Covenant College 
The information in this column was provided to MinistryWatch by the ministry itself. It was last updated 1/6/2022. To update the information in this column, please email: info@ministrywatch.com
Summary
Covenant College is a Christian liberal arts college that offers the world biblically grounded men and women equipped to live out extraordinary callings in ordinary places. We are a community committed to the Bible as the inerrant Word of God, and everything we do is grounded in our Reformed theology and worldview. At Covenant, we seek to inspire and equip our students to be faithful stewards of their God-given abilities - all of our programs are designed with this in mind.
Contact information
Mailing address:
Covenant College
14049 Scenic Highway
Lookout Mountain, GA 30750
Website: covenant.edu
Phone: 706-820-1560
Email: info@covenant.edu
Organization details
EIN: 430719506
CEO/President: Dr. J. Derek Halvorson
Chairman: Craig Wood
Board size: 27
Founder:
Ruling year: 1957
Tax deductible: Yes
Fiscal year end: 06/30
Member of ECFA: Yes
Member of ECFA since: 2021
Purpose
The mission of Covenant College is to explore and express the preeminence of Jesus Christ in all things. We educate Christians to engage culture and cultures, to examine and unfold creation, and to pursue biblical justice and mercy in community.
Mission statement
We challenge one another to explore and express Christ's preeminence in all things.
Statement of faith
The following Community Statement of Beliefs represents the Board of Trustees' common understanding of how the truth of Scripture applies to several points of contemporary significance. We employ this Statement in the oversight of the mission and program of Covenant College. While this Statement is not Holy Scripture, we do believe it is faithful to God's Word and reflects the Reformed
tradition as found in the Westminster Standards. Since Covenant College aims to be biblically based as well as mindful of our rich Reformed heritage, this Statement is an attempt to keep our community faithful, promoting general harmony even
among the diversity of opinions represented in our community. Therefore, good faith assent to this Statement will be a factor in the hiring, evaluation, and promotion of faculty. If a faculty candidate or faculty member finds himself or herself in disagreement with the Statement in some particular, he or she will be asked to explain the nature of the
disagreement. The Board of Trustees retains ultimate and final authority to judge the limits of tolerable exception.
Revelation -
God has graciously disclosed his existence and power in the created order, and has supremely revealed himself to fallen human beings in the person of his Son, the incarnate Word. Moreover, this God is a speaking God who by his Spirit has graciously disclosed himself in human words: we believe that the very words of Holy Scripture have been given by God in the sixty-six books of the Old and New Testaments, which are both record and means of his saving work in the world. These writings alone constitute the
inspired Word of God, which is utterly authoritative in all that it affirms, without error in the original writings, complete in its revelation of his will for salvation, sufficient for all that God requires us to believe and do, and final in its authority over every domain of knowledge to which it speaks. We confess that both our finitude and our sinfulness preclude the possibility of knowing God's truth exhaustively, but we affirm that, enlightened by the Spirit of God, we can know God's revealed truth truly. The Bible is to be believed, as God's instruction, in all that it teaches; obeyed, as God's command, in al that it requires; and trusted, as God's pledge, in all that it promises. As God's people hear, believe, and do the Word, they are equipped as disciples of Christ and witnesses to the gospel.
Creation and Humanity - We believe that God freely and joyfully created all things from nothing by the power of His word. We believe that the rich diversity of the living world is rooted in historical supernatural creative acts recorded in Genesis 1 and 2. All things are subject to his will and all his creatures are the beneficiaries of his continual care according to his eternal purposes. We believe that God created human beings, male and female, in his own image and this makes them unique with respect to all other life in the created order. We affirm that the creation of human beings was a special creative act of God. Adam and Eve belonged to the created order that God himself declared to be very good, serving as God's agents to care for, cultivate, and govern creation, living in holy and devoted fellowship with their Maker. Men and women, equally made in the image of God, enjoy equal access to God by faith in Christ Jesus and are both called to move beyond passive selfindulgence to significant private and public engagement in family, church, and civic life.
Adam and Eve were made to complement each other in a one-flesh union that establishes the only normative pattern of sexual relations, such that marriage ultimately serves as a type of the union between Christ and his church. In God's wise purposes, men and women are not simply interchangeable, but rather they complement each other in mutually enriching ways. God ordains that they assume distinctive roles which reflect the loving relationship between Christ and the church, the husband exercising headship in a way that displays the caring, sacrificial love of Christ, and the wife submitting to her husband in a way that models the love of the church for her Lord. In the ministry of the church, both men and women are encouraged to serve Christ and to be developed to their full potential in the manifold ministries of the people of God. The distinctive Church office of elder is given to qualified men as outlined in Scripture.
Dignity of Human Life -
We believe that the God who created all things is the Giver and Sustainer of life. Therefore, we must value, honor, and protect life, especially human life, which was made in God's image. This means that the Church should do all it can to cultivate life. For
example, we strongly oppose abortion since it devalues and destroys human life. At the same time Christians should actively seek to provide for, protect, and nurture those who face the temptation to abort their baby. Similarly, since God created the entire human race in all its diversity we must seek the welfare of human life among the variety of races, cultures, and lands foreign to our own. All human life from all nationalities should be valued and protected. Finally, as an outworking of the dignity of human life, and since God does not show favoritism, we must seek justice with mercy for all; one life cannot be deemed more worthy than another simply because of one's race or financial means. Wherever injustice and oppression are found - whether in the state, church, school, or general society - they should be opposed with justice and mercy instituted in their stead, redeeming the sinful corruption of human institutions for the greater glory of God.
Donor confidence score
Transparency grade
A
To understand our transparency grade, click here.
Financial efficiency ratings
Sector: Colleges/Universities
| Category | Rating | Overall rank | Sector rank |
| Overall efficiency rating | | 548 of 1022 | 69 of 117 |
| Fund acquisition rating | | 693 of 1024 | 92 of 117 |
| Resource allocation rating | | 314 of 1024 | 23 of 117 |
| Asset utilization rating | | 610 of 1022 | 70 of 117 |
Financial ratios
| Funding ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Return on fundraising efforts Return on fundraising efforts = Fundraising expense / Total contributions | 15% | 18% | 35% | 20% | 19% | 20% |
Fundraising cost ratio Fundraising cost ratio = Fundraising expense / Total revenue | 2% | 4% | 4% | 3% | 3% | 3% |
Contributions reliance Contributions reliance = Total contributions / Total revenue | 13% | 20% | 11% | 15% | 16% | 14% |
Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses | 2% | 4% | 4% | 3% | 3% | 3% |
Other revenue reliance Other revenue reliance = Total other revenue / Total revenue | 87% | 80% | 89% | 85% | 84% | 86% |
| Operating ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Program expense ratio Program expense ratio = Program services / Total expenses | 84% | 89% | 88% | 87% | 88% | 89% |
Spending ratio Spending ratio = Total expenses / Total revenue | 97% | 95% | 97% | 90% | 93% | 94% |
Program output ratio Program output ratio = Program services / Total revenue | 81% | 85% | 86% | 79% | 82% | 84% |
Savings ratio Savings ratio = Surplus (deficit) / Total revenue | 3% | 5% | 3% | 10% | 7% | 6% |
Reserve accumulation rate Reserve accumulation rate = Surplus (deficit) / Net assets | 3% | 3% | 2% | 6% | 4% | 4% |
General and admin ratio General and admin ratio = Management and general expense / Total expenses | 13% | 7% | 8% | 9% | 8% | 8% |
| Investing ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Total asset turnover Total asset turnover = Total expenses / Total assets | 0.50 | 0.49 | 0.51 | 0.50 | 0.48 | 0.50 |
Degree of long-term investment Degree of long-term investment = Total assets / Total current assets | 2.74 | 3.88 | 3.28 | 3.05 | 3.13 | 3.27 |
Current asset turnover Current asset turnover = Total expenses / Total current assets | 1.62 | 1.90 | 1.68 | 1.54 | 1.50 | 1.65 |
| Liquidity ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Current ratio Current ratio = Total current assets / Total current liabilities | 6.26 | 11.34 | 7.26 | 8.50 | 7.37 | 8.43 |
Current liabilities ratio Current liabilities ratio = Total current liabilities / Total current assets | 0.16 | 0.09 | 0.14 | 0.12 | 0.14 | 0.12 |
Liquid reserve level Liquid reserve level = (Total current assets - Total current liabilities) / (Total expenses / 12) | 5.95 | 5.76 | 6.16 | 6.88 | 6.93 | 6.41 |
| Solvency ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Liabilities ratio Liabilities ratio = Total liabilities / Total assets | 27% | 4% | 7% | 10% | 14% | 11% |
Debt ratio Debt ratio = Debt / Total assets | 17% | 0% | 1% | 4% | 8% | 5% |
Reserve coverage ratio Reserve coverage ratio = Net assets / Total expenses | 140% | 197% | 183% | 179% | 180% | 177% |
Financials
| Balance sheet | |||||
| Assets | 2020 | 2019 | 2018 | 2017 | 2016 |
| Cash | $3,650,247 | $1,429,077 | $853,014 | $688,914 | $1,290,864 |
| Receivables, inventories, prepaids | $827,951 | $1,648,987 | $1,971,859 | $1,920,895 | $1,605,875 |
| Short-term investments | $20,835,967 | $27,054,928 | $30,081,765 | $28,742,748 | $23,771,654 |
| Other current assets | $0 | $0 | $0 | $0 | $0 |
| Total current assets | $25,314,165 | $30,132,992 | $32,906,638 | $31,352,557 | $26,668,393 |
| Long-term investments | $12,745,911 | $6,437,185 | $3,164,151 | $3,006,475 | $3,852,168 |
| Fixed assets | $60,195,527 | $62,378,789 | $64,227,936 | $63,722,634 | $56,485,967 |
| Other long-term assets | $0 | $24,175 | $42,389 | $203,508 | $268,070 |
| Total long-term assets | $72,941,438 | $68,840,149 | $67,434,476 | $66,932,617 | $60,606,205 |
| Total assets | $98,255,603 | $98,973,141 | $100,341,114 | $98,285,174 | $87,274,598 |
| Liabilities | 2020 | 2019 | 2018 | 2017 | 2016 |
| Payables and accrued expenses | $1,069,933 | $1,771,054 | $1,187,058 | $2,376,695 | $1,894,903 |
| Other current liabilities | $1,161,965 | $2,376,869 | $2,684,943 | $1,876,684 | $1,267,444 |
| Total current liabilities | $2,231,898 | $4,147,923 | $3,872,001 | $4,253,379 | $3,162,347 |
| Debt | $289,894 | $542,438 | $4,140,076 | $7,862,480 | $4,416,309 |
| Due to (from) affiliates | $0 | $0 | $0 | $0 | $0 |
| Other long-term liabilities | $1,170,122 | $1,796,339 | $1,796,339 | $1,934,001 | $2,003,666 |
| Total long-term liabilities | $1,460,016 | $2,338,777 | $5,936,415 | $9,796,481 | $6,419,975 |
| Total liabilities | $3,691,914 | $6,486,700 | $9,808,416 | $14,049,860 | $9,582,322 |
| Net assets | 2020 | 2019 | 2018 | 2017 | 2016 |
| Without donor restrictions | $67,206,920 | $65,600,881 | $64,190,200 | $37,565,140 | $35,634,496 |
| With donor restrictions | $27,356,769 | $26,885,560 | $26,342,498 | $46,670,174 | $42,057,780 |
| Net assets | $94,563,689 | $92,486,441 | $90,532,698 | $84,235,314 | $77,692,276 |
| Revenues and expenses | |||||
| Revenue | 2020 | 2019 | 2018 | 2017 | 2016 |
| Total contributions | $10,332,332 | $5,762,357 | $8,511,423 | $7,927,667 | $6,470,680 |
| Program service revenue | $39,162,725 | $43,628,224 | $42,360,611 | $40,697,562 | $39,245,130 |
| Membership dues | $0 | $0 | $0 | $0 | $0 |
| Investment income | $1,096,929 | $2,482,769 | $1,767,026 | $448,166 | $275,075 |
| Other revenue | $132,781 | $179,726 | $3,631,670 | $1,202,919 | $742,889 |
| Total other revenue | $40,392,435 | $46,290,719 | $47,759,307 | $42,348,647 | $40,263,094 |
| Total revenue | $50,724,767 | $52,053,076 | $56,270,730 | $50,276,314 | $46,733,774 |
| Expenses | 2020 | 2019 | 2018 | 2017 | 2016 |
| Program services | $42,879,819 | $44,754,379 | $44,184,861 | $41,435,488 | $39,067,264 |
| Management and general | $3,424,382 | $3,861,718 | $4,750,491 | $3,985,996 | $3,635,798 |
| Fundraising | $1,815,612 | $2,018,306 | $1,685,776 | $1,474,782 | $1,271,861 |
| Total expenses | $48,119,813 | $50,634,403 | $50,621,128 | $46,896,266 | $43,974,923 |
| Change in net assets | 2020 | 2019 | 2018 | 2017 | 2016 |
| Surplus (deficit) | $2,604,954 | $1,418,673 | $5,649,602 | $3,380,048 | $2,758,851 |
| Other changes in net assets | $0 | $0 | $0 | $0 | $0 |
| Total change in net assets | $2,604,954 | $1,418,673 | $5,649,602 | $3,380,048 | $2,758,851 |
Compensation
| Name | Title | Compensation |
| Dr J Derek Halvorson | President | $276,822 |
| Fred Verwoerd | VP Operations & Finance, CFO | $169,054 |
| Marc Erickson | Interim VP for Development/CCF Pres. | $166,909 |
| Jeff Hall | VP of Academic Affairs | $157,934 |
| Jeff Sandhoff | Major Gift Officer | $154,328 |
| Brad Voyles | VP for Student Development | $144,557 |
| Brian Fikkert | Professor of Econ. & Community Dev. | $128,343 |
Compensation data as of: 6/30/2020
Response from ministry
No response has been provided by this ministry.
The information below was provided to MinistryWatch by the ministry itself. It was last updated 1/6/2022. To update the information below, please email: info@ministrywatch.com
History
Founded in 1955 in Pasadena, California, Covenant College needed to expand into new facilities after just one year. Several professors helped Covenant move to St. Louis, Missouri, into a building donated by Catholic sisters. Over the next eight years, the institution increased in size and outgrew its facilities. The Lookout Mountain Hotel, built in 1928 with the South's largest ballroom and 200 guest rooms, came up for sale when Covenant once again needed more space. The once-posh "Castle in the Clouds" seemed an ideal location for the College, and Covenant purchased and moved into the hotel in 1964. Since then, the College has significantly developed the campus and cultivated important ties with the Chattanooga community.