Monthly Archives: August 2012

HBCU Money™ B-School: Intergenerational Equity

Refers to the concept that tomorrow’s students (as well as faculty and programs supported by the endowment) should benefit from the endowment to the same degree that today’s students do. In essence, this means that an endowment’s value to today’s generation is the same as the inflation-adjusted value for future generations.

Source: NACUBO

The HBCU Endowment Feature – Kentucky State University

School Name: Kentucky State University

Median Cost of Attendance: $20 447

Undergraduate Population: 2 606

Endowment Needed: $1 065 697 600

Analysis: Kentucky State University needs approximately $1 billion dollars for its entire student body to attend debt free. This is an HBCUs with one of the highest European American populations (20%) so it presents a bit of a conundrum on  strategy. Given HBCUs low alumni donor rate there is not a lot if any information on European Americans that attend HBCUs and their giving pattern either as undergraduates or graduates. Interestingly enough while Kentucky State University strives for “diversity” its counterpart University of Kentucky maintains a 90% European American population and a 5.5% African American population. The endowment at Kentucky State University, currently at $8.8 million, would put 0.8% of its undergraduate population through school debt free annually. It is hard to know what the future of KSU holds as it seems to be trending toward that of past HBCUs like West Virginia State University and Bluefield State College. In a state with a less than 8% African American population and KSU being the only HBCU in Kentucky it makes KSU geographically vital but without a stronger buy in from the African American population in Kentucky its endowment could rest strongly in the hands outside the African American community.

As always it should be noted that endowments provide a myriad of subsidies to the university for everything from scholarship, faculty & administration salaries, research, and much more.

Augusta National Golf Club: A Pacifier Not Empowerment For Women

By William A. Foster, IV

“Power only steps back in the face of more power.” – Malcolm X

APTOPIX Masters Golf

I always start with this example when discussing group power. Oprah Winfrey, who is roughly worth $2 billion, moves into a neighborhood of nine European Americans. Now for the sake of this example they could be Arab, Asian, Latino, or if you want to base it around gender with nine men and it would not change the dynamic and point. The neighborhood she moves into each household is worth $500 million and share the same fundamental and cultural values (social capital). Who has control of the neighborhood? Inevitably, because most people do not understand group dynamics and strategy they tend to assume Ms. Winfrey does. Let us examine why she does not from a SEP (social, economic, and political interest) point of view. Socially, she is the outsider who does not share the cultural or gender values of the group. This is not to say they have nothing in common but there are some fundamental differences that they differ on based on their social and cultural norms. Economically, from the outlook it seems as once again she is the winner. Wrong again, as the social values bind them it also binds their economics as a defense weapon against outsiders. In this case the nine households versus Ms. Winfrey equates to $4.5 billion against her $2 billion. Politically, it is pretty obvious to see she is at a loss. Any voting done on new neighborhood policies she would be outvoted 9-1 almost every time (see Supreme Court and party lines). This is not to imply these nine will always act in step. It is to say that the probability they do is highly increased in their favor and not in hers. Ultimately, that is what it is about. Ensuring the probability or odds are stacked in your favor for success whatever you deem that to be.

My views on Afrocentrism do not differ from my views on feminism. That is to say my view on any group that is seeking power will never gain the power it seeks if it is always seeking to force its way into institutions only to still be socially, economically, and politically outgunned as you saw in the example. Martha Burk would have you believe there was a victory in the admitting of two women at Augusta National Golf Club. I am going to examine the social, economic, and political realms as why I do not believe it is a victory and you can decide.

I have never believed in going anywhere I wasn’t wanted especially when I have the capacity to define where I want to go myself. The social implications of this situation didn’t empower women. It just re-validated that in order be of value you have to be where the men are. Are you still not giving the power to men? Yes, actually you are. If you wanted to impress upon the networking power that Augusta National Golf Club holds then these two women who were admitted would have said thank you but no thank you we can build our own. These women are going to socially be viewed as tokens that were admitted under public pressure and still will be social outsiders in the club. Just because you let someone in through the initial barrier does not mean you will not have different ways of excluding them. The beauty of protecting ones SEP interest is that as groups infringe on certain barriers you have created your strategy for creating new barriers evolves. I dare say the conversations that use to be had at the bar potentially now will only be had in the locker room. Are we to assume they will let the women in there as well? A more powerful statement would have been for young women to see those two women along with others in business form their own country club for women where they would be able to set the values of the club that promote the greatness of women in business and allow them to open networks with each other and discuss challenges as well as opportunities in industry amongst each other. To go even further would be a country club designed by a leading female architect, financed by a leading female banker, and anything else that would go into establishing of a place for women, built by women, and for women. What looks more powerful, two female members out of three hundred or three hundred out of three hundred and a foundation laid in every facet by women?

The economics of this admittance again we can examine the obvious. Dr. Condoleeza Rice is worth millions and Mrs. Darla Moore-Rainwater is worth based on her philanthropic donations in the hundreds of millions. Bill Gates and Warren Buffett who are members of Augusta are worth approximately a combined $100 billion. That’s just two of the two-hundred and ninety-eight men. Imagine now for a moment a golf club with the likes of Dr. Rice, Mrs. Moore-Rainwater, Sheryl Sandberg (COO of Facebook), Marissa Myers (CEO of Yahoo), Sheila Johnson (Co-Founder of BET), Linda Johnson-Rice (Owner of Johnson Publishing Company), and the list could go on and on. Now that is a room of economic might for women who dare I say would be able to make business deals among themselves and increasing the probability and opportunities for wealth into the arms of women. No separate locker room needed.

Politically this would boil down to the policies and outreach of the club. At current there is no LPGA Master’s Tournament. How hard do you think that would be able to get sponsored by a golf club that is socially and economically controlled by women? It would be like waking up in the morning and turning on the light switch. If you want it to be sponsored by the Augusta National Golf Club you would have to get 50% of the male membership to side with the two female members. Assuming they don’t feel socially pressured to not look like they are just voting for it because they are women. Now, where have I heard that accusation before? Again, if they control the club socially, economically, and politically nobody would question their motives because the motives are part of the very fabric of the club’s purpose.

As I stated in the beginning the unfortunate assumption that always kicking your way into an institution you would not have control over is somehow progress is missing the point of what capitalism is built on. Capitalism is built on ownership. As someone who has a teenage daughter I believe it is more powerful for her to see three hundred business women interacting with each other and making decisions in her interest than for her to see two women out of three hundred members where her interest for better or worse are marginalized. She no longer would feel like the odds are stacked against her. Success as a woman would be seen as the rule as opposed to the exception to it. She would know there is a place for her that doesn’t see her as a token they see her as just another businesswoman who is in the locker room headed out to the greens to network and maybe make the deal of the century. Tee-off ladies.

HBCU Money™ Business Book Feature – Ties That Bind: The Story of an Afro-Cherokee Family in Slavery and Freedom

This beautifully written book tells the haunting saga of a quintessentially American family. It is the story of Shoe Boots, a famed Cherokee warrior and successful farmer, and Doll, an African slave he acquired in the late 1790s. Over the next thirty years, Shoe Boots and Doll lived together as master and slave and also as lifelong partners who, with their children and grandchildren, experienced key events in American history–including slavery, the Creek War, the founding of the Cherokee Nation and subsequent removal of Native Americans along the Trail of Tears, and the Civil War. This is the gripping story of their lives, in slavery and in freedom.
Meticulously crafted from historical and literary sources, Ties That Bind vividly portrays the members of the Shoeboots family. Doll emerges as an especially poignant character, whose life is mostly known through the records of things done to her–her purchase, her marriage, the loss of her children–but also through her moving petition to the federal government for the pension owed to her as Shoe Boots’s widow. A sensitive rendition of the hard realities of black slavery within Native American nations, the book provides the fullest picture we have of the myriad complexities, ironies, and tensions among African Americans, Native Americans, and whites in the first half of the nineteenth century.

The HBCU Money™ Weekly Market Watch

Our Money Matters /\ August 24, 2012


African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $3.89 (3.95% DN)

Carver Bank New York (CARV) $3.80 (1.54% DN)

Radio One (ROIA) $0.82 (UNCH)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  146.09 (UNCH)

Botswana Stock Exchange (BSE)  7 342.57 (0.15% DN)

Ghana Stock Exchange (GSE)  N/A

Nairobi Stock Exchange (NSE)  83.84 (N/A)

Johannesburg Stock Exchange (JSE) 35 794.12 (N/A)

International Stock Exchanges

New York Stock Exchange (NYSE) 8 047.86 (0.45% UP)

London Stock Exchange (LSE)  3 000.62 (0.02% DN)

Tokyo Stock Exchange (TOPIX)  757.23 (0.96% DN)


Gold 1 672.90 (0.01% UP)

Oil 96.15 (0.12% DN)

*All quotes reported as of 2:00 PM Eastern Time Zone