Category Archives: Lists

The 2019-2020 SWAC/MEAC Athletic Financial Review

In the fourth HBCU Money report on the SWAC/MEAC’s athletic finances, there has been one trend that is consistent – an acute amount of red on the balance sheet of each respective HBCU as it pertains to their athletic departments and it continues to grow redder and redder. Since HBCU Money first began reporting the SWAC/MEAC Athletic Financial Review, there have been losses of $128.6 million (2014-2015), $147.1 million (2016-2017), $150.7 million (2017-2018), and this year they continue their trend of the athletic black hole with losses over $161 million through athletics with no correction in sight. Not exactly the cash generating juggernauts that HBCU alumni have in mind when it comes to how deeply many believe that athletics can be the financial savior to HBCU financial prosperity. Instead, athletics seems to be potentially at the crux of many HBCU financial woes. Almost unfathomable is that many in the SWAC/MEAC have athletic budgets higher than their research budgets.

The harsh reality is that even with all the popularity buzz generated by Jackson State University’s head football coach, Deion Sanders, the factors working against HBCU athletics ever achieving real profitability remains a pipe dream at best. To land a major television contract, which is the only reason on mass that the SEC and Big 10 are the profitable athletic programs they are requires something that HBCU alumni bases severely lack. Large fan bases that have high incomes and an affluence. The harsh reality that HBCUs have small alumni bases, a reality that has been exacerbated post-desegregation where now HBCUs only get 9 percent of African Americans in college, combined with African America having both the lowest median income and wealth do not make for a recipe for advertisers to pay top dollar to television stations who would then healthily compensate HBCU institutions. HBCU athletics can be profitable, but it requires a completely different business model than our PWI counterparts. See, “The 5 Steps To HBCU Athletic Profitability”.

HBCU athletic revenues went down while expenses and subsidies went up in 2019-2020. That is usually a trend all would prefer be flipped. Students continue to bear the brunt of generating HBCU athletic revenues. This year’s review shows that approximately 73 percent of HBCU athletic revenues are generated through subsidies, up from 70 percent the year prior. Something to consider when 90 percent of HBCU students graduate with student loan debt.

REVENUES (in millions)

Total: $200.4 (down 1.2% from 2017-2018)

Median: $10.3 (down 4.6% from 2017-2018)

Average: $10.6  (up 5.0% from 2017-2018)

Highest revenue: Prairie View A&M University  $18.7 million

Lowest revenue: Coppin State University  $2.8 million

EXPENSES (in millions)

Total: $213.0 (up 0.5% from 2017-2018)

Median: $12.5 (up 15.7% from 2017-2018)

Average: $11.2 (up 5.7% from 2017-2018)

Highest expenses: Prairie View A&M University  $18.7 million

Lowest expenses: Mississippi Valley State University  $3.9 million

SUBSIDY

Total: $148.4 (up 4.9% from 2017-2018)

Median: $6.4 (down 18.4% from 2017-2018)

Average: $7.1 (unchanged from 2017-2018)

Highest subsidy: Prairie View A&M University $15.5 million

Lowest subsidy: Coppin State University $1.7 million

Highest % of revenues: Delaware State University: 92.0%

Lowest % of revenues: Florida A&M University: 37.0%

PROFIT/LOSS (W/ SUBSIDY)

Total: $-12.7 million (down 40.0% from 2017-2018)

Median: $0 (up 100.0% from 2017-2018)

Average: $-666,295 (down 46.3% from 2017-2018)

Highest profit/loss: North Carolina A&T State University  $615,094

Lowest profit/loss: North Carolina Central University  $-6,264,082

PROFIT/LOSS (W/O SUBSIDY)

Total: $-161.0 million (down 6.8% from 2017-2018)

Median: $-9.8 million (down 40.0% from 2017-2018)

Average: $-8.5 million (down 13.3% from 2017-2018)

Highest profit/loss: Mississippi Valley State University  $-2,177,123

Lowest profit/loss: Prairie View A&M University  $-15,417,471

CONCLUSION: At current, it would take an approximately $4.3 billion endowment dedicated to athletics to ween the SWAC/MEAC off of these subsidies onto a sustainable path. A sum greater than all HBCU endowments combined. Perhaps through merchandise sales, Jackson State could see its way to profitability without subsidies. Perhaps, but as former HBCU alumnus and NFL Hall of Famer Shannon Sharpe recently said, “There is only one Deion Sanders”. One thing is for certain, HBCUs have not done a proper cost-benefit analysis for the money they spend and subsidize to their athletic departments nor have they explored potential alternative models.

Editor’s Note: Howard and Bethune-Cookman are excluded in this report because they are private institutions and their athletic finances were not included in this report.

Source: USA Today

GENTRIFIED – The Ten HBCUs With The Least African Americans On Campus

My experiences at Princeton have made me far more aware of my ‘blackness’ than ever before. I have found that at Princeton, no matter how liberal and open-minded some of my white professors and classmates try to be toward me, I sometimes feel like a visitor on campus; as if I really don’t belong. – Michelle Obama

A look at enrollment statistics from the National Center for Education Statistics show that currently of the HBCUs that receive federal funding (colleges such as Chicago State, Malcolm X College, and a few colleges are excluded because of the federal definition* of what an HBCU is defined as.) The problem of course with not amending that definition leaves no room for the evolution or expansion of the funding. It also continues to mean that others define us more than we define us. The acute tragedy of it means more importantly that money designated for building of African America’s higher education interest is being siphoned off by other communities. In some cases extremely so and that extreme is that on our list seven of the ten HBCUs listed have less than 50 percent of their student body being of African descent. 

T1. Saint Philip’s College (TX) – 9.2%

T1. West Virginia State University (W. VA) – 9.2%

2. Bluefield State College (W. VA) – 9.5%

3. Gadsden State Community College (AL) – 17.2%

4. Shelton State Community College (AL) – 35.2%

5. Lincoln University of Missouri (MO) – 46.2%

6. University of the District of Columbia School of Law (D.C.) – 47.5%

7. Central State University (OH) – 52.7%

8. Bishop State Community College (AL) – 58.9%

9. Fayetteville State University (NC) – 59.6%

10. Edward Waters College (FL) – 61.8%

These schools are the worst of the bunch, but by no means isolated. There are a number of HBCUs where the trend line shows a decreasing population of African descent against the total population of the school and were we to increase our cutoff to 70 percent, a considerable number of additional schools would have been added. This trend is in line with the recent release from the NCES stating, “The percentage of Black students enrolled at HBCUs fell from 18 percent in 1976 to 8 percent in 2014 and then increased to 9 percent in 2020.” What does it mean for African America’s higher educational interest that HBCUs are seeing their leadership and recruitment focused on taking ethnic diversity to a potential extreme? To the point where the school’s would no longer hold or be a cultural asset to African America? These are the questions that need to be asking in urgency, because for the institutions that remaining an African American institution is important too, then strengthening their K-12 pipeline for African American high school graduates is an urgent conversation to be had. That HBCUs do not focus on an Afrocentric definition of diversity, people of African descent from different parts of the Diaspora, African Americans from different geographies, economic backgrounds, religious backgrounds, etc. would still provide diversity shows we often take our cues for higher educational direction from PWIs and not a collection of our own thoughts.

It also more importantly begs the question that if an HBCU is only Black in historic terms only, should their federal funding be redistributed to HBCUS/PBIs who are still serving the higher educational interest of African America. The HBCUs listed (excluding UDC’s law school) received $280 million of the $2.7 billion in federal funding from American Rescue Plan Investment in Historically Black Colleges and Universities most recently, but given their populations, arguably very little is going to help African American students, their families, or our communities. Is the goal for the funding to be substantive to African American higher education development or just symbolic because without absolute consideration to that point, then we are simply getting more of the latter and not the former. 

HBCU Money’s 2021 Top 10 HBCU Endowments

If there was a short analysis of the 2021 HBCU endowment list it would be this – still not enough. Despite record breaking donations toward HBCUs from Mackenzie Scott and others in 2020-2021, the PWI-HBCU endowment gap among the Top 10 PWIs and HBCUs continues to balloon, a gap that stands at a staggering $121 to $1. This despite a 35 percent increase by the Top 10 HBCU endowments from last year. Simply put, winning the philanthropic “lottery” is not enough and it never will be when it comes to closing the endowment gap. The rabbit never beats the tortoise to put it another way. HBCUs must find a way to find consistent capital infusions over time as opposed to lighting quick one-offs.

The HBCU donor pool is simply too small and too poor (relatively speaking) to close the endowment gap. Without increasing the percentage of African Americans college students who go to HBCUs from 10 percent to 25-30 percent, it does not bode well for HBCUs to be able to close the endowment gap through traditional means. HBCUs and their alumni are going to have to be more creative and must be so expeditiously. While this is the most HBCU endowments we have ever reported with $100 million or greater, increasing from five in 2020 to seven in 2021, PWIs saw an 25 percent increase in the number of endowments over $2 billion going from 55 to 69 and an equally 25 percent rise in the number of endowments over $1 billion going from 114 to 142. This while HBCUs are still waiting for their first billion dollar endowment.

To that point, the race between Howard and Spelman is tightening. Last year’s $334 million lead that Howard held over Spelman has shrunk to $265 million. At one point it seemed a foregone conclusion that Howard would reach the milestone first (The Race To The First Billion Dollar HBCU Endowment: Can Anyone Catch Howard?), that is no longer the case. Howard’s public relations over the past year have not been favorable and while many people say all press is good press – not when you are an African American institution. With Hampton and North Carolina A&T’s departure from the MEAC, no HBCU conference (CIAA, GCAC, MEAC, SIAC, SWAC) is dominating the Top 10 and the list is split 50/50 between private and public HBCUs as well. Arguably this is the most diverse Top 10 HBCU endowment list since we first began publishing, but one thing remains feverishly consistent and that is there is a lot of work to be done to ensure HBCU endowments and therefore the institutions of HBCUs are sustainable and thriving.

HIGHLIGHTS:

  • Top 10 HBCU Endowment Total – $2.7 billion
  • Top 10 PWI Endowment Total – $328.7 billion
  • Number of PWIs Above $2 billion – 69
  • Number of PWIs Above $1 billion – 142
  • HBCU Median – $97.8 million (33.7%)
  • NACUBO Median – $200.4 million (25.8%)
  • HBCU Average – $203.8 million (53.6%)
  • NACUBO Average – $1.2 billion (35.2%)

All values are in millions ($000)*

1. Howard University – $795,203 (11.6%)

2. Spelman College – $530,399 (40.3%)

3.  Hampton University – $379,992 (35.4%)

4.  Morehouse College – $278,073 (77.0%)

5.  Meharry Medical College – $186,943 (19.3%)

6. North Carolina A&T State University  – $157,336 (113.2%)

7. Florida A&M University – $118,635 (24.4%)

8. Morgan State University$97,783 (162.9%)

9. Tennessee State University – $91,120 (33.2%)

10. The University of the Virgin Islands – $82,863 (23.9%)

OTHERS REPORTING:

*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 FY20 to FY21 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.

African American Poverty Rates Per HBCU State

HBCUs and strategic PBIs comprise 23 states in the Unites States along with the Virgin Islands and Washington D.C. HBCU Money decided to take a look into the African American poverty rates and overall poverty rates for each state where an HBCU operates. Included are states of California (Charles Drew University), Illinois (Chicago State University), New York (Medgar Evers College), and Massachusetts (Roxbury Community College) which are also states with significant African American populations. The results of these states show a median poverty rate of 34.6 percent for African Americans versus 20.3 percent overall which are show in parentheses per state. There are seven HBCU states where the African American poverty rate is 2X the general population.

Alabama – 40.1% (24.6%)

Arkansas – 35.9% (22.5%)

California – 28.6% (18.1%)

Delaware – 28.0% (18.5%)

Florida – 31.7% (20.3%)

Georgia – 30.9% (21.0%)

Illinois – 37.5% (17.0%)

Kentucky – 34.6% (22.4%)

Louisiana – 47.1% (28.0%)

Maryland – 19.5% (12.0%)

Massachusetts – 24.0% (13.5%)

Michigan – 41.2% (19.7%)

Mississippi – 42.5% (26.9%)

Missouri – 37.6% (18.6%)

New York – 30.8% (19.7%)

North Carolina – 32.3% (21.2%)

Ohio – 42.1% (20.1%)

Oklahoma – 40.2% (21.5%)

Pennsylvania – 32.7% (17.0%)

South Carolina – 36.7% (22.6%)

Tennessee – 37.0% (21.2%)

Texas – 26.4% (20.9%)

Virginia – 28.3% (14.0%)

Understanding the African American poverty rates is vital for HBCUs and alumni because it means many of our resources for students may need to be targeted toward the unique climb that many African American families face as they send students coming from impoverished backgrounds to college. Things such as travel to and from school during breaks, proper funding for nutrition beyond meal planning, adequate clothing and technology, and stronger life planning resources. The latter being significant because for many of these students they will be creating the foundation for their family. How do you do what nobody in your family has ever done? How do we help the families so that they do not overburden the student? While no formal evidence is know, there is anecdotal evidence that suggest a significant amount of HBCU students are likely sending portions of their financial aid or refunds home to help family members. This notion is supported by research from Thomas Shapiro in his book, “The Hidden Cost of Being African American”, where his research shows that African Americans pass money backwards generationally more than any other group.

Beyond just our students though, HBCU alumni should be creating mediums to help HBCUs be in a position to create social capital in our communities. Imagine for a moment, (Insert Your HBCU) Community Center – funded by HBCU alumni – that serves as a place for K-12 students and their families to receive community resources. This can be a place that provides internships for HBCU social work students, interdisciplinary research opportunities, and again an opportunity to position HBCUs as part of the community leadership and endear themselves in African American communities so that as children are aging HBCUs are at the forefront of their mind. For HBCUs this can be an opportunity that allows for the encouragement of more tangible giving projects for alumni and hopefully creating another means to increase alumni giving.

It must be taken into account that building wealth and reducing poverty are not the same thing, but they certainly dance with each other. Our families, communities, and institutions are often digging themselves out of significant holes that contribute to a lot of other issues we see ailing us. The first step for HBCUs, as one set of institutions part of a greater African American institutional ecosystem, is that we must understand there is a problem and look for ways that HBCUs can work with other African American institutions as well as work within our lane of community development in addressing African American poverty.

Source: U.S. Census Bureau

HBCU Money’s 2020 Top 10 HBCU Endowments

For the first time since we began reporting the Top Ten HBCU endowments, an HBCU endowment that we knew should be present but was not reporting is now present – Morehouse College. Hopefully next year we will see Tuskegee University join the fray. This provides a far more accurate picture of the HBCU endowment picture, at least at the top. While many will wonder why the endowments do not appear larger after massive donations that happen in 2020, it should be understood that many donations will not be reflective in the institutions endowment figures until fiscal year 2021 is reported so expect to see massive jumps for many HBCUs in the next calendar year.

However, examining the HBCU endowment world prior Mackenzie Scott’s 2020 philanthropy shows Howard University powering ahead toward becoming the first HBCU endowment to $1 billion. Their lead over number two Spelman extended from $302 million in 2019 to $355 million in 2020. Unfortunately, only four of the ten HBCU endowments saw increases in their endowment market value, while amongst the PWI’s Top Ten endowments all ten saw increases in their market value.* The Top Ten PWI endowments for 2020 combined for $199.8 billion versus $2 billion for the Top Ten HBCU endowments showing an institutional wealth gap of almost $100 to $1.

There is going to be a continued mixed bag of endowment reality among HBCUs. The Have and Have Nots among HBCU endowments has exacerbated and despite the attention during 2020 most smaller HBCUs have yet to secure donations that would secure their future. Even many of those who did are still sitting in a precarious perch. The NACUBO average endowment is over $907 million, an amount that is almost five times the average HBCU endowment and an average that not even Howard has reached yet. This means that while the “lottery” donations from non-HBCU sources is great, it absolutely does not remove the charge from HBCU alumni of being vigilant givers to their institutions. If HBCUs could simply get more of their alumni giving small amounts on a consistent basis that would do wonders for improving endowments. It goes without saying the other reality is that all HBCUs need to increase their student populations so that they are graduating more alumni and therefore more potential donors.

HIGHLIGHTS:

  • HBCU Endowment Total – $2.0 billion
  • Number of PWIs Above $2 billion – 55
  • Number of PWIs Above $1 billion – 114
  • HBCU Median – $95.6 million (-2.62%)
  • NACUBO Median – $165.7 million (0.58%)
  • HBCU Average – $187.7 million (0.13%)
  • NACUBO Average – $903.1 million (1.56%)

All values are in millions ($000)

1. Howard University – $712,410 (2.83%)

2. Spelman College – $377,942 (-3.21%)

3.  Hampton University – $280,598 (-0.69%)

4.  Morehouse College – $157,081 (0.64%)

5.  Meharry Medical College – $156,719 (-1.53%)

6. Florida A&M University – $95,635 (-2.63%)

7. North Carolina A&T State University  – $73,809 (7.82%)

8.  University of the Virgin Islands – $66,894 (-6.68%)

9. Tennessee State University – $63,020 (3.12%)

10. Virginia State University – $56,149 (-2.15%)

OTHERS REPORTING:

*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 FY19 to FY20 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.