HBCU Money’s 2015 Top 10 HBCU Endowments


 

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The keyword for  2015’s HBCU endowments – concerning. Two bellwether HBCU endowments, Spelman College and Hampton University, saw negative declines in their endowment’s market value. Outside of Howard University storming ahead at 11.7 percent, no other HBCU endowment saw double digit gains with North Carolina A&T State University missing the mark by 10 basis points. This is a far cry from 2014’s list when 9 out of 10 reported double digit gains. If there is any solace in the numbers and there is not much, it is that the top ten endowments of our HWCU counterparts had no endowments return double digit gains and also saw 2 out of their 10 with negative declines in market value.

Although there are some notable absences** from our top ten list, it certainly would not change the reality that still only three HBCUs have endowments above the $200 million mark and none have reached the $1 billion plateau, although Howard University, despite its noted financial issues seems to be headed there unabated and without much competition from Spelman College or Hampton University, the only real challengers. John Wilson, president at Morehouse College, in an interview with Harvard Magazine in 2013 noted, “is the need to build endowments; less than $200 million makes you, by definition, unhealthy.” This still remains the case and as a baseline means that 97 percent of all HBCUs are financially unhealthy. Even more concerning is that there seems to be no real plan in place to address this. A canary in the coal mine though is that donations of $1 million or more to HBCUs jumped from one in 2013 to nine in 2014, but donations of the eight and nine figure variety, also known as transformative donations, are still absent at HBCUs.

As always if you do not see your HBCU in the top 10 – DONATE!**

Endowment in millions $000 (Change in Market Value*)

1. Howard University – $659 639 (11.7%)

2. Spelman College – $362 986 (-1.1%)

3. Hampton University – $263 237 (-8.7%)

4. Meharry Medical College – $139 054 (1.5%)

5. Tennessee State University – $51 416 (1.8%)

6. Texas Southern University – $48 684 (4.5%)

7. Virginia State University – $47 432 (4.9%)

8. North Carolina A&T State University – $48 100 (9.9%)

9. Winston-Salem State University – $37 219 (8.5%)

10. University of the Virgin Islands – $34 274 (-9.0%)

Take a look at how an endowment works. Not only scholarships to reduce the student debt burden but research, recruiting talented faculty & students, faculty salaries, and a host of other things can be paid for through a strong endowment. It ultimately is the lifeblood of a college or university to ensure its success generation after generation.

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*Note: The change in market value does NOT represent the rate of return for the institution’s investments. Rather, the change in the market value of an endowment from FY2013 to FY2014 reflects the net impact of: 1) withdrawals to fund institutional operations and capital expenses; 2) the payment of endowment management and investment fees; 3) additions from donor gifts and other contributions; and 4) investment gains or losses.

** Notable exclusions to the list that HBCU Money believes would otherwise make the top ten are Morehouse College, Tuskegee University, Dillard University, and Florida A&M University. Morehouse College, Tuskegee University, and Dillard University have never reported their endowment to NACUBO in the time HBCU Money has been recording its annual top ten endowments. Florida A&M University who was number five last year did not appear in this year’s list from NACUBO.

Additional Notes:
NACUBO Average Endowment – $648 074 (1.7%)
NACUBO Median Endowment – $115 828 (-0.9%)
Top 10 HWCU Endowments combined – $185.4 billion
Source: National Association of College & University Business Officers

HBCU Money™ Turns 4 Years Old


By William A. Foster, IV

As you enter positions of trust and power, dream a little before you think. – Toni Morrison

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Going into our fourth year broods us with a certain calm. HBCU Money™ continues to be a labor of love and passion. The past twelve months while not seeing the growth we expected were still progressive towards our ultimate goal of being a full service financial journalism company. Last year, we brought HBCU Politics™, a political journalism site, into our fold completely with plans to add more sites in the coming years. We believed then and we believe now that there can never be too many quality voices speaking to the eclectic interest of HBCUers around the world. Entrepreneurship is about patience and perseverance. Something we here at HM continue to exude in spades despite setbacks along the way. The HBCUpreneur Corner™ continues to highlight the growing presence of entrepreneurs coming from HBCU ranks who are no longer content at getting jobs, but creating them. Our interview last year with HBCU endowment star, The University of Virgin Islands’ executive director Dr. Haldane Davies, was another shining moment for us giving voice to HBCUs who are lesser known by the mainstream as they forge ahead building a stronger foundation for generations to come. These stories and more are the ones we will continue to tell along with the pertinent economic, financial, and investment information that is vital to our community and its growth.

It is a continued honor to serve as Editor-In-Chief of HBCU Money™ and look forward continuing to do so. There is no time to rest. Enjoy the moment. Now, let us get back to work because as our motto states “Our Money Matters”.

St. Louis Fed’s Chief Economic Adviser Discusses Demographics, Education, And Race Of Wealth


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“William R. Emmons, senior economic adviser at the Center for Household Financial Stability at the St. Louis Fed, discusses key findings from the center’s research on demographics—specifically race, ethnicity, education and age—and the relationship of those factors to wealth accumulation.” – via St. Louis Fed

3e9c4900-5ce5-451f-9003-6c469db793c3For the full presentation and video click here.

HBCU Money™ Business Book Feature – Panic on Wall Street: A History of America’s Financial Disasters


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From the Publisher

Here is a book dealing with a subject endemic to many Eastern and Western countries — financial panic. Covering 12 of the most harrowing moments in American financial history from 1792 to 1962, it demonstrates that Wall Street and the public are at once the heroes, villains, and victims of past panics.

From the Inside Flap

… The episodes depicted were dramatic, had an impact on Americans of the time, and have generally been neglected by other financial historians. Some of the most notable are the Western Blizzard of 1857, the Great Crash of 1929, and the Kennedy Slide of 1962. Not all were catalysts for depressions, but they illustrate the complexity of such events and that the causes are varied: political, military, economic, and even psychological. This book is fascinating reading for anyone who fears that we could suffer through another financial panic.

HBCU Money™ Dozen 12/14 – 12/18


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Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.

Research

5 ways 2015 changed enterprise software forever l CIOonline http://trib.al/Xxtp3aA

Apple and IBM partnership yields 100 iOS enterprise apps l CIOonline http://trib.al/1pFDyUg

Why social media needs to have a code of ethics for clinical research l CIOonline http://ow.ly/W6qEo

Migraine changes your world. It’s time for a new approach to treatment l New Scientist http://ow.ly/W6qIY

Where in the world have we achieved 100% renewable power? l Renewable Cities http://ow.ly/W5rhU

What made #CITES shark protections so successful? l Pew Environment http://pew.org/1Nu5T37

Federal Reserve, Central Banks, & Financial Departments

What being #bilingual can do for your #brain l WEF http://wef.ch/1O8aaEm

What are vertical farms, and can they really feed the world? l WEF http://wef.ch/1Pay3hZ

#Remittances, often the 1st financial service #migrants use. What’s the cost? l World Bank http://wrld.bg/W5a9H

A history of U.S. debt limits l NBER http://bit.ly/1OAWWQY

Why friends shouldn’t go into business together l WEF http://ow.ly/W6rnO

Price Equalization Does Not Imply Free Trade l St. Louis Fed http://bit.ly/1Zg1UKB

hank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

The HBCU Money™ Weekly Market Watch


Our Money Matters /\ December 18, 2015

A weekly snapshot of African American owned public companies and HBCU Money™ tracked African stock exchanges.

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $7.95 (0.00% UNCH)

M&F Bancorp (MFBP) $3.05 (0.00% UNCH)

Radio One (ROIA) $1.67 (5.03% UP)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  290.90 (0.91% DN)

Botswana Stock Exchange (BSE)  10 601.81 (0.00% UNCH)

Ghana Stock Exchange (GSE)  1 969.14 (12.91% DN)*

Nairobi Stock Exchange (NSE)  145.55 (N/A)

Johannesburg Stock Exchange (JSE) 48 717.28 (1.99% DN)

International Stock Exchanges

New York Stock Exchange (NYSE) 9 987.53 (1.24% DN)

London Stock Exchange (LSE)  3 348.10 (0.70% DN)

Tokyo Stock Exchange (TOPIX)  1 537.10 (1.76% DN)

Commodities

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November 2014 To November 2015 Average Earnings – Up 2.3 Percent


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October 2014 Average Earnings: $24.68

October 2015 Average Earnings: $25.25

Month Change: Up 0.2 Percent