ORU Whittles $55M Debt to $700K
Oral Roberts University has now less than $1 million in debt after having been $55 million in debt less than two years ago.
"I am incredibly excited about the debt being reduced by such a significant amount," commented Mart Green, board chair of the ORU Board of Trustees, in an announcement Wednesday.
"Debt is one of the dragons that ORU needed to slay to ensure economic sustainability, and we are almost there," he added.
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The historically charismatic school in Tulsa, Okla., has come a long way since a financial scandal shook the institution in 2007 and led to the resignation of its former president, Richard Roberts.
When Roberts, son of the school's namesake founder, televangelist Oral Roberts, had resigned in November 2007 after he and his wife were accused of using university money for shopping sprees, home improvements and a stable of horses for their daughters, ORU was more than $50 million in debt.
Since then, ORU has been working hard to recover from the scandal and its debt, making very large leaps and bounds along the way.
Last year, about half of a single $62 million donation given to ORU went toward eliminating the university's debt while $32 million was allocated toward "campus renovations, technology upgrades, academic enhancement, financial aid for new and returning students, marketing and operations."
And from February 2008 to April 2009, more than 15,000 individuals donated over $22 million to the university as part of "Renewing the Vision," a $25 million matching campaign that channeled donations into ORU projects such as "establishing endowed scholarships, attracting and retaining quality faculty and staff, academic program upgrades, other campus improvements, and more."
Though none of the donations went toward ORU's debt, for every dollar donated through the campaign, the ORU board of trustees promised to give a dollar toward the remaining debt – up to $25 million.
On Wednesday, ORU reported that the trustees had contributed $24,280,001 toward the university's $25 million in remaining debt, which brings the university's total debt down to $719,999.
"I want to thank all of the alumni and friends of the university who graciously gave to support the new ORU," board chair Green stated.
According to Green, the reduction of the school's debt is strengthening the new ORU and paving a "clear path" for it as the new president, Dr. Mark Rutland, prepares to take office.
Rutland, who served as president of Southeastern University in Lakeland, Fla., until May 2, will assume the presidency at ORU on July 1.
His election in January ended a 14-month search that began after the resignation of former president Richard Roberts, who currently is chairman and chief executive officer of the Oral Roberts Evangelistic Association.
Over the course of that time, Dr. Ralph Fagin served as the school's interim president.
