Yearly Archives: 2013

The HBCU Endowment Feature – Spelman College

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School Name: Spelman College

Median Cost of Attendance: $39 629

Undergraduate Population: 2 170

Endowment Needed: $1 719 898 560

Analysis: Spelman College needs approximately $1.7 billion for all of its undergraduates to attend debt free annually. Spelman College is the number 2 HBCU endowment behind Howard University and closing fast. Its current endowment is actually almost 18 percent of its needed endowment which leads the top endowments. Thanks to its Rockefeller heritage the school continues to be well connected to money outside of the African American community which allows for a faster pace of fundraising. This has its pros and cons of influence within any institution. Demographics are also in Spelman’s favor as African American women have a lower unemployment rate. African American women and men have the smallest gap in income disparity of any group. This is both good and bad since African America as a whole only makes 65 percent of what their European American counterparts make. The college’s recent disbanding of its athletic program should be an interesting dynamic to watch. With a healthy overall student body in the long term it could mean alumni who live longer which leads to larger financial estates, smaller medical bills, and more discretionary finances for donating back to the school. It could truly be the decision that propels Spelman to the number one spot in the coming decades. Yet, Spelman is not without its own headwinds. There are some possible questionable investments within the endowment by way of its investment committee chair that could derail the college if a clear conflict of interest policy is not show to be governing the committee’s decisions. Aside from that potential problem ( it should not be understated however how big of a problem it could become) Spelman is poised to make a serious run at becoming the first billion dollar HBCU endowment and nobody should bet against them (well except Howard).

HBCU Money™ Business Book Feature – Television’s Imageable Influences: The Self-Perception of Young African-Americans

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Camille O. Cosby presents a startling examination of how young African-Americans are dramatically impacted by the pervasive negative images of their culture that are regularly portrayed on television. Dr. Cosby shows how American media establishments have engineered a climate of ignorance and disenfranchisement by fostering misinformation and indifference. She maintains that a national viewers’ boycott of programming containing such negative images is the first step towards making the television industry face up to its responsibility as the most powerful communications tool in our nation.
Contents: Statement of the Problem; Influence of Perception on Human Behavior; The Impact of Television Images on How Individuals View Themselves; What Specific Aspects of Self Are Addressed by Particular Television Imageries of African-Americans? What Possible Influences Do Particular Television Imageries Have on Self-Perceptions of Selected Young Adult African-Americans? What Specific Aspects of Self Are Addressed by Particular Television Imageries of African-Americans? What Possible Influence Do Particular Television Imageries Have on Self-Perceptions of Selected Young Adult African-Americans? Nielson Media Research; Personal History Form and Profiles of Interviewees.

HBCU Money™ Dozen Links 2/18 – 2/22

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

Better buildings partners represent more than 2 billion sq ft of energy efficient building space l Energy http://go.usa.gov/4JVY

US, NATO, & partners still considering size of post-2014 force in Afghanistan l Department of Defense http://ow.ly/hYskY

Heart disease is the # 1 killer of women vets. Are you at risk? l Women’s Health http://womenshealth.va.gov

Doing Business in Africa Forum Presents Opportunities for American Businesses in Sub-Saharan Region l US Commerce http://1.usa.gov/URSJSn

Celebrating African American history month with a special live Q&A on bridging the diversity gap in STEM l Energy http://go.usa.gov/4hmh

6 free resources you can turn to for advice about starting & running a business l SBA http://ow.ly/hYsXa

Federal Reserve, Central Banks, & Financial Departments

Bullard: We continue to have a “too big to fail” problem l St. Louis Fed http://bit.ly/YMmq41

Bullard: Forecast for U.S. economic growth in 2013 is 3% l St. Louis Fed http://bit.ly/XHwPju

What might economic growth in Tennessee look like in 2013? l Atlanta Fed http://goo.gl/VGqhj

In ’12, unemployment for recent veterans was 13.9%, 9.2% for nonveterans & 7.9% for older veterans l Chicago Fed http://ow.ly/hYtgL

Featured presentation on money supply! Watch to see how payments are measured l San Francisco Fed http://ow.ly/hYtDa

What motivates financial service providers to serve different markets? l World Bank http://ow.ly/hYtG3

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.

Gaines & Johnson: A Different World Of A Lesson In HBCUpreneurship & Leadership

By William A. Foster, IV

A man must eat a peck of salt with his friend before he knows him. – Miguel de Cervantes

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Recently Lou Meyers, the man who played Vernon Gaines on A Different World, passed away. As such it made me take some time and reflect on his character from the show. Awhile back I wrote that the characters Dwayne Wayne and Ron Johnson missed a golden opportunity to build a technology company together and instead Ron and Mr. Gaines would open what would be the “typical” show of African American ownership – a club. However, upon reflection even I must admit I missed a golden lesson about something even I experienced while I attended multiple HBCUs and something I believe to be very unique to HBCU culture.

Relationships matter. There is something amazing about the relationship at HBCUs with the students and groundskeepers, janitors, secretaries, cafeteria workers, and others who quietly make the college or university run also commonly referred to as staff. They are as integral and as invested often times in our students’ success as anyone. These unsung heroes provide the little things to HBCU students through their matriculation and was embodied by Mr. Gaines’ character on A Different World. Mr. Gaines was constantly providing words of encouragement and priceless wisdom to all that came through The Pit’s doors. He showed by example hard work and leadership to students who worked under his apprenticeship. They learned lessons from him that no classroom or schoolbook could teach. Oft times providing some of those lessons to faculty as well.

In the case of Ron and Mr. Gaines even I missed something vitally important. Mr. Gaines gave much of his life savings to obtain the club with Ron. It was a huge risk for him personally but what an amazing moment. We so often talk about how we lack access to resources especially financial ones and other expertise but it is often because we are not thinking outside of the box. Many times the resources are right under our nose. Ron and Mr. Gaines partnership was a match made in heaven. Ron was the consummate promoter, a risk taker, and full of youthful arrogance while Mr. Gaines was the steady hand of experience and wisdom along with being an operations guru making sure any ship under his care was going to be run efficiently and on time. Working at an HBCU he also could run anything on a tight budget squeezing every ounce of value out of every dollar. Ron came from a family that probably could have allowed him to bankroll it by himself but odds are he would have failed going alone. His weaknesses were Mr. Gaines strengths and vice versa. But it was years of relationship building between Mr. Gaines watching Ron mature from an immature freshman with promise to a driven young man that allowed their partnership to form in the first place. You see the “ivory” walls that exist between students and staff that exist at many colleges just do not exist at HBCUs and nor should they. Many of our students have parents and family who work in these type of jobs so they have a respect for the work that is tirelessly being done. It allows a wholistic development and humility for our students to be taught by everyone on the campus because everyone has something to offer to our students.

What eventually would come of the Gaines & Johnson partnership? That one club turned into a major food & events management and development company eventually going public on the Ghana Stock Exchange. They would continue to open clubs and eventually find their way into opening casinos, hotels, and restaurants using Hillman architecture, business, engineering, and hospitality graduates. The food & events management division would have the culture of The Pit. Run on a tight ship and on time. Its reputation throughout the industry would be unheralded. They would eventually secure contracts with multiple professional sports organizations and would be lead company managing the Super Bowl. Their development company would ultimately land a development deal in Tokyo, Japan for a major hotel and restaurant with the assistance of fellow alum and Senior Vice President Dwayne Wayne at Kenishewa who uses his influence to secure them favor.

This is the beauty you see on HBCU campuses. That our students and staff most often come from communities and families that allow them to relate to each other and see in each other the reminder of today and promise of tomorrow. Dr. Carter G. Woodson said in Miseducation of the Negro, African Americans would come from a family whose mother had been a maid washing clothing, they would go off to colleges and instead of them coming back and starting a chain of cleaners would rather become highbrow and go off to work in some company as still nothing more than fancy labor with a nice title. Missing an opportunity to truly build on the knowledge of the generation before and create ownership for the family and community. Most often because we were taught that only the “educated” have value instead of understanding that value is in the knowledge whatever it maybe and whomever it maybe coming from.

It is the unique relationship that often times HBCU staff see in the students the optimism for their own families. Something tangible which is why more than any other college or university I have visited during graduation, it is at HBCUs I most often see staff there and afterwards in pictures with students or students going to say those last goodbyes to the cafeteria worker who made sure they ate during finals. Or in the case of Mr. Gaines and Ron building on the expertise and knowledge of both even if it came via different sources. You see in that way on HBCU campuses there are opportunities everywhere and with everyone. There are lessons to be gained and leadership to be viewed from everywhere and everyone. There is much to be gained from the Mr. Gaines’ of HBCU campuses and as such their knowledge, value, and leadership must be respected and valued as much as any on our campuses. Lou Meyers you will be missed but the immortality of Mr. Gaines and all that his character embodied will live on.

The HBCU Money™ Weekly Market Watch

Our Money Matters /\ February 22, 2013

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $5.27 (0.00% UNCH)

Radio One (ROIA) $1.45 (5.23% DN)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  184.73 (0.70% UP)

Botswana Stock Exchange (BSE)  7 861.91 (0.02% UP)

Ghana Stock Exchange (GSE)  1 447.69 (20.67% UP)*

Nairobi Stock Exchange (NSE)  105.27 (N/A)

Johannesburg Stock Exchange (JSE) 39 657.82 (UNCH)

International Stock Exchanges

New York Stock Exchange (NYSE) 8 894.63 (0.96% UP)

London Stock Exchange (LSE)  3 336.18 (0.70% UP)

Tokyo Stock Exchange (TOPIX)  963.48 (0.06% UP)

Commodities

Gold 1 580.80 (0.14% UP)

Oil 93.30 (0.50% UP)

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

All quotes reported as of 6:00 PM Eastern Time Zone