Grads call for Sweet Briar leaders to resign, citing fiduciary duties and claimed charity-law issue
Image from Sweet Briar College.
Graduates of a 114-year-old Virginia women’s college rallying to save their school after a surprise announcement earlier this month that it will close have targeted the board of directors.
A Monday letter written by Troutman Sanders calls for the resignation of the president and board of trustees of Sweet Briar College, implying that litigation may result if the demand isn’t met, according to the Lynchburg News & Advance.
The letter, which is published by the newspaper, says the alumni group that retained the firm has raised $3 million and identified 24 distinguished individuals ready to step in for the current board and serve as substitute directors. It also calls for transparency about the college’s financial status and says that efforts to close the school contravene the current directors’ fiduciary duties and obligation under Virginia charitable solicitation laws to use donated money for the intended purpose.
The article doesn’t include any comment from college officials. However, the Lynchburg News & Advance published a two-part interview with the college’s president, James Jones, on Thursday and Saturday.
In part one of the interview, he says Sweet Briar is no longer financially viable and has survived this long only by using its unrestricted endowment to help cover expenses.
In part two, he says the college will need to use restricted funds to pay its bills as it winds down.
“We are trying to work to unrestrict as much of the restricted endowment as the courts and the attorney general’s office will allow us to unrestrict,” Jones said. “You can go to court under a state of financial exigency. We are in a state of financial exigency. … We have to proceed with the attorney general and then to court, and that’s what we are doing. … We are having discussions with the attorney general’s office.”
Related coverage:
ABAJournal.com: “Sweet Briar grads retain Troutman Sanders, launch crowdfunding campaign to save school”
New York Times (reg. req.): “Anger and Activism Greet Plan to Shut Sweet Briar College”
Washington Post (reg. req): “Sweet Briar needs $250 million to stay open. Alumnae try to pool assets”
