College misses challenge grant deadline

Don't Tell the Donor received an email tip last week from someone at Virginia Intermont College giving us the tip that the school was going to miss a challenge grant deadline of June 30th. The Associated Press ran a story on it yesterday:

Auto dealer Bill Gatton initially gave Virginia Intermont College $250,000 and offered $750,000 more if $5 million could be raised by the end of June. Intermont President Michael Puglisi would not say how much money has been raised, but in May said about half of the $5 million was in hand.

"We're still working on it, and Mr. Gatton is still very supportive," Puglisi said. "We have been on the road and locally soliciting donations, but we still have work to do. (Gatton) has been willing to work with us."

The school announced in April that they would need about $4 million to remain open next year.

The financial crisis is the culmination of years of unfunded scholarship assistance for students, poor financial management practices, programs that did not generate significant revenue and consistently narrow operating margins, school officials said.

It was only two weeks ago that VI extended contracts with faculty. One wonders if the school knew at that time they were going to miss the deadline.

Sources seem to think Gatton will give them more time.