The transformation of New College of Florida has garnered national attention since Governor Ron DeSantis appointed six conservative trustees in January 2022, effectively reshaping the institution’s direction. But behind the headlines of curriculum changes and faculty departures lies a significant shift in financial management that’s raising eyebrows among donors and financial experts alike.
Recent developments at the Sarasota liberal arts college reveal a pattern of financial oversight changes that have left some long-time supporters questioning the institution’s fiscal future. The college’s foundation, which manages approximately $49 million in assets, has experienced unprecedented administrative adjustments under President Richard Corcoran’s leadership.
“What we’re seeing at New College represents a fundamental shift in how university foundations typically operate,” explains Dr. Miranda Chen, director of higher education finance at the Center for Academic Governance. “The traditional firewalls between college administration and foundation management exist for good reason – they protect donor intent and ensure proper financial stewardship.”
The changes began shortly after Corcoran, a former Florida education commissioner and state House speaker, took office. According to financial documents obtained through public records requests, the foundation’s spending authorizations now require additional administrative approvals that weren’t previously necessary. This has reportedly slowed down even routine financial transactions.
Several donors have expressed concern about these changes. Elizabeth Moreno, who has contributed over $200,000 to New College programs over the past decade, told me during a recent phone interview: “I gave specifically to support student research in marine biology. Now I’m not confident my donations will continue funding the programs I intended to support.”
The foundation, established in 1980, has historically maintained a degree of independence from the college’s administration – a common practice in higher education that provides donors assurance their contributions will be used as specified. This separation has traditionally been reinforced through distinct governing boards and independent financial controls.
New College administrators defend the changes as necessary modernization. “We’re streamlining processes to ensure maximum effectiveness of donor funds,” said Marcus Johnson, New College’s vice president for advancement, in an emailed statement. “Our commitment to donor intent remains absolute.”
However, financial governance experts caution that such restructuring could have unintended consequences. Professor James Taylor of the Institute for Nonprofit Management notes, “University foundations thrive on donor confidence. When that trust is compromised, it can affect giving patterns for years to come.”
The timing of these changes coincides with a crucial fundraising period for the college. New College recently announced ambitious expansion plans requiring significant private support alongside state funding. The institution aims to increase enrollment by 50% over the next three years while developing new academic programs focused on entrepreneurship and leadership.
Financial records show that since the leadership transition began, several major donors have put their contributions on hold. While overall donation numbers haven’t been publicly released, individuals familiar with the foundation’s operations suggest a noticeable decline in major gifts over $50,000.
The situation highlights broader questions about governance in public higher education. “When political appointments drive institutional change, financial oversight becomes particularly important,” says education policy researcher Samantha Ortiz. “Donors want assurance that academic missions won’t shift dramatically after they’ve committed funds.”
Faculty members have also voiced concerns. Professor emeritus David Lampton, who taught economics at New College for 25 years, worries about long-term implications: “The foundation built relationships with donors over decades. Those connections were based on shared values and academic priorities. Rebuilding that trust takes time.”
Some changes appear particularly unusual within higher education contexts. For instance, foundation staff now report directly to college administrators rather than to their independent board – a structure that financial governance specialists consider problematic for maintaining appropriate separation.
“The model being implemented resembles corporate subsidiaries more than traditional university foundations,” observes Raymond Wilson, author of “University Foundations and Donor Intent.” “That approach fundamentally changes accountability structures.”
College officials maintain these adjustments will ultimately strengthen the institution. A statement from the president’s office emphasized: “New College is evolving to meet Florida’s educational needs while honoring its distinctive heritage. Our financial management practices reflect that commitment to excellence and accountability.”
As this situation continues to unfold, it raises important questions about the delicate balance between institutional autonomy and donor expectations in higher education – questions that extend far beyond New College’s campus in Sarasota. For now, many are watching closely to see whether these financial governance changes will impact the college’s ambitious growth plans and its ability to attract the private support necessary to achieve them.
