The Head of School at Hualalai Academy is soliciting potential donors to help Hualalai’s current financial situation. Here is a copy of the letter being sent to potential donors:
Thank you for your willingness to look at the current financial status of Hualalai Academy, a K-8 independent school, serving the children of Kailua-Kona, Hawaii.
Over the past several years, the school has faced declining enrollment due to decreased discretionary spending for working families and the impact of new charter schools and online academies. Although the Hualalai Academy Experience is clearly the program of choice, many families have had to make the tough decision and settle for a no-tuition educational option for their children.
This “perfect storm” of circumstances has led to our board making the tough decision to suspend operation effective May 30, 2014. This decision was the result of multiple banks and lenders choosing not to refinance us based on our limited cash flow via student tuitions.
Specifically, the school has the following debt:
Mortgage and lines of credit with First Hawaiian Bank $1,600,000
Bridge loan with friend of HA 200,000
Anticipated Bridge loan with friends of HA 500,000
Debt as of June 1, 2014 $2,300,000
The anticipated bridge loans are currently being pursued so that we may be able to pay our faculty and complete the school year for the sake of the students.
Should we receive a “miracle” and find a way to eliminate past debt, we have the “team” ready to spring into action and keep Hualalai Academy open and poised to improve our financial position and grow the Hualalai Academy Experience.
As I write, we are fighting the clock. Students are applying to other quality independent schools and teachers will be receiving job offers as their reputation as outstanding teachers precedes them. So, time is of the essence.
In closing, I am the new kid on the block as I arrived on July 1, 2013 to help the school grow into the finest independent school in Hawaii. Instead, I have been watching a slow death. However, we are still breathing and your support would allow us to come back to life and once again thrive and serve.
Thank you for taking the time to consider helping Hualalai Academy.
John R. Colson
Head of School
The contact information for donations is John Colson 808-326-9866 firstname.lastname@example.org