Schools, foundation call for study of BSC ties

By Tony W. Cartledge

BR Editor

ASHEBORO - The five colleges and universities actively related to the Baptist State Convention (BSC) of North Carolina have asked the convention's Executive Committee to direct the Council on Christian Higher Education to study the relationship between the BSC and the schools, and to present a report no later than the committee's August 2006 meeting.

The North Carolina Baptist Foundation (NCBF) also asked the Executive Committee to appoint a study committee to evaluate its relationship with the BSC within the same time frame.

Meanwhile, North Carolina Baptist Retirement Homes asked that its earlier request for a new relationship with the BSC be tabled after the BSC lawyer said that he thought the move would effectively end ties between the two groups.

The Executive Committee approved all of the requests.

The motions came after two days of fast-moving, back-and-forth developments in meetings associated with the fall meeting of the BSC Board of Directors Sept. 27-28.

The Executive Committee, which typically meets for a single morning session prior to the Board of Directors meeting, met three times Sept. 26-27, including a late-night called meeting after the opening plenary session of the Board of Directions.

Leaders at BSC-related schools, institutions and agencies reacted with concern after this year's Committee on Nominations denied some of their recommendations for trustees or directors.

Colleges and universities

Campbell University, Chowan College, Gardner-Webb University, Mars Hill College, and Wingate University acted in concert, making their request through the Council on Christian Higher Education. The council met during the afternoon on Sept. 27, leading Board of Directors president John Butler to call the Executive Committee back into session later that evening.

Clella Lee, chairperson of the Council on Christian Higher Education, moved that the Executive Committee "direct the Council on Christian Higher Education to conduct a detailed study of all aspects of the relationship between the Convention and the five North Carolina Baptist colleges and universities." The motion asked for the study to include at least five areas: "accreditation standards, funding, the future direction of the colleges and universities, governance, and maximizing financial support for North Carolina Baptist students attending the five institutions."

Butler explained that the requested study is in accord with Article VI. A. 2. d. of the BSC bylaws, which assigns the Council on Christian Higher Education responsibility to "study all requests of the Executive Committee with regard to a change of status by a North Carolina college or university and to make such report to the Executive Committee as the Council deems appropriate."

A study under Article VI does not imply a desire to terminate the relationship between an institution and the BSC, Butler said, as would be the case if the study was instigated at the annual meeting and conducted under the provisions of Article XI., which describes procedures to be followed if an institution or agency seeks "termination or severance" of the relationship.

The schools' desire is "to perhaps modify the relationship but preserve a true relationship between colleges and the BSC," Butler said.

Coy Privette, a member of the Executive Committee, asked what problems had triggered the request for a study.

Campbell University president Jerry Wallace said "the problem with the Nominating Committee is one: there was not a uniform approach to studying trustees that was applied across the board." Wallace said a study was needed to "ferret out" the implications of what it means if "one body can impose its will on a board of trustees relative to policies a board can establish."

Privette asked both Wallace and Dan Lunsford, president of Mars Hill College, to confirm that the Committee on Nominations recommended people from the list of those recommended by the presidents, even though they might not have been among the top choices. In each case, he asked, "What's the problem?"

Lunsford said the presidents gave their recommendations "in line with parameters as usual," but "other parameters were applied after the recommendations were made." "Ultimate choices all came off of our list," Lunsford said, "but rules were modified subsequent to submitting the names."

Committee on Nominations chair Jeff Long was not present, but had acknowledged to the Executive Committee at a previous meeting that his committee had agreed not to nominate persons who belong to churches affiliated with the Alliance of Baptists, because the Alliance was perceived as having a pro-homosexual stance.

One college president was told by his liaison to the Committee on Nominations that he would not go forward with two potential trustees because their churches were not affiliated with the Southern Baptist Convention.

"We complied with all expectations per the bylaws," Lunsford said, "but as they were being reviewed, other aspects were introduced that we weren't aware of."

Butler said "the larger issue is that the colleges don't want to have an antagonistic relationship with BSC," but felt the need for a study of the areas requested in the motion.

Don Warren moved that the Executive Committee go into executive session so committee members could speak more freely. The motion failed by a vote of 7-10. Butler cited his prerogative as chair, however, and asked everyone not on the Executive Committee to leave the room for what he said would be a short time.

Guests were allowed back in after about 10 minutes, and the committee quickly voted to approve the motion, with no voiced opposition.

N.C. Baptist Foundation

Clay Warf, executive director of the North Carolina Baptist Foundation (NCBF), also asked the Executive Committee to appoint a committee to study the Foundation's relationship to the BSC.

Earlier in the day, Warf had told the Executive Committee that the Foundation would ask the BSC to commission a study of the relationship during the annual meeting in November. Following that meeting, convention officials suggested to Warf that requesting a study at the annual meeting could be perceived as a movement toward termination of the relationship under Article XI of the bylaws.

Warf then came back to the Executive Committee and requested that it appoint a committee to conduct a study so the premise would not be that NCBF's desire is to sever the relationship.

In his earlier rationale for requesting the study, Warf cited liability concerns growing from the failure of the Baptist Foundation of Arizona in 1999. After a court settlement, the failure ultimately impacted the Arizona Southern Baptist Convention (ASBC), which lost about $1.2 million, not including legal expenses, as part of a settlement. The ASBC's insurance carrier also paid $750,000 in the settlement.

NCBF directors studied the issue carefully in March 2003, Warf said, and instructed him to compose a letter to then-executive director Jim Royston asking for a study of the relationship between the two organizations. Warf distributed copies of the letter, which requested that Royston seek an opinion from legal counsel, especially regarding liability concerns.

Warf said he did not know if Royston took any action in response to the letter, but the Aug. 16 request of Baptist Retirement Homes for a new relationship reminded him that the issue needed to be addressed to ensure that the BSC is protected from liability.

The NCBF is healthy, uses good management policies, and is growing in assets under management, Warf said. Directors do not believe what happened in Arizona will ever happen in North Carolina, he said, but the problems that arose with the Baptist Foundation of Arizona were not expected, either.

In the letter originally addressed to Royston, directors said they thought the BSC "would be better served through a new relationship with the Foundation which would not change our functional relationship with the Convention, but would free the Convention from legal liability issues."