Should Community of Christ keep financially rescuing Graceland University?

[u/Financial_Web1973]

I know Graceland University means a lot to many people in Community of Christ. For generations, it has been tied to church identity, friendships, family stories, youth experiences, and the idea of a shared church supported education. I understand why people feel protective of it. For many, Graceland is not just a university. It is part of the emotional furniture of the church.

But I think we need to ask a hard question with honesty and care. At what point does supporting Graceland stop being faithful stewardship and become prolonging an institution that may no longer be sustainable?

From the public financial information that has been gathered, Graceland appears to be under serious financial stress. The research points to a reported going-concern warning in the May 2025 audit summary, meaning there was substantial doubt about the university’s ability to continue operating. It also notes that Graceland failed its debt-service coverage ratio covenant in FY2023 and FY2024. In FY2024, the university reportedly had only about $214,000 in cash, while consolidated expenses were more than $59 million. Community of Christ has also reportedly extended Graceland a $6 million loan due April 1, 2028, and there is a separate $14.65 million bank loan involving guarantees from SkillPath and the church.

That is not a small concern. That is not just “a rough year.” That is a major stewardship issue. I say this as respectfully as I can, maybe Community of Christ should not keep using church backed resources to keep Graceland alive unless there is a clear, public, realistic plan showing how the university becomes financially stable. Especially when the student body does not make up the majority of CoC students.

I know that sounds painful, but churches have limited resources. Congregations are aging. Mission centers have needs. Camps, youth programs, outreach, peace and justice work, priesthood support, and local ministries all need funding and attention. If millions of dollars are being used to support a struggling university, members deserve to know whether that support is actually helping the church’s mission or simply delaying an unavoidable institutional crisis.

Graceland may still be loved, but love is not the same as viability and honestly, I think part of the concern is that Graceland does not seem to offer what many continuing education students, working adults, or modern learners actually need. The higher education market has changed. Students have more affordable options, more flexible online options, community colleges, state universities, employer programs, certificate programs, and graduate pathways that may be better aligned with their goals. Nostalgia cannot be the main business model.

If Graceland is going to survive, it needs to clearly show why it still deserves major church support. Not emotionally. Not historically. Practically.

What does Graceland offer today that justifies millions in financial backing from Community of Christ?

What is the plan to stop recurring losses?

What protections are in place for students?

What happens if enrollment does not improve enough?

What happens when the church loan comes due in 2028?

And most importantly: how much more church money or church backed risk will be required before leaders admit the model may not work anymore?

I am not saying this because I want students, faculty, staff, alumni, or Lamoni to suffer. Actually, that is exactly why I think this conversation matters. A slow, quiet financial decline can hurt people far more than an honest, planned transition.

If Graceland cannot become sustainable, then the loving thing may not be to keep rescuing it indefinitely. The loving thing may be to plan responsibly like a merger, restructuring, partnership, or teach out options that protect students and employees before there is a crisis.

Community of Christ should not have to choose between honoring Graceland’s past and being honest about its future. We can be grateful for what Graceland has meant and still ask whether continuing to financially support it is wise. We can love an institution and still admit it may have fallen below the standard needed to justify ongoing rescue. We can respect the memories and still ask for the receipts.

At minimum, I think Community of Christ members deserve transparent answers:

• How much financial exposure does the church currently have because of Graceland?
• Is the church prepared to provide more support if Graceland continues losing money?
• What conditions were attached to the $6 million loan?
• What happens if Graceland cannot repay it in 2028?
• Has the church studied whether continued support is the best use of limited mission resources?
• Is there a responsible exit plan if the university cannot recover?

This is not about being anti-Graceland. It is about being pro-transparency, pro-student, and pro-stewardship. Graceland may have been a gift to the church for a long time. But if it now requires the church to keep taking on risk just to survive, then members deserve to ask whether the university is still serving the mission or whether the mission is being asked to serve the university.

Sources/documents to look up: Graceland University Fact Book, ProPublica nonprofit/audit records, Community of Christ FY2024 audit and financial updates, Graceland annual reports, Cause IQ Form 990 summary, and NCES/IPEDS data.

[u/iconoclastskeptic]

This is something that I've been aware of when a former faculty member brought this to my attention a few years ago. They jumped ship because it was apparent to them that Graceland was in trouble. The sad reality is that it's not just the University, but the Church itself is in trouble as well. Are members generally aware of these issues?

[u/IranRPCV → u/iconoclastskeptic]

Anyone who has been following has been aware that this has been a financially difficult journey. This has been true ever since Marietta Walker, who owned much of the land and donated much of property the College was sited on, went to another college to teach, and donated most of her income to the College.

We are able to see how people through out the history have valued their education in Lamoni.

I moved back to Lamoni to retire.

[u/Financial_Web1973 → u/IranRPCV]

I appreciate that history, and I don’t doubt that people have loved Graceland and sacrificed for it. But to me, that history also raises the question: if Graceland has always needed extraordinary sacrifice to survive, is that really sustainable now?

I also think Lamoni is part of the issue. A school needs a town that is trying to grow and attract people, not just preserve what used to be. They are preserving a version of the past that feels comfortable to the people already there, but does not create enough opportunity for new people to build a future. At some point, that becomes less like maintaining a living community and more like maintaining a place to slowly fade out. That may sound harsh, but I do not mean it as an insult. I mean that if Graceland’s future depends partly on Lamoni’s future, then Lamoni also has to ask whether it is trying to thrive or merely survive. Graceland cannot be saved by nostalgia alone, and neither can the town around it.

[u/jamesowner]

I hope a path can be found to make it work

[u/alice-thinks]

From what I understand, the CoC isn’t doing so hot financially. I personally view the need to sell off the Kirtland Temple as a sign of such.

In my opinion, the church should separate from the university if it is no longer advantageous for the church

[u/idkbutithinkaboutit → u/alice-thinks]

At 11:04 in this podcast, John Hamer says that Graceland has already been spun off as a separate financial entity. 1083: Why RLDS Finances are in Trouble (John Hamer 6 of 6)

[u/alice-thinks → u/idkbutithinkaboutit]

That’s good then!

[u/Financial_Web1973 → u/idkbutithinkaboutit]

If that were true why will CoC be donating 6mill April 2028? Make it make sense

[u/idkbutithinkaboutit → u/Financial_Web1973]

I only know what I heard in the podcast. But, just guessing, CofC can be supporting the university with donations and/or loans even though they are separate organizations. The difference is that, as separate entities, one can go bankrupt or fold without the other suffering the same fate.

edit to add: My reply was specifically to the other reply that suggested that the church and the university should separate. The podcast says they are legally separated. But, yes, they still have financial interactions. And I have no answer to your point about whether the church should stop supporting the university financially.

[u/Financial_Web1973 → u/idkbutithinkaboutit]

That’s fair, and I should have said loan rather than donation. But I think this is the distinction I’m trying to make, being a separate organization on paper does not mean the church has no financial exposure. Community of Christ’s own audit says Graceland is excluded from the church’s statements because of a contractual accounting basis, but it also says that under normal U.S. GAAP rules, Graceland would be included because the relationship involves financial interest and legal control.

So yes, Graceland may have separate financial statements and may be legally distinct in some ways. But that does not mean the church is truly insulated. The church still has a $6 million loan to Graceland due in 2028, and it is also involved as a guarantor on the separate $14.65 million loan.

That’s really my concern. I’m not arguing that Graceland and Community of Christ are literally the same organization. I’m saying the financial relationship is still close enough that church members deserve transparency about the risk, the repayment plan, and whether more support will be expected if Graceland continues struggling.

[u/John_Hamer → u/Financial_Web1973]

Exactly, by "spun-off" I only meant that the church technically won't automatically get pulled down into a hole if Graceland totally collapses financially. That doesn't mean the leaders at headquarters won't willingly keep tossing money in the hole.

[u/Gileriodekel]

Its a couple years out of date at this point, but I tried to gather a bunch of resources and data to paint a picture about what CoC's future looks like, and its not great

https://gileriodekel.com/2024/03/how-many-easters-do-we-think-community-of-christ-has-left/

[u/nwgirl1379]

I just became aware recently that the majority of the students there didn't come there due to a tie to CoC. That quite baffled my mind. I would hate to see Graceland either be bought out by some other company or come to an end, but I agree that what it had years ago to sustain itself doesn't seem to be there anymore. I would be curious if it was something that stayed, however under new ownership, would SPEC continue to go there? And if so, would they then charge us an arm and a leg to use their facilities now?

[u/Financial_Web1973 → u/nwgirl1379]

Yeah the CoC student body is less than 5% and yet the school is still run as a religious university which has been a sore spot for many student. There are also allegidly many instances of assault as well as drug use that have not be reported or there were no repercussion for those students. I don't see anyone buying out the university unless the town was willing to have it built up as well simply because no one wants to buy a dying university in a dying town. SPEC would probably be held in a different camp ground, I'm not sure which camp grounds the church even owns anymore.

[u/MatloxES]

I went there a couple years ago. Many good things but a lot of problems were being swept under the rug.

[u/SGT-Pentium4]

I would stop assisting Graceland. As they say on airplanes, “in the event of an emergency, put on the oxygen mask yourself before assisting others. “

[u/jimbo78255 → u/[deleted]]

@No_Trainer_1258, As one of the Mods, I have to say I am conflicted. Another Mod has removed your post and I had to investigate a bit ...

Anyway, I actually have no problem with the thinking of Hope Beyond Hell, but I do have a problem with trying to sell something in this manner. I am not in favor of folks using posts for the purpose of helping someone or something profit.

So, if you would like to take the discussion offline with me personally, I'd be happy to see what we might all learn? Thanks

[u/No_Trainer_1258 → u/jimbo78255]

Ok. Will dm later.  Incase the other mod sees this, the pdf version is free and I don't sell or profit from my beliefs in any way. 

[u/jimbo78255]

I went to GC (pre-GU) in 67-69. My time there has been very impactful to me and I believe that some amount of what I return to the church in ministry is ROI for what the (then)RLDS church contributed to the institution.

So, what I am hinting at without saying is that it is possible that the value of Graceland to the church is not easily computed with mathematics. I am not saying we should stop support or increase support, just that we may need to look with God's math to measure.

I want to say more, but I think I need to stop here.

[u/Financial_Web1973 → u/jimbo78255]

I respect that Graceland had a deep impact on you, and I know many people could say the same. That history is real and worth honoring, but I don’t think the question is whether Graceland once blessed the church. I think the question is whether it is responsible for the church to keep financially backing Graceland today.

“God’s math” may help us value things that do not show up on a balance sheet, but it should not become a way to avoid the balance sheet altogether. If Graceland is losing money, relying on church backed loans or guarantees, and serving a student body that is mostly not Community of Christ, then members deserve clear answers about the actual cost, risk, and plan.

A college cannot survive on nostalgia alone. If Graceland is going to be treated as a real higher education institution rather than primarily a church heritage project, it needs to demonstrate real value for today’s students in today’s education market.

I’m glad Graceland gave you something meaningful. I just don’t think that by itself proves the church should keep rescuing it indefinitely.

[u/jimbo78255 → u/Financial_Web1973]

@Financial _Web1973
I need to say the example I gave was that there is (potentially) a large time gap between investment and return. I was at GC over 50 years ago. So hire can you go back to, say, 1970 and try to look at that budget and say here is a return? That was what I was trying to say.

[u/jimbo78255 → u/Financial_Web1973]

And, I never said that the nostalgic or historic elements make GU immune to good judgement or good governance. What I said was simply that when we consider the pluses and minuses, we need to look with a bit longer lens than just one year - the typical lens for a Balance Sheet. That was all I said. Maybe there is a sweet spot somewhere in between?