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The HBCUpreneur Corner – Florida A&M University’s Dimma Wright & Dimma Wright Real Estate Consulting

Name: Dimma Wright

Alma Mater: Florida A&M University

How long have you been in real estate investment? 6 years

What has been the most exciting and/or fearful moment during your HBCUpreneur career? The moment I decided to leave my full time job as a senior physical therapist at a top tier hospital and become a full time entrepreneur and manifest my destiny!

What made you want to start real estate investing? I wanted to create wealth and have the freedom with my time to spend it how I wanted. 

How do you handle complex problems? I simplify them to the basics on what is necessary to complete first then move to the least and unimpactful item last.

Who was the most influential person/people for you during your time in college? My professors, they were always encouraging and talked real life aspects to prepare me for the real world outside of school.

What is something you wish you had known prior to your first real estate investment? That I should have started investing in real estate ever since I was working and living at home with my mother after I graduated.  I didn’t have to have all the pieces in place before I started.

Would you advise someone to buy a primary home or investment property first? I would advise them to do both.  A primary home can be utilized to be your investment property, can house hack with a duplex or a single family home large enough to rent out rooms if you desired.  Or purchase a primary home that allows you to save for down payment to another investment property or home to move into and rent your current one out.

What is one current trend in real estate investing, and how can investors take advantage of it?  The updated fannie mae conventional loan to buy a multi-family (2-4 door unit), allows 5% down payment. Before it required 20-25% down payment, that is why all opted for FHA 3.5% down payment, now you can scale to more properties as a primary residence without having to refinance out of FHA loan every year or so.

Artificial Intelligence is everywhere and its presence in real estate is certainly likely to grow like everywhere else. How do you see it impacting real estate investing in particular? I would want it to underwrite a deal for me quick and fast or I upload a video of the house and it tells me all the repairs needed and estimated costs, that would be cool.

Do you see any potential headwinds that maybe facing real estate investors in the near future? No, true investors learn to adapt in any environment and any obstacle.  As long as your mind is right, you will persevere.

Is there anything you read or follow in order to stay an informed real estate investor?  I listen to podcasts all on the real estate subject, I take webinars and active at different networking events.

How do you believe HBCUs can help spur more aptitude for understanding real estate investment while their students are in school either as undergraduate or graduate students? I would say to offer more financial literacy courses, help students to understand you can make money but if you are not smart with those decisions Uncle Sam and bad habits will leave you with nothing.  Also, to understand all the different taxes that come out of paycheck, it helps to offset extra money with an llc.

How do you deal with rejection? I smile and say thank you for your time.

When you have down time how do you like to spend it? I spend it being harassed by my kids and/or watching movies.

What was your most memorable HBCU memory? I met my husband at a local nightclub in Tallahassee. He was also at FAMU grad school, different major than me.

Lastly, is there any advice you have for budding HBCUpreneurs in real estate? Discipline leads to habits, habits lead to consistency, consistency leads to growth.  Changing your mindset will open more doors for you!

Which HBCU/PBI State Is Winning At Renewable Energy Production?

It is no secret that the world is moving towards a stronger reliance on renewable energy*, but there is a swath of the country that is moving extremely slow to embrace it. That swath is dominated by HBCU/PBI states who still dominantly prefer a traditional energy mix. The move towards renewable energy though is inevitable. This is both for environmental and economic reasons. To the latter, there is a massive investment and entrepreneurship opportunity available to HBCUpreneurs who want to help grow and cultivate the space in their respective states. American Association of Blacks In Energy (AABE) President Ralph Cleveland shared the following thoughts, “We will not meet the demands of energy transformation and climate change without Black institutions. This partnership reinforces the critical role HBCUs play in shaping the face of energy talent, development, and design. Not only do we need to create pathways to the C-Suite but we also need to activate our rich networks for a more inclusive energy ecosystem.” While we agree HBCUs need to create pathways to the C-Suite, we also believe the easiest and most economically empowering path there is to have HBCUs and HBCUpreneurs be the vanguard in creating renewable energy startups as highlighted in The Green Program’s ”19 Black Leaders on the Forefront of Clean Energy’ article. The power in energy like everything else is ultimately in the ownership.

HBCU Money took data from Yale Climate Connections and drilled down to the states that have HBCUs and PBIs located in them to see how the states where African America and its institutions are and will be impacted by the current energy mix in their state and also to highlight the opportunities that lay ahead as well. “Important note: The map shows electricity production within each state’s borders. Many states and utility companies exchange electricity with other states. So this data may not reflect the energy that is actually consumed — as opposed to generated — within each state.”

Why is nuclear not considered a renewable? National Grid states, “Nuclear fuels, such as the element uranium, are not considered renewable as they are a finite material mined from the ground and can only be found in certain locations.”

HIGHLIGHTS:

  • The average HBCU/PBI state has renewable energy of 12% average and 9% median, respectively.
  • Wind supplies the highest average renewable energy at 5% overall and hydropower supplies the highest median energy at 3% overall.
  • Oklahoma, the overall leader, is also the leader in wind energy with 41% of its energy coming from wind.
  • New York is the hydropower leader among HBCU/PBI states with 23% of its energy mix coming from water.
  • California is the solar power leader among HBCU/PBI states with 19% of its energy mix coming from the sun.
  • Only 6 of the 23 states have a double digit renewable energy source in their energy mix. Oklahoma, California, New York, Texas, Tennessee, Illinois.

OKLAHOMA

Renewable Electricity Generation: 44%

Renewable Rank Among All 50 States: 10th

Coal: 14%

Fossil Gas: 42%

Nuclear: 0%

Hydro: 3%

Wind: 41%

Solar: 0%

CALIFORNIA

Renewable Electricity Generation: 36%

Renewable Rank Among All 50 States: 13th

Coal: 0%

Fossil Gas: 47%

Nuclear: 9%

Hydro: 8%

Wind: 8%

Solar: 19%

NEW YORK

Renewable Electricity Generation: 28%

Renewable Rank Among All 50 States 16TH

Coal: 0%

Fossil Gas: 45%

Nuclear: 25%

Hydro: 23%

Wind: 3%

Solar: 1%

TEXAS

Renewable Electricity Generation: 26%

Renewable Rank Among All 50 States: 18th

Coal: 20%

Fossil Gas: 44%

Nuclear: 9%

Hydro: 0%

Wind: 23%

Solar: 3%

MASSACHUSETTS

Renewable Electricity Generation: 15%

Renewable Rank Among All 50 States: 22ND

Coal: 0%

Fossil Gas: 76%

Nuclear: 0%

Hydro: 6%

Wind: 1%

Solar: 8%

TENNESSEE

Renewable Electricity Generation: 15%

Renewable Rank Among All 50 States: 23RD

Coal: 23%

Fossil Gas: 16%

Nuclear: 46%

Hydro: 14%

Wind: 0%

Solar: 0%

NORTH CAROLINA

Renewable Electricity Generation: 13%

Renewable Rank Among All 50 States: 26th

Coal: 16%

Fossil Gas: 37%

Nuclear: 34%

Hydro: 5%

Wind: 0%

Solar: 8%

ILLINOIS

Renewable Electricity Generation: 11%

Renewable Rank Among All 50 States: 28TH

Coal: 23%

Fossil Gas: 11%

Nuclear: 54%

Hydro: 0%

Wind: 11%

Solar: 0%

INDIANA

Renewable Electricity Generation: 10%

Renewable Rank Among All 50 States: 30TH

Coal: 61%

Fossil Gas: 29%

Nuclear: 0%

Hydro: 0%

Wind: 9%

Solar: 1%

ALABAMA

Renewable Electricity Generation: 9%

Renewable Rank Among All 50 States: 32ND   

Coal: 20%

Fossil Gas: 38%

Nuclear: 33%

Hydro: 8%

Wind: 0%

Solar: 0%

MARYLAND

Renewable Electricity Generation: 9%

Renewable Rank Among All 50 States: 33RD  

Coal: 14%

Fossil Gas: 36%

Nuclear: 40%

Hydro: 6%

Wind: 1%

Solar: 2%

MICHIGAN

Renewable Electricity Generation: 8%

Renewable Rank Among All 50 States: 34TH  

Coal: 33%

Fossil Gas: 26%

Nuclear: 30%

Hydro: 1%

Wind: 7%

Solar: 0%

ARKANSAS

Renewable Electricity Generation: 7%

Renewable Rank Among All 50 States: 35TH  

Coal: 36%

Fossil Gas: 34%

Nuclear: 23%

Hydro: 7%

Wind: 0%

Solar: 1%

GEORGIA

Renewable Electricity Generation: 7%

Renewable Rank Among All 50 States: 36TH  

Coal: 16%

Fossil Gas: 47%

Nuclear: 29%

Hydro: 3%

Wind: 0%

Solar: 0%

KENTUCKY

Renewable Electricity Generation: 7%

Renewable Rank Among All 50 States: 37th  

Coal: 72%

Fossil Gas: 21%

Nuclear: 0%

Hydro: 7%

Wind: 0%

Solar: 0%

VIRGINIA

Renewable Electricity Generation: 5%

Renewable Rank Among All 50 States: 39TH  

Coal: 3%

Fossil Gas: 58%

Nuclear: 31%

Hydro: 1%

Wind: 0%

Solar: 4%

SOUTH CAROLINA

Renewable Electricity Generation: 5%

Renewable Rank Among All 50 States: 40th  

Coal: 16%

Fossil Gas: 24%

Nuclear: 56%

Hydro: 3%

Wind: 0%

Solar: 2%

FLORIDA

Renewable Electricity Generation: 4%

Renewable Rank Among All 50 States: 43RD   

Coal: 8%

Fossil Gas: 75%

Nuclear: 12%

Hydro: 0%

Wind: 0%

Solar: 4%

LOUISIANA

Renewable Electricity Generation: 2%

Renewable Rank Among All 50 States: 47TH   

Coal: 11%

Fossil Gas: 57%

Nuclear: 24%

Hydro: 2%

Wind: 0%

Solar: 0%

DELAWARE

Renewable Electricity Generation: 2%

Renewable Rank Among All 50 States: 49TH   

Coal: 8%

Fossil Gas: 88%

Nuclear: 0%

Hydro: 0%

Wind: 0%

Solar: 2%

MISSISSIPPI

Renewable Electricity Generation: 1%

Renewable Rank Among All 50 States: 50TH   

Coal: 8%

Fossil Gas: 73%

Nuclear: 18%

Hydro: 0%

Wind: 0%

Solar: 1%

African America’s February 2024 Jobs Report – 5.6%

OVERALL UNEMPLOYMENT: 3.9%

AFRICAN AMERICA: 5.6%

LATINO AMERICA: 5.0%

EUROPEAN AMERICA: 3.4%

ASIAN AMERICA: 3.4%

Analysis: Latino and European Americans both saw no change in their unemployment rate from January. Asian Americans saw an increase of 50 basis points change in their unemployment rate. African Americans had an increase in their unemployment rate of 30 basis points for January.

AFRICAN AMERICAN UNEMPLOYMENT RATE BY GENDER & AGE

AFRICAN AMERICAN MEN: 6.1%

AFRICAN AMERICAN WOMEN: 4.4% 

AFRICAN AMERICAN TEENAGERS: 15.4%

AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE

AFRICAN AMERICAN MEN: 69.8%

AFRICAN AMERICAN WOMEN: 63.4%

AFRICAN AMERICAN TEENAGERS: 30.7%

Analysis: African American Men saw an increase in their unemployment rates by 80 basis points while African American Women decreased by 40 basis points after three straight months of no change. African American Men and Women increased their participation rate in January by 40 basis points and 50 basis points, respectively. African American Teenagers unemployment rate jumps by 380 basis points as their volatility continues. African American Teenagers also had their participation rate decrease by 90 basis points back down to their lowest participation rate over the past five months.

African American Men-Women Job Gap: African American Women currently have 859,000 more jobs than African American Men in February. This is an increase from 728,000 in January.

CONCLUSION: The overall economy added 275,000 jobs in February while African America gained 63,000 jobs. From Bureau of Labor Statistics, “Among those not in the labor force who wanted a job, the number of people marginally attached to the labor force changed little at 1.6 million in February. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the 4 weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, was little changed at 425,000 in February.”

Would Huey & Riley Freeman Attend An HBCU?

“There is a place in God’s sun for the youth “farthest down” who has the vision, the determination, and the courage to reach it.” – Mary McLeod Bethune

It is no secret that desegregation crippled just about every African American owned institution from neighborhoods to businesses to HBCUs – and many would argue the foundational institutions of Black marriage and African American families themselves. African American institutional ownership was faced with having to compete for human capital of the very people whose interest they were built to serve and the institutional ownership that all other non-European American groups envy. In turn, our institutions experienced a mass exodus as African Americans believed that the grass was truly greener and ice colder on the Eurocentric side. Fast forward to today, many African Americans believe they live in a pseudo-meritocracy, a dystopian like post-racial world where even having African American institutions of our own is somehow un-American and participating in our own institutional spaces is a sign of being the “not quite good enough negro” as many of us attempt to impress the European American gaze. This despite other demographics firmly having their own such as Notre Dame for the European Catholics, Brandeis being a secular European Jewish institution, and of course Harvard the flagship WASP institution, so on and so on. Never mind that the majority of the HWCU/PWIs that tout “diversity” often have less than 5 percent African Americans on their campus – and the majority are often there only to play sports.

Case in point, the University of Texas who is one of the most profitable athletic program in the country has a less than 5 percent African American population on its campus. The numbers are even starker when it comes to African American males who make up less than 2 percent of overall campus population, but comprise around 70 percent of the football and basketball teams. HWCU/PWIs have shown one thing to be true, and that is they want the best and brightest of our young women and the fastest and strongest of our young men. HBCUs have been unable to compete due to misperception of inclusion and the reality of the resource/wealth gap between our communities that desegregation and the GI Bill largely caused. Many HBCUs go decades before they can raise enough funding for new facilities or scholarships. Harvard’s endowment in one year can lose more money than the amount all 100 plus HBCUs have combined and still be one of the largest higher education endowments in the world.

In an environment where higher education is getting more and more expensive, African American students who come from the group with the lowest median net worth and income in the country often make college choices based on financial needs more than most. The result, continued exodus and plummeting of African Americans choosing HBCUs due to the lack of scholarship and aid available and the ever present belief that white is right and better.. Currently, less than 10 percent of African American going to college are choosing HBCUs over HWCU/PWIs. A detriment to alumni sizes, social networks, donations, and most dire – HBCU endowments. Just increasing the 10 percent to 25 percent could stave off many of the financial woes facing HBCUs and start to bring circulation of intellectual and financial capital into African American institutions. So how can HBCUs recruit in “Woodcrest”? How do you recruit African Americans who have become immersed in non-Black communities to HBCUs? How do you recruit African Americans who are in African American communities that are impoverished and are only looking to get out? How do you recruit middle class and affluent African American families who have the financial resources African American institutions so desperately need? How do you get African Americans to care more about African American institutionalism than we do African American individualism?

Two of America’s most beloved animated characters of the past 20 years are Huey and Riley Freeman voiced by the regal and benevolent Regina King. The Boondocks first premiered in comic form in 1997 and by 2005 would find their way to television and into our hearts. Huey, the tormented revolutionary and his younger brother Riley, the wanna be thug/hustler and athlete who shows glimpses of artistic genius. Their grandfather, voiced by the late great John Witherspoon, has moved them to a predominantly European American suburb away from the Southside of Chicago’s predominantly African American community at the most formative time in their life. Grandpa Freeman is also part of the Civil Rights generation and is a friend of Dr. Martin Luther King, Jr.’s as it turned out in an episode called ‘The Return of the King’. A controversial episode, but poignant of what happens when children, in this case Riley, are removed from cultural immersion of our own community. Riley has no idea who Dr. Martin Luther King Jr. is and often refers to him as “Morgan Freeman King” in the episode. The irony should not be lost on the Morgan Freeman dig who himself believes Black History Month and being identified as African American is an insult. In another episode, this one more focused on Huey, entitled A Huey Freeman Christmas, Huey convinced his European American teacher to let him write and direct the Christmas play. Naturally, Huey being who he is makes Jesus Black and makes a very Afrocentric production that was ultimately seen by no one as parents of Huey’s European American classmates boycotted the play since their kids were not in it, appalled by its Afrocentricity, and ultimately had the teacher fired for being “irresponsible” highlighting how European Americans will put down one of their own to maintain institutional power. The school was named the J. Edgar Hoover Elementary after all, named for the notorious FBI who infiltrated, spied upon, and sought the destruction of everyone from Dr. Martin Luther King, Jr., Malcolm X, Black Panthers, and every other African American individual and institution he even remotely viewed as a threat to the European American institutional power structure.

Riley ignorant of his cultural identity, Huey militantly attempting to push his Afrocentricity into an Eurocentric institutional space, and Grandad feeling as if he has “made it” because he is able to eat cheese with The Man. This is the family you have to convince that an African American institution and space is the best place to be. There also is the influence of the community on Huey and Riley. Tom DuBois who is married to a European American woman, Uncle Ruckus who rails against all things Black – while being the darkest character on the show, Tom’s daughter Jazmine whom you are never quite sure how she identifies and that probably is the point, and countless others who throughout the show push against anything and everything that would empower African American institutionalism at all turns. In fact, there is no exposure or presence of any Black institutions on the show. The Boondocks one could argue was actually the forerunner to Blackish, but that is another article for another time. With so much pushing against Huey or Riley choosing an HBCU and their grandfather allowing them to attend an HBCU, how do we overcome such an obstacle? Is it possible? Is it even worth the energy?

The answer of course is – it is complicated. How do you win a war most of your population does not know it is in? Another part is turning every other cheek to be included and a proverbial peace that means its erasure? Those that do know they are in a war are fighting with antiquated strategies, equipment, and/or resources? HBCUs have limited resources and manpower to dedicate to recruiting. HBCUs one advantage is being an African American space, an African American institution dedicated to African American empowerment, or at least they were. Many HBCUs see making recruitment of African Americans a secondary objective in favor of more ethnic diversity – ignoring African American and Diaspora diversity as they attempt to parrot their PWI counterparts, declines in African American faculty and research geared towards African American interests becoming ever more pervasive – institutional gentrification by our own hands. In other words, many HBCUs are trying to become a watered down version of a PWI. This makes their case for recruiting even harder because of the aforementioned issues of limited resources and manpower. If a college student is going to choose a PWI versus an HBCU posing as a PWI knockoff, then usually they will go with the one who is the real thing so to speak. For those HBCUs trying to hold the line it is rough. They have to convince an African American population that does not want to live in or build African American communities, bank with African American banks, and see their ancestry as starting at slavery more than they see it internationalized with the Diaspora as Malcolm X and so many other Pan-Africanist have desperately tried to connect to little avail. That being educated by African Americans in an African American space as something valuable, worthwhile, and imperative to the African American community’s empowerment. A small task it is not.

How do we even get to students like Huey and Riley? Their geography is world’s away from any African American institution, their socialization will largely save for trips back to Chicago sparingly be within the confines of European American institutions and spaces, education will be firmly European American with a likelihood of an European American perspective on diversity being from European American majority ideology, and certainly it would be remiss to say that neither of their possible love interest are African American girls. Jazmine, the daughter of Tom and Sara DuBois, who is biracial and fits the cultural aptitude that often comes with those who have African American fathers and European American mothers where the mother drives the cultural nourishment and almost certainly are reared with an anti-Afrocentric value system. Riley’s probable love interest that is Cindy McPhearson, an European American girl, who shares a lot of the same interest and often similar toxic behaviors as Riley. One could argue they make even more sense should it play out than Huey and Jazmine from a qualitative level. All which was described, virtually none of it sits within an African American space or possibility. Yet, these are exactly the African American students you could argue we are in large part trying to recruit to HBCUs. This is the group that you need more than any other if you want to increase the African American rate choosing HBCUs to increase from 10 percent to 25 percent.

If African Americans are going to continue to not be proactive in the development of African American communities and empowerment of African American marriage and families then this entire conversation maybe for naught within a few generations as we will have self-gentrified ourselves out of existence. The question of how we get our talents and resources to prioritize the building of new African American institutions, supporting of existing African American institutions, and the empowering of all of our African American institutions is the central question for our survivability and furthermore our success as a people.

HBCU Money’s 2023 Top 10 HBCU Endowments

Note: These data are based on colleges, universities, affiliated foundations, and related nonprofit organizations that volunteered to participate in NACUBO’s endowment study series.” – NACUBO

With a looming enrollment crisis for all America’s colleges and universities, we are at a time where endowments are not only going to matter more they are going to matter the most. The building of endowments, cutting of some overweight athletic expenses that allow you to invest more, aggressive fundraising efforts, joint investing with other HBCUs, everything should be on the table. This is an arms race for survival. We have been at alert level red for awhile but apparently the sound of the siren has been broken. Now it is fixed and it is blaring. HBCU endowments are a key and integral component to African American wealth building both individually and institutionally. Their importance to African America’s economic survivability, sustainability, and empowerment cannot be overstated enough. That HBCU endowments continue to be that is a matter of conversation about who at HBCUs should be benefitting and prioritized most by our endowments.

HBCU endowment analysis from 2023 will not reflect that Spelman College kicked off 2024 with HBCUs largest ever donation and the first ever nine figure donation with its $100 million donation from Ronda Stryker and William Johnston. We will see how much of the $100 million makes it into Spelman’s actual endowment coffers this time next year, but even without it Spelman leads all HBCUs in NACUBO’s new category of endowment value per full-time equivalent (FTE) student with $197,713 per Spelmanite versus Florida A&M University’s worrisome $6,044 endowment value per full-time equivalent student. This arguably is a more accurate of how healthy a college or university’s endowment is performing to some degree which we covered in ‘Without Hyperactive Alumni, HBCUs Will Bear The Brunt Of The Building Tsunami Of College Closures And The End Of Their Blackness’. Only Spelman College and Meharry Medical College have endowment value per FTE above $100,000. The national average is $174,499 among all college and universities and median is $47,287. HBCUs reporting have an average of $63,861 and median of $19,256.

On the good news from 2023 is Morgan State University and Virginia State University breaking into the $100 million endowment club as only the ninth and tenth HBCUs to do so. It is assumed that Tuskegee University (not reported) based on their FY 2018 Fact Book also has an endowment above $100 million. This means that roughly 10 percent of the remaining HBCUs have endowments above $100 million. Unfortunately, the gap between that group and those below is staggering with there being questions of a larger percentage of HBCUs potentially having no endowment as a possibility. Lastly, unless Spelman comes through with another jaw-dropping donation (it is certainly possible), then at some point in 2024 Howard University’s endowment will cross the $1 billion mark making it the first HBCU to do so.

The PWI-HBCU NACUBO Top 10 Endowment Gap for 2023 stands at $128.7 to $1, which is an increase from 2022’s $127.5 to $1.*

HIGHLIGHTS:

  • Top 10 HBCU Endowment Total – $2.2 billion
  • Top 10 PWI Endowment Total – $321.6 billion
  • Number of PWIs Above $2 billion – 74
  • Number of PWIs Above $1 billion – 139
  • Number of HBCUs Above $1 billion – 0
  • Number of HBCUs Above $100 million – 9
  • 688 colleges, universities, and education-related foundations completed NACUBO’s FY23 survey and those institutions hold $839 billion of endowment assets with an average endowment of $1.2 billion and median endowment of $209.1 million.
  • HBCUs comprised 1.4 percent of NACUBO’s reporting institutions and 0.3 percent of the reporting endowment assets.
  • PWI endowments (30) with endowments over $5 billion hold 58 percent of the $839 billion in endowment assets.

All values are in millions ($000)**

1. Howard University – $926,633 (7.4%)

Endowment Value Per Full-Time Student – $81,341

2. Spelman College – $474,907 (3.4%)

Endowment Value Per Full-Time Student – $197,713

3.  Meharry Medical College – $179,287 (6.0%)

Endowment Value Per Full-Time Student – $165,394

4. North Carolina A&T State University  – $164,720 (0.1%)

Endowment Value Per Full-Time Student – N/A

5. Florida A&M University – $113,378 (1.7%)

Endowment Value Per Full-Time Student – $6,044

6. Morgan State University – $101,037 (12.9%)

Endowment Value Per Full-Time Student – N/A

7. Virginia State University – $100,935 (45.1%)

Endowment Value Per Full-Time Student – $22,903

8. Norfolk State University – $83,525 (17.4%)

Endowment Value Per Full-Time Student – $16,149

9. Fayetteville State University – $31,280 (-2.2%)

Endowment Value Per Full-Time Student – $5,479

10. Kentucky State University – $20,238 (6.3%)

Endowment Value Per Full-Time Student – $15,861

*Due to Hampton University and Morehouse College not participating this year significantly altered the Top 10 HBCUs endowment combined total. Therefore, HBCU Money took the editorial liberty of calculating the PWI-HBCU endowment gap based on 2022’s HBCU endowment total of $2.5 billion.

**The change in market value does NOT represent the rate of return for the institution’s investments. Rather, the change in the market value of an endowment from FY21 to FY22 reflects the net impact of:
1) withdrawals to fund institutional operations and capital expenses;
2) the payment of endowment management and investment fees;
3) additions from donor gifts and other contributions; and
4) investment gains or losses.

SOURCE: NACUBO

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.