The keyword for 2013’s HBCU endowments – rebound. In the past twelve months, the top ten HBCU endowments recouped the $100 million they lost in 2012. Meanwhile, the top ten HWCU endowments increased by $12.5 billion. The institutional wealth gap between HWCU/HBCU endowments increased from 102:1 to 103:1 times between top ten endowments over the past twelve months.
There was some real shakeup among the HBCU top ten this year with Morehouse School of Medicine and Bethune-Cookman University falling out of the top ten making room for newcomers. It is unclear whether the two institutions simply failed to report on time or had significant enough declines to drop out of the top ten. The top five remains unchanged and they remain the only in the $100 million endowment club for HBCUs. Tennessee State University makes the biggest leap in the top ten going from the nine spot up to six. Winston-Salem State University finds their way back on the list at number ten after being booted last year by Virginia State University. The new kid on the block is North Carolina A&T State University at number nine, and led all reporting HBCUs with the highest return on investment with an amazing 17.5 percent. Spelman’s endowment rebounded, but concerns are present as they returned only 5.8 percent on their endowment which is the lowest among the top ten. This comes after having the third worst return last year among the top ten and raises real questions on whether they can challenge Howard for the first to the $1 billion mark. The MEAC continues its domination with four institutions among the top ten for the second year in a row, while the CIAA holds two spots and Fayetteville State University sits just outside of the top ten. Despite a minute endowment of $2.2 million, Texas College for the second year in a row returns a stellar return at 16.7 percent.
As always if you do not see your HBCU in the top 10 – DONATE!
Endowment in millions (Return On Investment)
$513 667 (11.5%)
$327 171 (5.8%)
$254 103 (9.3%)
$124 965 (11.1%)
$115 281 (7.0%)
$42 970 (13.4%)
$42 179 (11.1%)
$38 192 (15.3%)
$32, 959 (17.5%)
$29 543 (13.8%)
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.
NACUBO Average Endowment – $537 213 (10.0%)
NACUBO Median Endowment – $101 192 (12.3%)
Top 10 HWCU Endowments combined – $154.7 billion
Top 10 HBCU Endowments combined – $1.5 billion
Source: National Association of College & University Business Officers