School Name: Virginia State University
Median Cost of Attendance: $20 966
Undergraduate Population: 5 075
Endowment Needed: $2 128 048 960
Analysis: Virginia State University needs $2.1 billion to allow all of its undergraduates to attend the university debt free annually at its current population and cost of attendance. VSU has both a foundation and university endowment that serve the institution and student body.The university’s endowment is $22.5 million as reported to NACUBO annual survey meaning if all of the endowment was dedicated to scholarship they would have enough for 1.07% of their student body to go to school debt free annually. On the brighter side, VSU is one of the fastest growing endowments in terms of capital and investment returns and with a strong push among alumni could see itself break into the rare air of HBCU endowments with $100 million plus in assets.
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.
Over the past three decades, racial prejudice in America has declined significantly and many African American families have seen a steady rise in employment and annual income. But alongside these encouraging signs, Thomas Shapiro argues in The Hidden Cost of Being African American, fundamental levels of racial inequality persist, particularly in the area of asset accumulation–inheritance, savings accounts, stocks, bonds, home equity, and other investments. Shapiro reveals how the lack of these family assets along with continuing racial discrimination in crucial areas like homeownership dramatically impact the everyday lives of many black families, reversing gains earned in schools and on jobs, and perpetuating the cycle of poverty in which far too many find themselves trapped.
Shapiro uses a combination of in-depth interviews with almost 200 families from Los Angeles, Boston, and St. Louis, and national survey data with 10,000 families to show how racial inequality is transmitted across generations. We see how those families with private wealth are able to move up from generation to generation, relocating to safer communities with better schools and passing along the accompanying advantages to their children. At the same time those without significant wealth remain trapped in communities that don’t allow them to move up, no matter how hard they work. Shapiro challenges white middle class families to consider how the privileges that wealth brings not only improve their own chances but also hold back people who don’t have them. This “wealthfare” is a legacy of inequality that, if unchanged, will project social injustice far into the future.
Showing that over half of black families fall below the asset poverty line at the beginning of the new century, The Hidden Cost of Being African American will challenge all Americans to reconsider what must be done to end racial inequality.
Have you ever wondered just how much it would take for every student to attend debt free at your HBCU, why the size of endowments are so vital, and why alumni donor rates are critical to an institution’s long term success? Well wonder no more.
Every Tuesday we will feature a different HBCU and their endowment needs. We will keep the endowment needs strictly to how much principal a school would need to generate in annual returns for every student to attend debt free in their undergraduate programs. We will use an HBCU’s cost of attendance and their current undergraduate population. The figures will be based on the current economic environment based on returns of 5 percent.
An example is HBCU XYZ has 1 000 students and the cost of attendance is $20 000 annually. The total cost for those 1 000 students would be $20 000 000. In order for HBCU XYZ to have those students attend debt free annually with 5 percent returns the school would need an endowment of $400 000 000.
We will also do these post for the 5 HBCU conferences combined. If you would like to have your school featured more quickly please email us at HBCUMoney@yahoo.com and provide the following information.
Number of Undergraduates
Cost of Attendance
HBCU Money™ Staff