(January 14, 2021) — Grand Canyon University, together with its students, faculty, staff and alumni, has accomplished a great deal in the 30 months since reverting to its historical status as an Arizona nonprofit corporation that is recognized by the IRS as a 501(c)(3) tax-exempt organization on July 1, 2018. GCU is proud of the fact that it was able to acquire the assets of the University at a purchase price that was well below fair market value, with an independent financial expert determining that GCU paid anywhere from 25%-60% less than fair market value for the assets acquired. In addition, an independent financial expert also determined that the master services agreement entered into at the closing of the transaction was at or below fair market value. GCU accomplished this by consummating a transaction that benefited the University, students, faculty alumni and community stakeholders. Furthermore, since the closing of that transaction in July 2018, and notwithstanding a once-in-a-century pandemic that has wreaked havoc on many great universities across the country, GCU has continued to freeze tuition on its Phoenix campus for the 13th consecutive year. Since closing the transaction, GCU has invested $250 million in new educational infrastructure and increased enrollment by approximately 14%, while also avoiding any layoffs or pay cuts to its faculty or staff, creating 466 new faculty and staff jobs on campus, and ensuring that all faculty and staff received pay increases.
In the two full fiscal years since acquiring the University, GCU has generated over $238 million in cash from operations, increased its net assets to $410 million as of June 30, 2020, and closed fiscal 2020 with over $307 million cash on hand while maintaining financial responsibility under the U.S. Department of Education’s standards. By any financial measure, including the opinions of two independent financial experts, the acquisition of the University and its financial performance over the last two years has been tremendously beneficial to the University and has enabled it to better serve students, faculty, staff, alumni and other members of the Phoenix community consistent with the University’s mission and Christian faith.