Howard v. Harvard: Financial Takeaways From The HBCU-Ivy League Game Of The Century (Or So We Hoped)


This game was building in hype from the moment it was announced. The premier academic higher education institutions that represented the best of European American and the best of African America. Schools known best for their academics who also happen to have strong athletic heritages. Harvard University, founded in 1636, calls Boston, Massachusetts home. Arguably, the “capital” of WASP America. Howard University, founded in 1867, calls Washington, D.C. home and up until a decade ago was affectionately known as “Chocolate City” due to the high concentration of African American population. Today, thanks to gentrification it is starting to look a bit more like “Pumpkin Spice Latte City”, but that is another story all together. The game itself ended up resembling unfortunately the economic state of the two groups they represent and how sometimes no matter the size of the heart of the dog in the fight, the size of the dog actually matters. The final score: Harvard 62 v. Howard 17. HBCU Money decided to do a quick take on the financial reality of these two institutions since there is talk that HBCU-Ivy League games could be a “thing” in the future.

ENDOWMENTS:

Harvard has a 231 year head start and one could make the case even longer if we want to count African America’s struggle to hold onto financial assets from coming under attack through a myriad of issues like stolen land, Jim Crow, violence and the like for 100 years AFTER Howard’s founding. However, the situation is as the situation is. According to NACUBO, Harvard’s endowment at the end of fiscal 2018 stood at $38.3 billion, while Howard’s endowment stands at $688.5 million. That gives Harvard about $55 for every $1 that Howard has.

ALUMNI GIVING RATE:

While there are a lot of factor that tie into alumni giving rates, the fact remains it is one of the more even playing fields that HBCUs and PWIs can compete in head to head. Why? A donation of ANY size counts towards the alumni giving rate. From $1 to $100 million, it counts the same in the alumni giving rate. Harvard ranks second in the Ivy League conference with a giving rate of 33.1 percent according to Yale Daily News. Howard, like many HBCUs alumni giving rate fails to even break double digits with a 7 percent giving rate according to the Washington Post. This area may be more problematic in closing the institutional gap more than almost any other. Harvard’s alumni just by their demographic have more wealth than Howard alumni so to have an alumni giving rate that is 500 percent higher just exacerbates the problem. European Americans have over 10 times the wealth that African Americans have, which means that Harvard alumni are likely giving higher dollar amount donations and clearly at a higher percentage. If Howard and HBCUs are going to close the ground, then they are going to have to have a higher giving rate. HBCUs are not getting major donors, but they can get a lot small donors to give a lot to make up the ground.

RESEARCH EXPENDITURES:

Just as scary as the endowments, the research expenditures that both schools touts an immense institutional gap. Although, a grain of sunshine, Howard does lead all HBCUs in research expenditure, while Harvard ranks ninth among PWIs. That being said, Harvard’s annual research expenditure is 24 times the size of Howard’s. Harvard, ranked ninth nationally in research expenditures, has a 2017 RE of $1.1 billion. Howard, ranked 203rd nationally in research expenditures, has a 2017 RE of $45.8 million. Unfortunately, Harvard’s research expenditures have been trending upward the past few years, while Howard’s have been trending downward.

ATHLETIC BUDGETS:

Both institutions compete in the FCS, formerly known as Division 1-AA, but there have been 41 FCS champions since the formation of the playoff in 1978 and only one HBCU has ever participated in the championship game. Florida A&M University won the FCS championship its inaugural season and no HBCU has been back since. The Ivy League on the other hand is one of three FCS conferences that simply opts out of the playoff all together. In the 1950s, the league itself simply considered sports not even a secondary priority some would say. That being said, Harvard’s athletic budget is still 70 percent larger than Howard’s and larger than virtually every HBCU. Harvard’s $17.6 million makes a world of difference on the football field compared to Howard’s $10.1 million. The Ivy League average on athletics is $27.1 million, while the average in the SWAC/MEAC is $9.7 million. This makes future contest not very exciting too look forward too if this is the margin by which our schools will be competing against.

BILLIONAIRES:

A potentially odd category to finish with, but one clearly relevant. Resources matter in higher education and when Harvard’s endowment is almost 20 times the size of all HBCUs combined, then you have to wonder just how the gap can be closed among HBCUs and PWIs. As of 2018, Harvard has 188 alumni who were billionaires. The most of any college in America. Howard University have none. HBCUs all told have two (Oprah Winfrey and Ann Kroenke).

Howard’s largest donation in school history was $6 million in 1987, which adjusted for inflation is $13.5 million. Harvard’s largest donation seems to be a moving target with billionaire after billionaire competing for the top spot. In comparison, Harvard received a $400 million gift in 2015 from one of its 188 billionaire alumni. No HBCU has ever received a donation of $100 million or more.

 

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The Million Dollar Gift Club: 2018’s Seven Figure Donations To HBCUs Led By Spelman College


An uptick overall, but more importantly a bounce back for HBCUs is how 2018 would be described in the land of the big philanthropy. The Center for Philanthropy reported 497 gifts of $1 million or more to all colleges and universities. After a sluggish few years, HBCUs have seen the most $1 million plus gifts since 2014. In terms of pure dollar amount, this year’s class has bested them all since HBCU Money began tracking the data six years ago with $43 million combined among the HBCUs obtaining gifts.

High-quality donors (who give consistently and over their lifetime will probably give six to seven figures of donations) continue to show up for HBCUs, but still not representative of HBCUs presence in America’s higher education landscape. While HBCUs represent three percent of the country’s colleges, this year only 1.4 percent of the 497 $1m plus donations found their way to an HBCU. Tranformative donors (who can change the paradigm of an entire institution with one donation) continue to elude HBCUs all together, while PWI/HWCUs landed 13 donations of $100 million plus in 2018.

The gap this year between top seven PWI/HWCU gifts totaled $2.94 billion while HBCUs as mentioned totaled $43 million or a $68 to $1 ratio.

1. Ronda E. Stryker & William D. Johnsont (pictured) – $30 million
Recipient: Spelman College
Source of Wealth: Health products

2. Seth & Beth Klarman  – $5 million                                                        Recipient: Spelman College
Source of Wealth: Finance

3. Roland Parrish – $3 million
Recipient: Fisk University
Source of Wealth: Food & beverage

4. Gene & Patsy Ponder – $2 million
Recipient: Wiley College
Source of Wealth: Manufacturing

5. Kenya & Rainbow Barris (tie) – $1 million                                                        Recipient: Clark Atlanta University
Source of Wealth: Entertainment

5. Irvin & Pamela Reid (tie) – $1 million
Recipient: Howard University
Source of Wealth: Education

5. Denzel Washington (tie) – $1 million
Recipient: Wiley College
Source of Wealth: Media & entertainment

 

Source: Chronicle of Philanthropy

 

 

Donate To Every School In The CIAA/SIAC Challenge


How many HBCUs have you donated money too? Below are the jump pages for every CIAA/SIAC school and/or foundation’s giving page. We challenge HBCU alumni to give to their own and as many HBCUs as possible.

There are 25 HBCUs between the CIAA and SIAC with approximately 75,000 students. The two historic HBCU conferences cover a lot of geography from the Midwest to the Southeast and up the eastern coast.

Albany State University Give Now

Albany State University Foundation

Benedict College Give Now

Bowie State University Give Now

Bowie State University Foundation

Central State University Give Now

Central State University Foundation

Claflin University Give Now

Clark Atlanta University Give Now

Elizabeth City State University Give Now

Elizabeth City State University Foundation

Fayetteville State University Give Now

Fort Valley State University Give Now

Fort Valley State University Foundation

Johnson C. Smith University Give Now

Kentucky State University Give Now

Kentucky State University Foundation

Lane College Give Now

LeMoyne-Owen College Give Now

Lincoln University Give Now

The Lincoln Fund

Livingstone College Give Now

Miles College Give Now

Morehouse College Give Now

Paine College Give Now

Saint Augustine’s University Give Now

Savannah State University Give Now

Savannah State University Foundation

Tuskegee University Give Now

Virginia State University Give Now

Virginia State University Foundation

Virginia Union University Give Now

Winston-Salem State University Give Now

Winston-Salem State University Foundation

Donate To Every School In The SWAC/MEAC Challenge


How many HBCUs have you donated money too? Below are the jump pages for every SWAC/MEAC school and/or foundation’s giving page. We challenge HBCU alumni to give to their own and as many HBCUs as possible.

There are 21 HBCUs between the SWAC/MEAC. That means there are 21 opportunities to give that stretch from Texas to Maryland and impact the institutional opportunities of tens of thousands of African American students, their families, and our communities. How many will you impact?

Alabama A&M University Give now

Alabama A&M University Foundation

 

Alabama State University give now

Alabama state university foundation

 

alcorn state university give now

alcorn state university foundation

 

University of Arkansas Pine Bluff give now

 

Bethune Cookman University Give Now

Mary McLeod Bethune Foundation

 

coppin state university give now

CSU Development Foundation

 

Delaware State University give now

Delaware state university foundation

 

florida a&m university give now

Florida A&M University Foundation

 

Grambling State University Give Now

Grambling University Foundation

 

Howard University Give Now

 

Jackson State University Give Now

Jackson State Development Foundation

 

University of Maryland Eastern Shore Give Now

 

Mississippi Valley State University Give Now

Mississippi Valley State University Foundation

 

Morgan State University Give Now

Morgan State University Foundation

 

Norfolk State University Give Now

NSU Foundation

 

North Carolina A&T State University Give Now

North Carolina A&T Real Estate Foundation

 

North Carolina Central University Give Now

NCCU Foundation

 

Prairie View A&M University Give Now

Prairie View A&M Foundation

 

South Carolina State University Give now

South Carolina State University Foundation

 

Southern University and A&M College Give Now

Southern University System Foundation

 

Texas Southern University Give Now

 

 

 

 

 

 

 

 

 

 

 

Fastest Growing & Highest Paying Jobs By Bachelors, Masters, & PhD/Professional


Despite the ongoing student loan crisis at the moment, the statistics of jobs that pay well still demand a college degree. Now, where a college degree comes from, what the economy of your geographic region leans on, and a whole host of other factors certainly play a role. Yet, despite all of this, according to the Bureau of Labor Statistics the only jobs with a median pay currently over $75,000 in 2018 and whose projected growth rate is “Much Faster Than Average” are those associated with a minimum of a bachelor’s degree or higher.

Jobs by degree classification are listed in alphabetical order:

BACHELORS

masters

doctoral or professional

In the end, college must be about our own personal growth towards what we believe is best for us. However, many students and families lack the information of the plethora of opportunities and career paths that are available to them. For African Americans this becomes especially true and results in a tendency towards low-paying career paths. A fundamental problem for a community that needs higher-earners desperately. The demand for these jobs is high and pays well. Who is to say one can not major in Art History and still become a veterinarian and build enough wealth that they can retire early and afford to teach art history in their community for free? Or open their own gallery? Building wealth early gives us opportunities later and in that vein, we hope this information provides a bit more for your educational arsenal.