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The South Carolina university has struggled financially for years.
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Limestone University will live on—at least for now—after the Board of Trustees punted on a decision Tuesday to either close the institution or shift entirely online.
Instead, university officials announced that a “possible funding source” had surfaced.
The private Christian university in South Carolina had been seeking $6 million in donations, which Limestone administrators said was needed to facilitate the shift to a fully online model. Now the university could remain open with both on-campus and online course offerings.
But the language in Tuesday’s announcement indicates the deal is very much tentative.
“This possible funding solution has us all cautiously optimistic about the future of Limestone as both an in-person and online educator,” said Randall Richardson, Chair of Limestone’s Board of Trustees. “Last week, we were at the brink of a possible closure or transition to online-only classes. Now, we are pausing that discussion so we can wait on more information about a potential financial lifeline. We want to emphasize, this is just a possibility at the current time.”
Richardson added that he hoped to share more information on the funding source next week.
Limestone president Nathan Copeland said in the announcement that sharing the news of a potential closure “was the hardest announcement I’ve ever had to make,” but credited the university community for banding together to pray and reach out to possible donors. He also asked for patience on the “potentially positive development” as the board awaits more details.
“In the meantime, out of an abundance of caution, we need to move forward as if our on-campus activities are ending at the end of this semester and we will possibly offer on-line classes moving forward. I regret the uncertainty of the situation, but we must be exceptionally cautious,” Copeland said.
If the university does close, 478 employees will lose their jobs.
Limestone's current predicament reflects years of fiscal challenges. In recent years, the university has operated in the red; in fiscal year 2023, Limestone had a $12.6 million deficit, according to public financial documents, and had to borrow heavily from the endowment. Enrollment also fell by almost half over a decade, from 3,214 students in fall 2013, according to federal data, to 1,600 now, according to the university’s announcement.
Limestone’s most recent available audit indicated concerns that the university could face closure due to persistent operating deficits and an overreliance on its meager endowment to plug budget holes.
“The negative change in net assets from operating activities and negative change in net cash flows from operative activities was caused by a decline in enrollment and uncontrolled spending during the years ended June 30, 2023 and 2022,” auditors reported in fall 2023.
Amid the struggles, Limestone has relied heavily on its endowment. In 2023, the South Carolina attorney general agreed to let Limestone lift certain restrictions on its endowment, allowing officials to draw heavily on those funds.
But they weren’t enough to sustain the university, which saw its endowment collapse in value from $31.5 million at the beginning of fiscal year 2022 to $12.6 million at the end of FY23.
Limestone’s story is similar in some ways to that of Northland College, which announced in February that it is shutting down at the end of the 2024–25 academic year due to financial issues. Like Limestone, Northland had sought to fundraise its way to survival, seeking an influx of $12 million. But that plan never came to fruition, leading to the decision earlier this year to close the private Wisconsin college. Now Limestone officials are hoping to avoid the same fate.
Trustees will reconvene by April 29 to provide an update on the university’s future.
