The Northland College Board of Trustees has declared a financial exigency and will make a final decision in two weeks about the future of the private school in Ashland, Wis.

Thursday's action came with a pledge to make "a final, good faith effort" to save the 132-year-old college after failing to raise $12 million to keep the doors open. Leaders had said the school would close if they didn't have the money by Wednesday.

"As we've said from the start, our shared goal is to continue Northland's mission and we are committed to ensuring we've explored all options to do so. The board remains open and hopeful," said Board Chair Ted Bristol. "Northland's circumstances remain incredibly serious and significant progress will be needed in the next two weeks to avoid closure."

Financial exigency is a formal recognition by the board that Northland College is facing a serious crisis that requires immediate attention and resolution, according to a statement from the school.

In mid-March, Northland officials said the school, which enrolls about 500 undergraduates, did not have enough money to continue operating beyond this year. They appealed to donors to contribute to "fund a new Northland College for a more sustainable future."

In the three weeks that followed, more than 900 donors gave Northland $1.5 million — a record for the school. In a separate effort, more than 500 people had pledged more than $278,000 through a website called "Northland Forever," which was started by faculty members and alumni to help save the college and share information about the school's plight. But those efforts still left a $10.5 million shortfall.

School leaders have said Northland has long faced financial challenges and has struggled to find a sustainable solution. It has operated in the red for seven straight years, according to data from propublica.org.

The school reported a deficit of just under $3.3 million on its tax filings in 2022, with $31.8 million in revenue and $35.1 million in expenses. Income fell short of expenses by more than $3 million in 2016 and 2018, with smaller losses in 2017, 2019, 2020 and 2021.

But a recent audit of finances found the school's deficit was worse than anticipated due to declining enrollment, growing costs and the loss of key funding sources. That led to the appeal to raise money and create a "New Northland."

In the meantime, administrators said they are committed to supporting a positive environment through the end of the school year with no immediate changes to programs or services. That means the Career Expo, May Term, Honors Day and commencement will continue.

By extending the deadline, Northland President Chad Dayton said the uncertainty is also extended for students and others who are waiting for a firm decision so they can make future plans.

"There have been positive and productive conversations taking place among the board, leadership, faculty and campus groups, as well as the community," Dayton said. "We are listening and agree that additional time and a defined process are valuable next steps."