OPINION - Another year, another record profit for SCAD

By Kenneth Zapp

July 27, 2025 – Savannah College of Art and Design (SCAD) reported record profits for their fiscal year ending June 30, 2024. Taking information from their latest financial statements audited by the accounting firm Grant Thornton, their revenue exceeded expenses by $250 million. This was an increase of 17% over the previous year’s results.

The university’s assets grew 13% to over $2 billion and their net assets (assets minus liabilities) increased 17% to $1.7 billion. Helping their bottom line, their revenue expanded 16% while expenses grew only 15%.

SCAD Consolidated Financial Statements for period ending June 2024

SCAD’s financial success enabled it to increase its investments 50% to $633 million. These are assets which the school does not need for the operations of its educational work. The income from its investments totaled $72.6 million (some states are trying to tax such non-profit income.)

The school’s expanding profitability comes increasingly at the expense of the city’s property owners who fund local government. As SCAD had taken numerous properties off the tax rolls, its growing student enrollments increase the demand for municipal services.

Profitable nonprofit schools around the country have entered into PILOT programs (Payment in Lieu of Taxes) through which they support the local communities in which they thrive. Here SCAD has refused to contribute to the services they use and our city and county officials seem unable to convince them to pay their fair share.

This accumulation of private wealth also calls into question its nonprofit status. Its profit represents 34.7% of its revenue, a profit margin corporations dream about. More importantly, this means that SCAD could reduce its tuition by a third and still operate effectively. Imagine how much this would reduce their students’ debt.

About the writer

Kenneth Zapp is a professor emeritus of Economics and Finance at Metropolitan State University (Minneapolis) with a PhD from LAncaster University, UK., a board member of Savannah Housing Authority, a mentor at SCORE Savannah for 10 years, a former board member of the Downtown Neighborhood Association, and former columnist for the Savannah Morning News.

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