The Yellowstone Forever organization was in dire financial straits before the coronavirus pandemic struck/NPS file, Jacob W. Frank

Editor's note: This updates the article with a statement Yellowstone Forever posted on its webpage.

Yellowstone Forever, which has struggled financially since 2016 when it was formed by the merger of the Yellowstone Foundation and the Yellowstone Association, has been further impacted by the coronavirus pandemic and might not survive without significant reductions in its financial burden, Yellowstone National Park Superintendent Cam Sholly said Saturday.

The superintendent's comments came in the wake of the nonprofit's move Friday to lay off most of the staff of the Yellowstone Institute, and several months after a financial audit of the organization prompted concerns that "there is substantial doubt about the ability of Yellowstone Forever to continue as a going concern."

There was chatter circulating on social media channels Friday and Saturday that the nonprofit's board of directors had decided to permanently shut down the Institute, though Sholly told Traveler "we will get the Institute back on line." That said, the superintendent expressed serious concerns about Yellowstone Forever's stability.

"YF is at a point where if they do not take major actions to reduce their financial obligations, they will not survive," he wrote in an email. "They were in very bad shape due to a range of poor decisions made post merger - 2017/2018, and while we thought they were on a better track this past year, they were still very fragile when COVID hit its major revenue sources.

"Right now, they have really no cash reserves, they've accumulated massive debt once again; like many non-profits, their philanthropy is down substantially, and their costs are far exceeding their revenues," added Sholly. "The board needs to make major adjustments, which are happening."

While Yellowstone Forever's communications director, Christine Gianas Weinheimer, did not return a phone call inquiring about the status of the Institute, later Saturday a post on Yellowstone Forever's webpage said the Institute's programs would not return this year and probably not next year as the organization restructures "to ensure the long-term viability of our nonprofit organization so that we can maintain the trust and support of our many supporters and donors."

The statement, which was not signed, said the nonprofit has suffered financially from the coronavirus pandemic. Going forward, unidentified Yellowstone Forever officials said that with a "new, leaner structure, YF will be focused on projects designed to raise money for direct contribution to the park." Not mentioned was whether the organization would also focus on public education in the park, which was the hallmark of the Yellowstone Institute.

The statement also referred to unspecified layoffs of full-time staff. "Without taking both of these steps, YF could not survive," it said.

Yellowstone Forever's accountants, Anderson Zurmuehlen & Co. of Bozeman, Montana, had cited concerns about the organization's financial stability in their latest review of the financials, which covered Fiscal 2019.

In that financial review, dated February 17, 2020, the Yellowstone Forever board stated that "the Organization is working to reduce operating expenses based on its recovery plan, which was implemented in fiscal year 2020. The goal is to create efficiencies, reduce redundancies, and review vendor contracts for potential savings."

That statement, which did not include the Recovery Plan, also noted that Yellowstone Forever has two lines of credit totaling $6.5 million, with $3.7 million available as of February 28, 2019, that it could fall back on "in the event of an anticipated liqudity need."

While the coronavirus pandemic has greatly impacted the nonprofit, which operates bookstores inside the park, runs educational programs through the Institute, and raises millions of dollars for a wide variety of programs ranging from wolf studies and fisheries restoration to the Yellowstone Youth Conservation Corps, its financial problems predate the pandemic.

Philanthropic donations to Yellowstone Forever dropped by nearly $400,000 from Fiscal 2018 ($11,435,957) to Fiscal 2019 ($11,053,687). The cost to operate a dozen stores in the park was $3.3 million for the fiscal year that ended in February 2019, while the stores "generated $2,730,222 in net sales revenues and $782,728 in supporter contributions."

Operating the Institute cost $2,784,156 during the fiscal year, while revenues (educational tuition, fees, donations, and endowment proceeds) generated $2,178,063. Still, those revenues reflected a nearly $160,000 increase from Fiscal 2018, and participation was up to 7,897 from 6,130 the previous year. Overall, the documents said, "the Yellowstone Forever Institute had a record year" in fiscal 2019.

Since Yellowstone Forever's fiscal years end in February, the Fiscal 2019 financials actually reflect calendar year 2018 business and don't indicate how things went last year for the organization. 

The Institute, which was the face of the Yellowstone Association, had been idled this summer due to the coronavirus pandemic, and on Friday the Institute's staff was either laid off or fired, according to some on the staff. Permanently shuttering it would represent a colossal failure of the 2016 merger. At the time, Heather White, who was Yellowstone Forever's first CEO, heralded the combined resources of the foundation and the association, stating that the new entity would "become a national model for public-private partnerships to protect and support the park."

"We will combine the outstanding history of educational programs, products, and services of the Yellowstone Association and the legacy of critical fundraising support from the Yellowstone Park Foundation into a dynamic, unified education and fundraising partner for Yellowstone and its splendor," White said in October 2016.

White's tenure raised questions about whether top staff was being paid too much. When she left the organization in June 2019 she was being paid $303,192 in salary and benefits. Just days before she left, the organization offered large discounts on summer programs in the park just weeks after reportedly laying off some staff.

According to the organization's FY2019 990, its overall salaries jumped nearly $1 million from 2018 to 2019, from $6.4 million to $7.3 million at the same time that revenues were dropping. It's seven top staff combined received $1.19 million in salaries during that period, which ended with Yellowstone Forever showing a $3.8 million deficit for the year. Overall, however, the financial document showed Yellowstone Forever ended the fiscal year with $14.6 million in assets.

Sholly described the Institute's status as one of an organization on hiatus, not out of business.

"The Institute has been an incredible partner over the past decades. It is filled with professionals who are very passionate about Yellowstone and have dedicated a tremendous amount to providing world-class education for Yellowstone's visitors," he said. "Year-to-year, the Institute is a revenue-neutral program, under normal conditions. Unfortunately, due to COVID, the Institute would not have done much programming this year, and even if they could have ultimately, it would likely have operated at a deficit. If YF was stronger financially, that wouldn't be as big of a problem. That is not the case.

"... We will figure out the Institute and the best path to pursue moving forward."

Through the years the institute has offered year-round programs, ranging from a day to a number of days in length, in the national park. Founded in 1976, the Institute's programs revolved around Yellowstone’s plants, animals, geology and history. In 2010 it opened its Yellowstone Overlook Field Campus near Gardiner, Montana; prior to that acquisition the Buffalo Ranch in Yellowstone's Lamar Valley was the base camp for many of the institute's field programs.

There was a lobbying effort in support of the Yellowstone Institute launched on Facebook.

The Institute's operations have been well-loved and developed a dedicated corps of participants and supporters. In light of the layoffs Friday, concerns that the Institute possibly would be mothballed prompted harsh criticisms of Yellowstone Forever's board.

"So disheartening to see the Institute is no longer. This is the worst mistake YF could have made," wrote Mikayla Bell on Yellowstone Forever's Facebook page. "Shame on the board members. This is going to be a mistake YF will not heal from."

Added Kathy Haines, "Don’t waste my time asking for money until you get rid of the current board."

In an open letter to Sholly posted on Facebook, Carolyn Harwood Bulin, who worked as program manager for Yellowstone Forever, said discarding the Institute would be a tremendous mistake that would greatly impact fundraising for Yellowstone Forever.

"Donors want to support education in addition to the dozens of other projects for which we raise funds. Donors have been skeptical for years about the merger, and if the Institute is dissolved under the guise of COVID-19 impacts, legions of supporters will know the truth," she wrote. "Yellowstone Forever’s reputation will not recover again, and there will be dire impacts on project funding for the park. If our philanthropy team is struggling to raise money now, how are they supposed to do so in the face of such additional adversity?"