Monthly Archives: June 2013

The HBCU Endowment Feature – Texas College

Official Seal - Texas College

School Name: Texas College

Median Cost of Attendance: $17 208

Undergraduate Population: 878

Endowment Needed: $302 172 480

Analysis: Texas College needs approximately $300 million for all of its students to attend debt free. Located 100 miles from Dallas, TX and 90 miles from Shreveport, LA puts Texas College in a sweet spot geographically. This could allow the school to grow triple in size in a very short period if its infrastructure could keep up with such exponential growth. Part of this growth could easily come from establishing a relationship for transfers from Southern University-Shreveport which is a two-year HBCU. Texas College is actually closer to SU-S than the flagship Southern University-Baton Rouge and could easily sway students who want to be away from home but not more than a few hours. With less than 1000 students the school needs to hit a growth spurt and fast in order to graduate enough alumni on an annual basis and increase the donor pool available to it. Of course at its current size there is the opportunity to build very intimate relationships with these graduates and establish donor relationship much earlier and on a personal basis. Texas College in 2012 led all HBCUs reported in NACUBO in terms of return on investment at 12.8 percent in a year when 70 percent of the top ten HBCU endowments had negative returns. This type of continued performance could bode well for them if they can get the raw dollars to boost the size of the money it is managing. The school has the talent to manage the money but its demographics need to grow for it become a relevant endowment in this era of expand or die.

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.

HBCU Money™ Business Book Feature – Getting to Yes: Negotiating Agreement Without Giving In

getting-to-yes

Since its original publication nearly thirty years ago, Getting to Yes has helped millions of people learn a better way to negotiate. One of the primary business texts of the modern era, it is based on the work of the Harvard Negotiation Project, a group that deals with all levels of negotiation and conflict resolution.

Getting to Yes offers a proven, step-by-step strategy for coming to mutually acceptable agreements in every sort of conflict. Thoroughly updated and revised, it offers readers a straight-forward, universally applicable method for negotiating personal and professional disputes without getting angry-or getting taken.

HBCU Money™ Dozen Links 6/3 – 6/7

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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

Study shows possible expanded use for #cancer drug l Argonne http://tinyurl.com/mowogll

Teachers! – Register before July 1 for this free workshop on board the S/V Denis Sullivan l IL-IN Grant http://fb.me/6kziJDy0G

Best time to feed #horses before competition l KY Equine Research http://ow.ly/ly8Qx

Report on Grow Africa Investment Forum 2013 l Grow Africa http://ow.ly/lNYL3

Texas Sea Grant researchers help beach visitors l TX Sea Grant http://fb.me/2Fis1iohQ

Crow Enviro Health Committee to research what is contaminating local waters & how to educate community l US EPA http://1.usa.gov/16MQaHP

Federal Reserve, Central Banks, & Financial Departments

Economist finds that #smoking bans do not appear to be correlated with changes in smokers’ behavior l St. Louis Fed http://bit.ly/LJwm9J

Florida governor signs bill to speed up state’s foreclosure process l Housing Wire http://hwi.re/3TsJYZ

When small firms look into a crystal ball, do they see faster employment growth? l Atlanta Fed http://goo.gl/QXTKQ

Teachers: Discover what the Common Core will mean for your classroom (workshop) June 18-19 l KC Fed http://ow.ly/lB5Z9

Real net worth per household has rebounded 63% since hitting bottom in early 2009 l St. Louis Fed http://bit.ly/1bd81o2

89 million recorded internet users in Sub-Saharan #Africa, half of them were in Nigeria l World Bank http://ow.ly/lO45f

Thank 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 /\ June 7, 2013

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $5.40 (0.00% UNCH)

Radio One (ROIA) $2.32 (0.43% DN)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  214.93 (0.71% DN)

Botswana Stock Exchange (BSE)  8 717.48 (0.07% DN)

Ghana Stock Exchange (GSE)  1 883.88 (57.03% UP)*

Nairobi Stock Exchange (NSE)  126.19 (N/A)

Johannesburg Stock Exchange (JSE) 40 813.33 (1.17% UP)

International Stock Exchanges

New York Stock Exchange (NYSE) 9 355.41 (1.02% UP)

London Stock Exchange (LSE)  3 384.56 (1.18% UP)

Tokyo Stock Exchange (TOPIX)  1 056.95 (1.29% DN)

Commodities

Gold 1 381.10 (2.44% DN)

Oil 96.18 (1.50% UP)

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

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

The HBCU Endowment Feature – Delaware State University

210px-Delaware_State_University_seal

School Name: Delaware State University

Median Cost of Attendance: $16 460

Undergraduate Population: 3 744

Endowment Needed: $1 232 524 800

Analysis: Delaware State University needs approximately a $1.2 billion endowment for all of its undergraduates to attend debt free. The school is located in Dover, DE and is the only HBCU in the state. Although the states demographics lend to over 20 percent of the population being African American, it should be noted that the state itself has less than 1 million citizens. This means DSU must rely heavily on recruiting from outside of its state borders to build its population. Delaware is surrounded by Maryland, Pennsylvania, and New Jersey. The latter presenting a prime opportunity since it does not actually have an HBCU located within its borders. Delaware State University because of this could become more integrated with that reality and offer “in-state” tuition to those citizens in New Jersey. Especially, given the presence of cities like Newark, New Jersey which have a strong African American population and have the potential for sound social and economic ties to Delaware State University. The state of Delaware itself is the legal “home” to more than 50 percent of U.S. public companies and two-thirds of Fortune 500 companies. Being a prominent state of where companies set up their legal home suggest a revenue opportunity is available to Delaware State University and its alumni to create programs and services to existing companies and forming companies. With an endowment just over $20 million the university is sitting in an economic hub of sorts and access to the New Jersey population could easily make a run into the top ten HBCU endowments. It does face increasing dangers of trying to become too ethnically diverse and could lose its HBCU appeal. This red flag is primarily because of the unknown data as of yet as to just how committed non-African American alumni are as donors to their HBCUs. There is much to like about the direction of the endowment situation at Delaware State University but there are some concerns for a school in a state with limited in-state population unless it becomes more creative in recruitment.

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.