Maplewood Academy Financial Update









Dear Maplewood Academy Family and Friends,

On Sunday, May 18, the Maplewood Academy Board, Board of Education, and Conference Board of Trustees met with the lead representative from a specially-appointed school health assessment committee. This visit occurred amidst a sobering trend: many Adventist schools across the country are struggling, with at least two announcing closures at the end of this academic year.

The purpose of the committee’s visit was to assess nine essential components of a healthy Adventist educational institution. These components are commonly used across the North America Division (NAD) to evaluate school viability. Maplewood Academy performed well in several key areas—including spirituality, academics, and leadership. However, the review identified a critical concern: Maplewood’s financial condition.

A Hard Reality
To put it bluntly, Maplewood Academy is insolvent—a financial term meaning the school can no longer pay its debts. For the past few years, the Conference treasurer and others have been raising concerns about a growing gap between Maplewood’s income and expenses, which has now reached a point of requiring difficult decisions.

In the past, when the Conference’s finances were stronger, it was possible to help bridge these gaps through extra financial support because we believe deeply in what Maplewood represents—a place where students are discipled spiritually, formed academically, and grown socially within a Christ-centered community.

But today, we are in a different financial moment. Minnesota is currently experiencing a downward trend in tithes and offerings, which is impacting the organization as a whole. As a result, our financial capacity limits our ability to support Maplewood at the levels we have in the past—especially as we strive to faithfully serve the broader mission across all areas of ministry. To maintain operations, the Conference has temporarily covered payroll expenses for Maplewood, with the understanding that these costs would be reimbursed. This allowed the academy to prioritize payments to external vendors. As of this letter, Maplewood owes just over $850,000 in back payroll—a debt that is now putting financial pressure on the entire organization, which is unsustainable.

This is the painful truth, but it’s one we must acknowledge together as we seek God’s wisdom for the future.

Why We Still Believe
In the face of these challenges, we are not giving up on what Maplewood represents—a place where, 24 hours a day, seven days a week, 9 months a year, for up to four years, students are surrounded by opportunities to grow in Christ and be discipled and trained for ministry and church leadership. We need this kind of Adventist education because it intensely engages young people in the formative years of their faith, providing a safe, wholistic space where they can experience Jesus and be shaped for His mission in the world. As Ellen White wrote:

“True education means more than the pursual of a certain course of study… It is the harmonious development of the physical, the mental, and the spiritual powers.”
—Education, p. 13

This situation is unsustainable—but not hopeless. Rather than viewing this as the end, we can see it as a new beginning: a chance to ask difficult questions, evaluate what’s working, and dream together about what Maplewood could become.

Facing Today’s Educational Reality
As western culture changes, we have seen a shift in how parents make decisions about education. We want longer influence over our children’s development, especially in the teenage years. So, we also want our children close to home. Also, school fees increasing in proportion to income, extracurricular activities for experiential growth, programs focusing on preparation for college and career, and spiritual teachings and training that align with familial beliefs and values all play into these choices. We ask: How can Adventist education evolve? How can Maplewood adapt? How can Minnesota not only adapt—but leap forward in faith?

Our Path Forward
We wish we had the answers today, but we do know this: God is guiding. We have a team at work gathering data—from financial records to survey responses to in-person interviews—to help build a full picture of what Adventist education is, what it could be, and how we might bridge that gap. They will be asking: What’s working? What’s possible? What’s needed to sustain and grow?

This team will be engaging with stakeholders across our system:

  • Current parents and students
  • Faculty and staff
  • Pastors and church members
  • Alumni and donors
  • Board members and beyond

This is not the end of Maplewood’s journey, but a fork in the road —one that calls for prayer, creativity, and faith as we explore new directions for the mission to continue.

Creating a Stopgap: A Short-Term Path Forward
To buy time for thoughtful evaluation and redesign, we are exploring a short-term financial solution to sustain Maplewood Academy for a short time. This stopgap is not a permanent solution—it merely creates space to pursue a path forward with clarity, creativity, and care.

One option under consideration is to access a quasi-endowment fund held by the Conference. This fund has historically supported education through worthy student scholarships and investment growth. Accessing it requires approval by the Board of Trustees, and the idea will be brought to the next meeting on June 29.

If approved, reallocating these funds would provide temporary operational support, allowing Maplewood to continue operating while we seek long-term solutions. However, this comes at the cost of lost revenue and compounding value.

How You Can Help – Your Voice Matters!
We ask for your prayers. We want to follow God’s leading, not our own. Whatever will make His work most effective in Minnesota, that’s what we want to do.

In the coming days, you may receive a survey about the future of Adventist education in Minnesota. Please take a few minutes to complete it. Your voice matters. Encourage others to share their thoughts, too.

And finally, if God has impressed something on your heart—don’t keep it to yourself. We want to hear it. Share your ideas. Speak your hope. Let’s rebuild—together. Contact us at communication@mnsda.com.

With hope and faith,

Jeff Scoggins Eric Mokua Gayln Bowers
President VP for Administration VP for Finance

Addendum: Historical Trends

This addendum provides some historical data related to Maplewood Academy and gives a snapshot of the trajectory of the academy over the past 15 years. This historical data helps us understand how the landscape shaping education has been changing and provides us with information to prepare for the future.

Slide2

Student Enrollment – 2010 – 2015

Over the past fifteen years, enrollment at Maplewood Academy overall decreased. While there was a significant decline during the COVID recession, the decline continued even after the economy began to bounce back. The average enrollment over the last 15 years has been 88.2; the last 10 years, 84.5 and finally; the last five years 73.8. 

Slide3

Donations Received – 2015 – 2024

Correspondingly, as enrollment has declined, we have also struggled to raise enough funds from external sources to provide for things such as worthy student funds. Despite some spikes, which has provided an avenue for survival, there is a downward trajectory in donations as well. In 2015, the academy received $424,770 in donations. In 2024, the academy received. $282,698 .

Slide4

Earnings Surplus/Decrease Carried Forward

Retained earnings is a financial term to describe whether an organization is operating with a gain or loss. When an organization makes more money than it spends, that money is carried forward into future years. This is called “retained earnings,” or “earnings surplus.” Those earnings are carried into the next year and make it possible for an organization to operate more freely. Unfortunately, four of the last 10 years have resulted in negative retained earnings. This means the academy has spent not only more than that year’s income, but has also spent prior years’ savings as well.

Slide5

Accounts Payable Increase

As the academy’s enrollment, donations and retained earnings have decreased, we have been unable to pay all our bills. In order to ensure local vendors are kept up-to-date, the Conference asked the academy to pay all external vendors and save the Conference as their last vendor to be paid. We would rather have the academy owe the Conference than owe external vendors. As a result, the academy’s accounts payable to the conference has spiked in recent years, culminating in $852,676 in accounts payable owed to the Conference at the end of March, 2025 . This is due to the academy being unable to make consistent payroll payments to the conference over the last three school years. In normal years, this would be a cause for concern; given the Conference’s overall financial challenges, this creates an opportunity for creative questions and prayerful consideration of how God might be asking us to step out in faith in new and different ways.

Slide6

Subsidy per Policy vs. Actual Subsidy

Some may ask how the Conference has been helping, besides backstopping the payroll costs for the academy. The North American Division has a defined policy that determines the required subsidy provided by the conference to a constituent boarding school. As you look at this chart, the green bars show how much subsidy was required per policy, and the purple bars show how much the conference appropriated. In 2010, the amount subsidy required by policy was  $146,340. The Conference allocated $337,029. In 2024, the required subsidy per policy was $198,864. The Conference allocated $525,588 to the academy, an amount that equates to more than 6% of the Conference’s overall income.

Why does this matter?

The Minnesota Conference constituency, in years past, has made it clear that Adventist Education and specifically, Maplewood Academy, is a priority. We are at a crossroads. We have an opportunity to redefine how education is provided in Minnesota. It will take work, prayer, and faith. Questions? Please contact communication@mnsda.com.

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