NOLS State of the School 2021

2021

STATE OF THE SCHOOL REPORT

NOLS changes lives.

NOLS Daniel Lay

TABLE OF CONTENTS ENGAGEMENT NOLS Transformation: Embracing Change..........................6 GIVING The NOLS Fund................................... 8 The NOLS Endowment................... 11 HIGHLIGHTS Risk Management.............................12 Financial..............................................14 THANK YOU........................................... 20

S saves lives. nols.edu | 3

MESSAGE FROM THE BOARD OF TRUSTEES

D

“NOLS has a far reach and touches lives, effects that we hope amplify in years to come.”

— Greg Avis

4 | State of the School Report 2021

ear NOLS community: One cannot begin a missive during these times without a strong expression of gratitude. On behalf of the Board, I would like to thank all NOLS staff and faculty for their unwavering commitment to execution of the NOLS mission. Serving our students with the best wilderness and classroom instruction and support in the outdoor education world has been a constant in this time of turmoil. I also wish to thank the broader NOLS community—alumni, families, donors, vendors, and others—for their dedication and support.

While fiscal year 2021 was a very challenging one, it was successful on a number of fronts because of the combined efforts of the NOLS community. Course outcomes were excellent, financial results met targets, and student demand was stronger than ever. Macro accomplishments are great, but what really matters is the experience of the individual student. I had the privilege of witnessing firsthand two of my students, Alondra and Betsabeth, return to East Palo Alto from a summer backpacking course in Alaska. Prior to their journey, neither had been outside of California. They glowed with excitement and stories, and their enthusiasm has inspired eight students from our school to enroll this coming summer! NOLS has a far reach and touches lives, effects that we hope amplify in years to come.

But we all know that NOLS faces challenges, some unique to the school, but most are confronting institutions across the county. The pandemic is, of course, a contributing factor, but many have been lurking at or near the surface for a long time. While simplistic and not exhaustive, they can be labeled the five “I’s”: isolation,

inequality, impact of climate change, lack of inclusion, and cracking infrastructure. The pandemic has made these issues more visible and in need of attention.

The Board’s primary responsibility is promoting and safeguarding the long-term health and sustainability of NOLS so that the institution may carry out its mission.

In times like these, many organizations muddle through with austerity measures. While NOLS is not immune to financial pressures and must be diligent, “muddling through” would be a mistake. That’s why the Board is supportive of another “I” that the team has initiated and the entire school is undertaking—investment— investment in staff and faculty, systems, and ultimately, our students.

Because of the generosity of the NOLS community and excellent financial stewardship, we are privileged to be in a position to make these investments. The process will not be easy, but if we work together with the aim of resourcing our staff and faculty so that they can improve an already excellent experience for each and every student, NOLS will be a more efficient, inclusive, fair, innovative, capable, impactful, and strong organization.

Thank you all for your dedication and support.

Warm regards,

Greg Avis Board Chair

Karolina Bassa

MESSAGE FROM THE THE PRESIDENT

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“An effective team depends on all of its members, and I feel blessed to be a part of this amazing team.”

— Terri Watson

elcome to the State of the School Report for Fiscal Year 2021. What an amazing year it has been— reopening after a full shutdown precipitated by COVID19 in March of 2020, having our immensely talented and dedicated faculty and staff manage to return our ability to offer courses to students in so many field and classroom locations, have such high student satisfaction, and have a financially successful year, The joy in being able to serve our mission is matched only by my gratitude towards you, our supporters, for the empowerment that your generosity has provided to our efforts. My thanks cannot be overstated.

The experiences of the last two years have highlighted some important themes at NOLS: That people’s desire for what NOLS can give them is strong and reflective of a world in which empowerment, competence in caring for others, and tackling challenges is valued. That connecting across differences to build effective teams is a life skill. And that our community’s passion for our school and our mission is multidimensional, multi-generational, and comes from a broad range of perspectives.

This upcoming year at NOLS is especially exciting as we embrace the work of not simply returning to what we were and how we operated pre-COVID, but taking initiatives that bolster our ability to support students, staff and build stronger programs via the Transformation initiative. The story on page seven provides details about those challenges and the efforts we are launching to address them. Our Financial Report begins on page 16.

Our ability to take on these new initiatives is due to several factors: first, the generosity of donors like you whose support enables so much. Second, the many NOLS faculty and staff who have done extraordinary work over the past year in the face of intense challenge.

Last, the diligence and discipline of prior NOLS board and administrative leaders to ensure adequate financial reserves to allow weathering of an unparalleled storm and deep investment in our future. The gratitude to each group is profound.

It’s a unique time at NOLS. In responding to an external world that is unlike what most of us have seen in our lifetime, I am reminded of the truth that is the heart of all NOLS education: we cannot control the weather, and we cannot control much of what happens around us.

What we can control is how we each choose to engage in the moment with others to provide the leadership, competence, and ownership of outcome to help move through the situation at hand towards the best outcome we can create.

An effective team depends on all of its members, and I feel blessed to be a part of this amazing team.

Thank you for all you do to support our mission. We couldn’t do it without you.

Terri Watson President

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ENGAGEMENT

NOLS’ TRANSFORMATION: EMBRACING CHANGE

by Anne McGowan Advancement Communications Coordinator

Dana Sykora

6 | State of the School Report 2021

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he world, and practically everything in it, changed dramatically in the last few years. NOLS is no exception.

The onset of the COVID-19 pandemic altered virtually everything at the school, from the way expedition and wilderness medicine courses are now taught, to the protocols that students, instructors, and staff are required to follow, and to the way our much-reduced staff show up at the office— or from home.

No one anticipated the magnitude of change. A schoolwide shutdown for months, a massive reduction of staff— these were needed and difficult responses to a dire situation,

The work of this Transformation is to equip us to serve our mission as best as possible as our future evolves. made with the safety of students, staff, and the viability of the school their paramount goals.

While many organizations might hunker down and retreat in times of difficulty, NOLS leadership views this as an opportunity to consider how we might rebuild into a new form to more strongly enable our educational mission. That opportunity is, in part, the genesis of our NOLS Transformation efforts.

The overarching goal is to be able to grow our ability to provide the world class education that defines us, and Left: Board Vice Chair, Greg Avis and John Gans. Brad Christensen

re-imagine how we might adjust our educational support model to provide better synergies as well as more robust financial sustainability. Critical initiatives such as vastly improved technology to support students and staff, and needed compensation adjustments to continue to attract and retain the caliber of people that define NOLS are supported by an improved approach to supporting programs to enable financial sustainability of these priorities.

To reach this goal, we are taking a three-planked and systemic approach to change. The “planks” of the NOLS Operating Model Transformation team address the multiple and interrelated challenges at NOLS impacting our ability to serve our mission, support students and staff, and to attract and retain the talented people that make the magic happen.

Those three “planks,” as directed by Terri and supported by the board of trustees, are: • Right Tools: Invest in the technology that provides excellent student service, supports staff in their work, and allows all school leadership to access and see needed information across all of NOLS in order to make better decisions.

• Thriving Culture: Culture has many elements that make NOLS a place where people want to work, want to remain, and can see a future for themselves. This include adequate compensation, attention to an inclusive culture that ensures we all have a sense of belonging, regardless of background, identity, or role.

• Supportive Organizational Structure: The “Why” of examining reorganization is to find ways to continue to enable the amazing work we do, yet enable a much easier means to understand developing student needs, develop new program ideas, and harmonize the way we work to eliminate unneeded duplication where it

makes sense. As a result, NOLS can become far more financially sustainable and support greater investment in the people that educate and support our students, and the tools to sustain excellence, and in scholarship support of students.

The next several years, Terri said, “are especially exciting as we embrace the work of a return to teaching students and also addressing long-standing challenges that have hindered our ability to grow in a way that enables increased investment in students, staff, and technology.”

“Specific efforts in our Transformation work have already begun,” Terri explained, “include improving compensation and benefits, a school-wide focus on an inclusive culture, and investment in upgrading technology—all of these in service to our “Why”—the education of our students."

In a presentation in October, Terri expressed immense gratitude for the discipline of prior NOLS trustees and administrative leaders who ensured the financial reserves that helped make this initiative possible matched with continued philanthropic efforts.

Jenny Tison, NOLS field instructor who brings years of significant experience as a top performer at one of the US’ top management consulting firms, will lead the Transformation work for the coming three to four years.

Having done similar large efforts in companies both larger and more complex than NOLS, as well as in the government and non-profit sectors, Jenny’s unique perspective as “one of us” and someone with skills well beyond what we have internally, is invaluable.

“In its broadest form, the work of this Transformation is to equip us to serve our mission as best as possible as our future evolves, as well as to set us up to seek out new opportunities to extend the reach of our work to new students and partners,” Jenny said. “I’m excited to be part of it.” nols.edu | 7

GIVING | THE NOLS FUND

NOLS FUND EXCEEDS GOAL BY 41 PERCENT

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hanks to the generosity of the thousands of donors listed in this publication, the NOLS Fund again exceeded its fundraising goal, hit a record high, and helped provide students with life-changing experiences in the wilderness.

In fiscal year 2021, more than 3,140 donors gave a total of $3,576,456—surpassing our goal by an extraordinary 41 percent. That’s an average gift of about $750.

About 95 percent of this year’s donations were given as unrestricted gifts, allowing NOLS the flexibility to use them where they are needed most. This includes supporting essential day-to-day operations, scholarships, and more.

Know that without your gift in whatever amount, NOLS would not be able to empower students to see beauty in wild places, become effective leaders and translate lessons learned in the back county to their lives in the front country. Thank you.

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Lucy Eichenauer

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STUDENT STORY | ASHER WEXLER

Reflection on the End of a Course Asher Wexler, 19, of Raleigh, North Carolina, and a MoreheadCain scholar, took a NOLS Alaska Mountaineering course last summer as part of his gap year between graduating high school and attending the University of North Carolina at Chapel Hill.

In high school, Asher was an accomplished track and crosscountry athlete, as well as a multi-instrumentalist—violin and piano.

After his course, Asher reflected on the ending of an adventure: “It feels so permanent. Sure, I may see Genevieve or Perrin or Mac again, and I’ll likely skate with Knox sometime.

But NOLS Alaska Mountaineering 1 is extinct forever. Marcus, Erin, Nadine, Cole, Asher Uno, Mac, Mike, Pedro, Perrin, Knox, Genevieve, Isabel, Sarah, and I will never again be all together,” Asher mused. “But maybe that’s part of what makes the experience so special. Fourteen different people converged in a certain place at a certain time for an experience that was special because the circumstances were totally unique. Maybe that’s why goodbyes are so powerful and memorable in the first place.” Asher’s complete reflection is linked here, or you can read it on his blog, where he also documents his other gap year experiences.

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Mia Smith

GIVING | THE NOLS ENDOWMENT

A STRONG ENDOWMENT IS A STRONG FUTURE

F

inancial stability happens over time, not overnight. That requires putting the right pieces in place to ensure even more financial stability down the road. That is the power of endowment.

The NOLS Endowment had a very successful year in FY2021, thanks to a combination of capital appreciation and new gifts. Our endowment finished the year up $14.2 million, from $55.9 million at the end of FY2020 to $70.1 million. That was a record-breaking figure.

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HIGHLIGHTS | RISK MANAGEMENT

RISK MANAGEMENT 2021

n fiscal year 2021, our programming expanded from the pandemic-shortened 2020 and we continued to emphasize our COVID-19 mitigation practices for our field and classroom courses. With the availability of vaccines and better understanding of COVID transmission, we were operating in COVID-normal. We maintained our diligence, continually evaluated our COVID risk exposure, and adapted our field and classroom practices.

Important risk management challenges included instructor availability for field courses; program staff turnover at locations—new people learning new jobs; and psychological stress that was felt by many staff given the cumulative pandemic stress, high workload, and working in times of uncertainty.

In spite of the challenges and because of the robust risk management and programmatic systems we have in place, and the strong work and commitment of our instructors and support staff, we had strong risk management performance for the year.

• There were no serious life or limb threatening injuries or illnesses.

• There was no COVID-19 illness on field courses and only three cases on Wilderness Medicine courses.

12 | State of the School Report 2021

On field courses:

• There were 111 medical evacuations—28 less than average. The evacuation rate of 0.98 evacuations per 1,000 program days is 2% above average.

• Out of all field course students, 11% had a reportable injury or illness, 5% had a non-medical incident, and 96.5% of our students graduated.

• There were 453 medical incidents (injuries and illnesses) reported—6 less than average. There were 154 injuries (46 less than average), and 299 illnesses (40 more than average). The medical incident rate per 1000 program days was 14% above average.

NOLS Medical Incident and Evacuation Rates Rate/1,000 Program Days

I

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

4.01 3.04

3.01

2.77

Medical Incidents Medical Evacuations

1.12

0.98

0.96

36 Year Avg. 1985-2020

10 Year Avg. 2011-2020

5 Year Avg. 2016-2020

0.98 2021

Eric Page

Reece Robinson

RISK MANAGEMENT IN ACTION When traveling in the mountains we face many natural hazards, one of which is boulder fields and loose and unstable rocks. In late July, a backpacking course in the Wind River Mountains of Wyoming were out for a day hike on Blaurock Pass.

As they were scrambling through some steep terrain a student accidentally dislodged a large boulder which toppled and hit his right shoulder knocking him down onto his left side. The impact of the boulder and his fall injured his right shoulder, left ankle, and left knee. He was in extreme pain. Also, they were at about 12,000 feet elevation, it was raining, cloudy, foggy, and cold and they were about a mile and 1000 feet above their camp.

The instructors determined that he did not have a spine injury and his vital signs were stable, but he was unable to bear weight on his right ankle. With much effort over three hours the instructors assisted him to a small level spot about a half mile away and 300 feet downhill. The other students went to camp, got gear, and brought it back up to spend the night at the small flat spot. The patient needed to be evacuated. Through communication via satellite phone from the instructors to the NOLS Rocky Mountain evacuation team it was clear it wasn’t going to happen that evening.

Early the next morning the patient’s condition had not improved, however, it was not raining and the clouds had lifted a little. The Rocky Mountain team contacted two lifeflight helicopter companies and got permission to land in the

wilderness from the U.S. Forest Service. One helicopter was able to slip in under the cloud layer and find the course who had moved a few hundred feet further downhill to another possible landing zone, but the helicopter was not able to land above 10,000 feet elevation. The second helicopter was unable to fly under the clouds to reach the course. With the weather window deteriorating the first helicopter landed at a lower elevation, off loaded gear to reduce their weight, then flew to the course, landed, picked up the patient, retrieved their gear, and brought the patient to the hospital in Lander.

The pain and swelling of the patient’s shoulder, knee, and ankle notwithstanding, x-rays indicated he did not have any fractures. Further examination after returning home confirmed there were no fractures and he was recovering.

The course—tired, wet, and relieved—regrouped, debriefed the event, and made a new plan to continue the course. The incident was an uncommon, but not unexpected, situation and the instructors responded in a professional, tireless, and effective manner under extremely difficult conditions and avoided anyone else from being injured or developing hypothermia.

The Rocky Mountain team was resourceful, patient, and persistent using their emergency plans to facilitate the evacuation.

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Lindsay Nohl

HIGHLIGHTS | FINANCIAL

CAREFUL PLANNING, EXPENSE MANAGEMENT, AND GENEROUS DONORS ACCOUNT FOR A SUCCESSFUL YEAR

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he 2021 fiscal year, which concluded on August 31, 2021, saw a significant rebound in gross and net revenues relative to last fiscal year, the result of careful planning and implementation by program divisions across NOLS as well as a continued focus on expense management.

While our program revenues did not return to pre-pandemic levels, largely because of the loss of some international programming, they did increase 39% over 2020.

Contributions remained very strong thanks to our large and generous donor base and investments grew significantly because of the continued rebound in global equity markets. As a result, total revenue and other support grew nearly 46% year over year. Total net assets grew to $120.6 million at August 31, 2021, from $103.7 million one-year prior.

Capital Assets The NOLS endowment (including funds functioning as endowment) had a tremendous year, ending the year at $70.1 million, from $55.9 million one year prior, the result of capital appreciation plus new gifts. NOLS also maintains a capital reserve that is invested alongside the endowment, and it experienced similar investment growth, with the reserve ending the year at $13.1 million.

Both of these valuations represent year-end records.

We are pleased that we did not have to turn to these pools of assets to sustain current operations beyond normal endowment spending even with the challenges presented by the pandemic. We anticipate that we will

14 | State of the School Report 2021

start to draw on the capital reserve as the transformation effort and related investments continue to unfold.

The endowment released $1.9 million in support of operations, following the spending formula long in use and consistent with spending in recent years, adjusted for growth. Property, plant, and equipment decreased by $807,000, the result of depreciation accruals netted against capital improvements.

Operating Results Program revenue strengthened relative to the 2020 fiscal year as we were able to run more field and classroom courses, although travel restrictions did limit course opportunities in some international and domestic locations.

The year-over-year programmatic gains were enhanced by the investment returns already noted as well as another strong fund-raising year, with more than $6 million in new contributions.

All in all, NOLS saw $46.4 million in revenue and other support, versus $31.8 million in the prior fiscal year.

At the same time, total expenses grew only 7.3%, from $27.5 million in fiscal year 2020 to $29.5 million this past year.

The exhibits that follow include summary balance sheets for FY21 and FY20; the growth of the NOLS endowment since 2014; a summary breakdown of revenue and expense by source; and statements of activities for FY21 and FY20.

NOLS Endowment $80,000,000 $70,000,000

$70,091,000

$60,000,000 $55,878,000

$50,000,000 $48,390,000

$45,000,000

$44,725,000

$40,000,000

$39,564,000

$35,000,000 $30,000,000

$34,484,000 $30,641,000

$31,159,000

$25,000,000 $20,000,000 $15,000,000 $10,000,000 2014

2015

2016

2017

2018

2019

2020

2021

nols.edu | 15

Molly Hagbrand

NOLS Balance Sheet

Expenses

Aug. 31, 2021 and 2020 Assets

2021

2020

Cash

$8,958,000

$6,794,000

Investments

21,250,000

18,039,000

Endowment investments

70,091,000

55,878,000

Receivables

1,667,000

970,000

Pledges receivable

1,992,000

2,410,000

Prepaid expenses

324,000

320,000

Merchandise

982,000

1,173,000

Other

1,079,000

1,039,000

Property, plant, and equipment net

26,171,000

26,978,000

$132,514,000

$ 113,601,000

2021

2020

Accounts payable

$4,626,000

$4,113,000

Student deposits

6,904,000

4,800,000

Line of credit

1,000,000

1,000,000

Total liabilities

11,899,000

9,913,000

Total assets Liabilities and net assets

16 | State of the School Report 2021

Net assets

120,615,000

103,688,000

Total liabilities and net assets

$132,514,000

$113,601,000

75% Program

23% Administration 2% Fundraising

Revenue 50% Tuition and Fees 13% Philanthropic 37% Investment Earnings

NOLS Statement of Activities

For the fiscal years ending Aug. 31, 2021 and 2020 Revenues and Other Support

Without Donor Restrictions

With Donor Restrictions

Total 2021

Total 2020

$22,188,000

-

$22,188,000

$15,470,000

Program revenues Tuition and fees Other program revenues

1,200,000

-

1,200,000

1,354,000

$23,388,000

-

$23,388,000

$16,824,000

Contributions and grants

2,402,000

3,652,000

6,054,000

6,593,000

Released from endowment

1,303,000

(1,303,000)

-

-

629,000

(629,000)

-

-

Total program revenue Fundraising activities

Net assets released from restriction for Program Buildings and Equipment Total fundraising revenue

1,150,000

(1,150,000)

-

-

$5,484,000

$570,000

$6,054,000

$6,593,000

665,000

932,000

1,597,000

1,490,000

6,340,000

9,012,000

15,351,000

6,882,000

52,000

-

52,000

45,000

Investment and other revenue Interest and investment income Net realized and unrealized gains on investments Gain (loss) on sale of equipment Total investment and other revenue

$7,057,000

$9,944,000

$16,948,000

$8,418,000

$35,929,000

$10,514,000

$46,443,000

$31,834,000

Program

22,065,000

-

22,065,000

19,169,000

Administration

6,752,000

-

6,752,000

7,577,000

Total revenue and other support Expenses

698,000

-

698,000

758,000

Total expenses

$29,515,000

-

$29,515,000

$27,504,000

Change in net assets

$6,414,000

$10,514,000

$16,928,000

$4,330,000

Fundraising

nols.edu | 17

Kyle Strachan

18 | State of the School Report 2021

NOLS Seven-Year Financial Highlights 2021

2020

2019

2018

2017

2016

2015

Total Assets

$132,514,000

$113,601,000

$110,288,000

$109,361,000

$100,573,000

$93,870,000

$88,587,000

Total Liabilities

11,899,000

9,913,000

10,930,000

12,257,000

11,519,000

12,742,000

12,443,000

$120,615,000

$103,688,000

$99,358,000

$97,104,000

$89,054,000

$81,128,000

$76,144,000

$23,388,000

$16,824,000

$32,343,000

$33,883,000

$33,239,000

$34,182,000

$32,998,000

Contributions

6,054,000

6,593,000

4,672,000

5,741,000

4,444,000

2,708,000

3,103,000

Investment

16,949,000

8,373,000

942,000

5,281,000

5,815,000

3,402,000

(1,497,000)

Net Assets Revenue Program

Other Total revenues

52,000

45,000

51,000

60,000

39,000

16,000

53,000

$46,443,000

$31,835,000

$38,008,000

$44,965,000

$43,537,000

$40,308,000

$34,657,000

22,065,000

19,169,000

27,330,000

28,133,000

28,056,000

27,764,000

26,516,000

698,000

758,000

992,000

963,000

964,000

890,000

858,000

Expenses Program Fundraising

6,752,000

7,577,000

7,432,000

7,819,000

6,591,000

6,670,000

6,755,000

Total expenses

Administration and Interest

$29,515,000

$27,504,000

$35,754,000

$36,915,000

$35,611,000

$35,324,000

$34,129,000

Change in net assets

$16,928,000

$5,330,000

$2,254,000

$8,050,000

$7,926,000

$4,984,000

$528,000

3,292

1,884

4,928

4,990

4,833

5,141

4,698

Number of Students NOLS field courses

12,787

13,399

24,139

22,487

21,711

20,771

19,010

Total students

16,079

15,283

29,067

27,477

26,544

25,912

23,708

Number of student days

NOLS classroom courses

93,685

125,059

224,158

227,235

227,853

231,912

224,256

Scholarship recipients

461

226

926

979

900

1,030

883

Scholarships awarded

$867,000

$773,000

$1,816,000

$1,921,000

$1,722,000

$1,930,000

$1,761,000

nols.edu | 19

Thank You Being disconnected from the world and living in such close quarters resulted in deeper connections and bonds formed amongst the group. The days were long, yet they flew right by with endless conversation and laughter.

As a group, we grew very close very quickly and there was a deep sense of safety and trust that we were able to find in each other. It is with this group that I learned the power of vulnerability, and its ability to propel and empower. I was comfortable sharing things that I’d always bottled up and deemed unimportant or insignificant to talk about.

These people—my coursemates— made me feel heard and accepted, and I came out of these conversations with so much weight lifted off my shoulders. Some of my most memorable stories over the course of the trip were the little and seemingly insignificant moments, from conversations like these around the campfire to gazing up at the most beautiful night skies.

Mark Finamore, Absaroka Backpacking

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Kirk Rasmussen

Thank You The past year or so, my focus has been to become more flexible and open to change. I tried the mountain biking team (a sport completely new to me), took up rock climbing, expanded my friendships, began cooking regularly, and coped with the coronavirus as best I could (along with the rest of the world).

Despite everything, NOLS has allowed me to grow the most in a short timeframe. From a place of relative security and a controlled environment, we entered the backcountry, where many elements of life are beyond control. I realized the objectivity of the natural environment; we had no control over storms, drought, or snowpack... only the capacity to adapt and find a solution.

I felt free to try new things without experiencing judgement, push myself knowing that my peers were supporting me, and be vulnerable if (and when) I failed. If I did fall, my peers were there to fall back on.

An understanding, flexible team gave me the power to lead, forgive myself, and grow. I gained invaluable self-confidence. I have always been ready to grant forgiveness to others; recently I’ve begun to give myself the same grace. It’s liberating. There are no limits when you have faith in yourself.

Mary Roalstad, Wilderness Medicine and Rescue Seminar

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Front and Back Cover Photos: Molly Hagbrand