1. The money was just not there to buy the facilities from the state and run the place, even at a reduced level -- and yes, substantial canvassing of the alumni and potential other supporters was done.
2. Had VMI gone private, the government said they would take ROTC away, meaning cadets could not be commissioned in the armed services.
I wish the Institute had gone private, but I after hearing the facts from my own Brother Rats on the Board of Visitors, I understand. It was a close run thing, the vote to go co-ed was won by just one vote.
As to the prayer issue, count be annoyed that the Feds are telling us what to do, but not especially upset that the prayers at BRC, DRC and SRC in the Mess Hall are gone: yes they were part of tradition, but at least in my day, with rare exceptions, they were more prefunctory than sincere. Typically, something like "Great God, Good Food, Let's Eat!"
VMI '70