. The College can use this opportunity to renovate the houses one at a time. Otherwise, the College would have had to put 40 students in trailers in the parking lot while it renovated each house.
We could end our letter here and ask for your help with donations. We will ask for your help… but this is only half the story.
While the majority of the Board has been focused on fundraising, a sub-group has developed an exciting vision for Pearson College. Vision 2020 articulates an exciting future which maintains the ideals of the Colleges while adapting the delivery of the experience to today’s world. What is clear is that the need for an institution like Pearson remains as great today as it was 40 years ago, perhaps more so. The Board has made difficult choices in order to preserve a healthy and relevant Pearson College.
The reason we are confident that we can raise the $8 million per year we need to educate 200 young leaders from all over the globe is precisely because the mission and vision of Pearson remain so meaningful. The best way for us to convince you that this is still the case is to encourage you to visit the College website at www.pearsoncollege.ca. Click on some of the student videos and read through their stories. Education remains a powerful force to foster peace and international understanding.
The Board essentially has a 3 stage plan to renew the College.
■ Stage 1: Stabilize. The College first needs to balance the finances and build the capacity to raise the necessary operating, capital and endowment funds. The participation of all alumni can serve as the catalyst and accelerator for the renewed fundraising efforts.
■ Stage 2: Renovate. The campus needs a complete renovation, beginning with the student houses. So it would be reasonable to expect a major capital campaign within the next few years.
■ Stage 3: Grow and Sustain. Once the College has eliminated its deficit, rebuilt the campus and shown that it can raise sufficient funds to sustain a balanced operation, it can focus on growing new programmes that enhance both the experience of all of our students and potentially reach many more outside Pedder Bay.
The fundraising goals and timelines for each stage are being developed and will be shared as soon as we have them ready.
So how can alumni help? Interestingly, it is not just about money – though unfortunately, the money is also essential.
■ Stay in touch. Pearson College is only as strong as the strength of its community. Today, this community total 3400 alumni, 200 students, 40 faculty and staff, and countless friends, parents and supporters.
■ Fill out your College profile. Donors are very interested in what graduates are doing. About 50% of graduates have filled out theirs. It would be helpful if we had an even fuller picture of the composition of our alumni base.
■ Get involved with a UWC National Committee. Selection remains one of the most important elements in creating a great College with terrific students.
■ Become a RECURRING donor. Why RECURRING? Because this creates a habit (not all habits are bad!) and it helps the college predict what cash flow it can count on.
To become a donor, please go to www.pearsoncollege.ca/alumni_givingback.
Every gift, no matter what the size, matters. The best universities achieve 50% participation. We should be able to do the same. Today we are at 19%.
We recognize that this letter raises as many questions as it answers. We are available to continue this conversation via email, phone or Facebook and we encourage you to reach out to any one of us. Feel free to make initial contact the emails listed below.
Sincerely,
Your alumni Trustees:
Jean Drouin (Year 15) jean_drouin@mckinsey.com
Michael Gordon (Year 14) mgordon003@sympatico.ca
Emma Howard-Boyd (Year 7) ehowardboyd@jupiter-group.co.uk
Robert Janes (Year 8) rjanes@jfklaw.ca
Alison MacKenzie-Armes (Year 5) alisonm@ca.ibm.com
Tom Sutton (Year 13) tsutton@mccarthy.ca





























