Monthly Archives: February 2013

2012’s Top 10 HBCU Endowments

Posted on February 5, 2013 by | 9 comments

2012’s Top HBCU Endowments

This past year was a tough year for HBCU endowments. The top ten HBCU endowments saw a combined decline of $100 million dollars this past year while their top ten HWCU competitors saw an increase of $100 million. The $100 million comprises 0.07 percent of top ten HWCU endowments but comprises a staggering 7.0 percent of top ten HBCU endowments.

There were some shakeups in the top ten HBCU endowments with Meharry Medical College leaping over Florida A&M University for the number four spot in the top ten. Virginia State University becomes the new kid on the block entering the top ten at the number ten spot knocking Winston-Salem State University out of the position from last year. Virginia State University takes the leap into the top ten thanks to having the strongest return on investment of all top ten HBCU endowments with a solid 10.3 percent return on investment in an extremely rough economic climate for America’s college and university endowments in general. The Trojans were the only HBCU in the top ten to return double digits on its endowment last year. Texas College, although not making the top ten had the best return on investment of HBCUs reporting with 12.8 percent. Overall, only three out of the ten top HBCU endowments saw a positive return on investments. The MEAC holds four of the top ten spots and North Carolina A&T State University sits just outside of the top ten at number eleven. Howard University saw the most significant decline losing 12.0 percent and raising some real questions about whether it will come far enough back into the pack to allow Spelman College and Hampton University to make a run at becoming the first HBCU to the coveted one billion dollar mark.

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

Endowment in millions (Investment Return)

1. Howard University

$460 712  (-12.0%)

2. Spelman College

$309 139 (-5.4%)

3. Hampton University 

$232 551 (-3.1%)

4. Meharry Medical College

$112 455 (4.6%)

5. Florida A&M University

$107 743 (-3.4%)

6. Morehouse School of Medicine

$66 925 (-8.2%)

7. Bethune Cookman University

$41 818 (-1.6%)

8. Texas Southern University

$37 962 (4.9%)

9. Tennessee State University

$37 987 (-0.6%)

10. Virginia State University

$33 290 (10.3%)

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.

endowment

Additional Notes:
NACUBO Average Endowment – $491, 637 (-0.7%)
NACUBO Median Endowment – $90,051 (-1.8%)
Top 10 HWCU Endowments combined – $142.2 billion
Top 10 HBCU Endowments combined – $1.4 billion
Source: National Association of College & University Business Officers

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The HBCU Endowment Feature – Lane College

Posted on February 4, 2013 by | Leave a comment

Lane_College

School Name: Lane College

Median Cost of Attendance: $14 600

Undergraduate Population: 2 002

Endowment Needed: $584 584 000

Analysis: Lane College needs approximately $585 million dollars to allow of its undergraduates to attend debt free annually. The school is located in Jackson, Tennessee and is the halfway point between Memphis and Nashville. A geographic gold mine if properly implemented into strategy. The ability to pull from two of the three major cities in Tennessee should allow for it to endear itself to prospective students who want to be away from home but still within driving distance. Being in a city that has been openly hostile to diluting the African American political power in the city could directly impact the resources available to the school. Lane College should take a more active role in influencing the policies to increase its economic absorption of local resources. Its student body comprises 4.2 percent of the voting age population in the city. While that does not sound like a large number on the national scale in small town politics that is often more than enough to create an influential voting bloc. Lane College also has the opportunity with almost 50 percent of the town’s approximately 65 000 population being African American provide a number of services to the community that would allow it to increase revenues that could grow the endowment. The college is in a prominent position to influence a large part of western Tennessee and needs to leverage its geographic advantage. Ultimately, this will allow the school to produce a donor pool that could push into the low eight figure category over the next decade and creating one of the biggest influence per endowment dollar of any liberal arts HBCU in the nation.

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HBCU Money™ Business Book Feature – The Science of Success: How Market-Based Management Built the World’s Largest Private Company

Posted on February 3, 2013 by | Leave a comment

150px-KochCover

 

Charles Koch may very well be the most successful businessman you’ve never heard of. Under his leadership, Koch Industries has become a dynamic and diverse enterprise that Forbes called “the world’s largest private company.”

This groundbreaking book includes the same material used by the leaders and employees of Koch companies to apply Market-Based Management (MBM) to get results. In it, Charles Koch outlines the unique management methodology developed and implemented by Koch Industries. Koch credits MBM for its 2,000-fold growth since 1967, with today having 80,000 employees in 60 countries and with $90 billion in revenues in 2006. MBM is a scientific approach to management that integrates theory and practice, and provides a framework for dealing with the ongoing challenges of growth and change. There really is a science behind success, and it can be applied to any organization.

MBM is rooted in the Science of Human Action, and is defined by five dimensions:

  • Vision—Determining where and how the organization can create the greatest long-term value
  • Virtue and Talents—Helping ensure that people with the right values, skills and capabilities are hired, retained and developed
  • Knowledge Processes—Creating, acquiring, sharing and applying relevant knowledge, and measuring and tracking profitability
  • Decision Rights—Ensuring the right people are in the right roles with the right authority to make decisions and holding them accountable
  • Incentives—Rewarding people according to the value they create for the organization

When these dimensions are applied in an integrated, mutually reinforcing manner, they create continuous transformation and positive growth. Any organization—corporation, small business, nonprofit, government agency—can apply these proven principles.

In addition to an in-depth discussion of MBM’s five dimensions, this book also draws on Koch’s candid examples of his company’s successes and failures. Born out of a life-long study of economics, science, philosophy, psychology, political theory and history, MBM is essentially a practical business application of the principles that have led to innovations and the most prosperous, peaceful, robust economies in history. Let this book show you how to apply the same management philosophy that has served Koch Industries so effectively. MBM will benefit you, your company, your customers and your employees. For more information about Market-Based Management, visit http://www.mbminstitute.org.

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HBCU Money™ Dozen Links 1/28 – 2/1

Posted on February 2, 2013 by | Leave a comment

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.

Government Departments

Kentucky Wetland Restoration Attracts Endangered Cranes l USDA http://ow.ly/hlVtC

House committees to meet on economic outlook, immigration, government waste next week l House News http://bit.ly/WIB6Uk

The best and worst states for online transparency l Government Computer http://ow.ly/hlVO7

The best and worst states for online transparency l Government Computer http://ow.ly/hlVO7

Let’s hope the Harbaughs’ sibling rivalry isn’t as dramatic as these rival white dwarf stars l Smithsonian http://s.si.edu/hl1Mn

African-American women are more likely to suffer from heart disease than others l Women’s Health http://go.usa.gov/4UxF

Federal Reserve, Central Banks, & Financial Departments

What must be done to manage the city’s physical form? l World Bank http://ow.ly/hlWVB

Here’s the link to the poverty study l Cleveland Fed http://ow.ly/hlWWW

Can investing in downtowns & historic city cores help reduce poverty & promote economic growth? l World Bank http://ow.ly/hlXaL

Pending home sales fell 4.3% from Nov to Dec. l Atlanta Fed http://goo.gl/9zvPu

How much U.S. currency is in circulation? l Federal Reserve http://ow.ly/hlXi6

High school teacher of economics or parent of a HS student? #FedChallenge by 03/31 l Chicago Fed http://ow.ly/hlXmQ

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important government and central bank articles of the week.

 

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The HBCU Money™ Weekly Market Watch

Posted on February 1, 2013 by | Leave a comment

Our Money Matters /\ February 1, 2013

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $4.50 (2.04% UP)

Carver Bank New York (CARV) $4.80 (11.94% UP)

Radio One (ROIA) $1.31 (3.68% DN)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  173.27 (0.04% DN)

Botswana Stock Exchange (BSE)  7 795.73 (0.19% UP)

Ghana Stock Exchange (GSE)  1 281.34 (6.80% UP)*

Nairobi Stock Exchange (NSE)  104.09 (N/A)

Johannesburg Stock Exchange (JSE) 40 601.09 (UNCH)

International Stock Exchanges

New York Stock Exchange (NYSE) 8 965.12 (0.92% UP)

London Stock Exchange (LSE)  3 327.24 (1.21% UP)

Tokyo Stock Exchange (TOPIX)  942.65 (0.26% UP)

Commodities

Gold 1 670.60 (0.52% UP)

Oil 97.77 (0.29% UP)

*Ghana Stock Exchange shows current year to date movement. All others daily.

All quotes reported as of 5:00 PM Eastern Time Zone

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