Black Mountain was founded in 1933 by John Andrew Rice, Theodore Dreier, Frederick Georgia, and Ralph Lounsbury, who were dismissed as faculty from Rollins College in a seminal academic freedom incident, specifically for refusing to sign a loyalty pledge, for which Rollins was formally censured by the American Association of University Professors. The institution was established to "avoid the pitfalls of autocratic chancellors and trustees and allow for a more flexible curriculum," and "with the holistic aim 'to educate a student as a person and a citizen.'" The school was originally funded through a $10,000 gift from "Mac" Forbes, a former Rollins College faculty member, after the founders were unable to raise funds from traditional sources.:7