Evanston's Roycemore School Faces Existential Crisis as Enrollment Plummets and $7.67 Million Bond Looms
Roycemore School in Evanston faces an existential financial crisis after enrollment fell 17.9% and the school breached covenants on a $7.67 million bond. Auditors issued a going-concern warning as the board launches a $2 million fundraising campaign.
A century-old school fights for survival
Roycemore School, one of Evanston's most established independent schools, is fighting to stay open after two consecutive years of declining enrollment and rising costs pushed the institution to the financial brink. The school has operated for more than 110 years. Its future is now in doubt.
An analysis of independent auditor reports obtained by the Evanston RoundTable shows the school was on solid ground in 2023. By 2025, the financial picture had deteriorated sharply. Auditors issued what experts described as the most serious warning they can give: a "going concern" notice.
The numbers tell the story
The data from auditor reports filed by PKF Mueller, now acquired by Cherry Bekaert, reveals a school in freefall:
- K-8 enrollment dropped 22.1% from the 2022-23 school year to 2025-26
- Overall enrollment fell 17.9% in the same period
- Net tuition revenue fell from $6.25 million in fiscal year 2023 to $4.8 million in fiscal year 2025, a 23% decline
- Total compensation for staff rose 37%, from $3.67 million in 2021 to $5.04 million in 2024
- Revenues fell to $6 million in 2024-25 while expenses rose to $7.5 million
As of April 30, Roycemore had 220 students enrolled. By late May, the board reported enrollment had dropped to 191 students. Looking ahead to the 2026-27 school year, about 30 students have unenrolled, leaving 177 enrolled so far.
A $7.67 million bond hanging over the school
The financial strain has triggered a breach of covenants on a $7.67 million bond issued in 2021 to finance renovations at the school's campus at 1200 Davis Street. The breach forced Roycemore to reclassify its long-term debt as current and increased its working capital deficit to $8.18 million.
The school is waiting to learn whether the bondholder will grant a covenant waiver. Without one, the school could be required to repay the full amount immediately.
"The school either needs to raise more money or cut expenses, or both. That's the solution for getting out of this hole. It won't be easy, but it's probably doable," said Dan Weiss, an attorney, CPA, and founder of Counterpart CFO, a Florida-based nonprofit financial consulting firm.
Alumni say warning signs were ignored
Ephraim Zimmerman, a Roycemore alumnus, analyzed the school's publicly available IRS Form 990 filings for fiscal years 2022 and 2023. He concluded that the financial crisis was not sudden.
"The financial crisis that became public in April 2026 was not sudden or unforeseeable. The warning signs were present and measurable in the school's own financial records for at least two fiscal years prior to the board's public disclosure," Zimmerman said.
Thaddeus Hubbard, a Florida-based nonprofit consultant, was more direct about what went wrong.
"The short answer is they hired to match the growth of enrollment at their new building but as enrollment declined, payroll did not follow," Hubbard said.
The board's response
Gillian Dienoff, chair of the school's board of trustees, told the RoundTable that the board is examining staffing levels.
"Those are the things we're looking at now, making sure that what we have as far as staffing are appropriate for the level of enrollment that we have. It's not to eliminate roles and make Roycemore into a different place, but it is to look at what we need for the current school," Dienoff said.
The board has launched two crowdfunding campaigns:
- Teachers First Fund — Goal of $650,000 to cover remaining salary commitments for the 2025-26 school year. About $22,000 has been pledged so far.
- Save Roycemore Campaign — Goal of $2 million. The board reported $600,000 in pledges, though crowdfunding site checks showed $252,000 online. Dienoff said the gap reflects direct pledges to the school.
At a May 22 parents-only meeting, the board outlined several long-term options under review:
- Expanded building rentals for outside revenue
- Selling the building and leasing it back
- Potential relocation
- A potential merger with another school
The board said it has begun discussions with interim head-of-school candidates and hopes to name someone by July 1 if a path forward is confirmed.
A school of 6-to-1 ratios
Roycemore employed 32 teachers in the 2024-25 school year for a student-to-teacher ratio of 6.4 to 1. The 2025-26 school year has 33 teachers and a ratio of 6.6 to 1. Both figures are well below the commonly accepted benchmark of 15 to 20 students per teacher.
That low ratio is a selling point for parents. It is also a financial burden as enrollment shrinks.
What happens next
Faculty pay has been ensured through contract expirations on August 31. The board said remaining school events, trips, graduation activities, and summer camp are expected to proceed as planned.
Families were urged to volunteer for community-building events, support the teacher fund, and share accurate information with prospective families.
"Every family I spoke to last night wants to be at Roycemore next year," Dienoff said.
The school's survival will depend on whether it can halt the enrollment decline, secure a bond waiver, and raise enough money to close an $8.18 million working capital gap.