Boy Scouts Face Challenges While Nearing the End of Bankruptcy

Mending a tainted reputation isn’t an easy task, as the Boy Scouts of America (BSA) are experiencing. Following 82,000 claims received by prior BSA members, the organization has struggled to recover financially, as well as to recover their reputation.

Over the years, BSA has gained a legacy surrounding sexual abuse. Most parts of a compensation plan were approved by a bankruptcy court involving $2.5 billion or more, in order to end the scouts’ chapter 11 bankruptcy case. A chapter 11 bankruptcy case includes a plan for reorganization of a business/organization, and that is the route The Boy Scouts of America took. Ending chapter 11 is also in hopes to prevent future sexual abuse lawsuits within the organization. It is unclear if the organization will still be able to attract participants, but ending chapter 11 and getting back to normal function will be the test. 

BSA’s chapter 11 bankruptcy case was the biggest case filed to resolve thousands of sexual abuse claims. The bankruptcy court received hundreds of letters from survivors of sexual abuse while in the Boy Scouts, detailing how it has effected them and how they feel about the court action. The scouts are now nearing an end of bankruptcy, while doubts still circulate. The scouts are hoping for a chance at starting over, however the decline in membership poses further challenges. 

Troop sponsor and insurance company contributions reach compensation for victims over $2.5 billion. Currently, the Scouts are responsible for around $239 million in professional and other expenses, which will increase as the case goes on. 

The scouts have apologized for their mistakes in protecting the children, and also touched on how most of the claims were from before their extended safety protocols were put in place 30 years ago. They now follow very strict protocols in order to prevent any negative interaction, such as requiring at least two adults to be involved in every interaction with scouts. 

It isn’t going to be an easy journey for The Boy Scouts of America to gain trust and respect from families again. It is too soon to say if BSA will be what it once was, but they are putting in effort to revitalize the organization the best they can.