Below are the Balance Sheet and Income Statement of the George Wythe Foundation for the years 2002 - 2008. Note that in 2008, the school that "would use absolutely no debt for any reason" paid $81,000 interest on $1.47 million in debt.
Balance Sheet (click to enlarge)
Income Statement (click to enlarge)
There are several interesting things here, but what really stands out to me is the $1 million jump in debt from 2006 to 2007 (look at the balance sheet, second section, second line down). I can understand the 2005 appearance of $550K, which is likely the mortgage on the Cedar building. But this $1 million jump appears to coincide with the school's acquisition of land in Monticello, Utah.
I had always thought this was a mixture of donated and outright-purchased land, but apparently not. As they have suspended plans for a Monticello campus, this idle land does not appear to be anything but a drag on the foundation at this time. The fact that they appear to have bought it in early 2007, around the top of the real estate boom, begs the question of whether the school is in an upside-down position on it.
According to GW, the Monticello parcel is 520 acres. Let's be generous and assume that the $1 million mortgage represents the full purchase price, i.e. it was 100% financed and no donations were involved. That puts the land at $1,923 / acre. A quick perusal of the MLS puts land in Monticello at about half that.