Category Archives: Philanthropy

The HBCU Endowment Feature – North Carolina Central University

Posted on May 13, 2013 by | 2 comments

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School Name: North Carolina Central University

Median Cost of Attendance: $23 495

Undergraduate Population: 6 416

Endowment Needed: $3 014 865 600

Analysis: North Carolina Central University needs an endowment of approximately $3 billion for all of its undergraduates to attend debt free. Its current endowment is estimated to be 0.7 percent of the needed amount. Located in Durham, NC which is steeped in rich African American economic history the university is one of the bigger undergraduate populations amongst HBCUs. It also boast being one of only four HBCUs to have a law school. A law school which carries much prestige in the state of North Carolina often pulling in law students from the two prestigious HWCUs located nearby. Inexplicably, it finds itself the only one of the four HBCUs with a law school not located in the top ten HBCU endowments. The school should be commended for digging deeper into its endowment coffers a few years ago to help a number of cash-strapped students. This will turn out to be either a great long-term move assuming one (preferably many) go on to become high quality donors back to the university. Otherwise, it will set the endowment back almost $500 000 over the next decade and $1.4 million over the next 20 years in potential added principal.  North Carolina Central University is taking a risk that not many colleges or universities – HBCU or not – seem to be willing to take and that is do whatever it takes to reduce its students debt load and increase its alumni population. A contrarian approach that could shape the university in the coming generation. It ultimately still must fix the issue of producing so many law graduates and the breakdown in its lack of high quality donors from the group. An HBCU endowment with an enormous amount of potential that has only scratched the surface.

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.

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The HBCU Endowment Feature – Bethune-Cookman University

Posted on May 6, 2013 by | Leave a comment

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School Name: Bethune-Cookman University

Median Cost of Attendance: $22 958

Undergraduate Population: 3 527

Endowment Needed: $1 594 062 880

Analysis: Bethune-Cookman University needs approximately a $1.6 billion endowment for all of its undergraduates to attend debt free annually. The flagship private HBCU in Florida and the 7th ranked HBCU endowment in 2011 and 2012. An HBCU with one of the most storied histories via its founder Mary McLeod Bethune. Its current endowment is 2.6 percent of the needed endowment. Bethune-Cookman even with its prestige is sometimes forgotten in the whole of HBCU conversations and at times Mary McLeod Bethune’s ghost seems to lord a heavier presence than the institution she founded. Despite this, the school continues to produce quality graduates and has the 3rd lowest reported student loan debt per graduate in the MEAC. A vitally important factor in graduates being able to achieve wealth more quickly upon graduation and thereby being able to become qualified donors sooner. Unfortunately, Bethune-Cookman has a limited graduate school which is highly problematic for a flagship private school and should be an area the school looks to for an expansion. This is a primary limitation of the school producing more high quality donors long-term and could become problematic. However, if Bethune-Cookman has proven anything over the course of its history, it has proven to be a stable ship amongst HBCUs never wavering too far off course of its intended mission. It also must look to triple its undergraduate population over the next decade in order to increase the size of its alumni population. An issue facing almost every HBCU with Bethune-Cookman University not being exempt. A marketing campaign centered around its geography would not hurt the school’s ability to increase enrollment. Being located in Daytona Beach is an ideal setting to sell to high school graduates, transfer students, and graduate students. The school is on the cusp of becoming a $50 million endowment but would need to come up with an outside of the box capital campaign over the next decade to encroach on the $100 million endowment club. There certainly is not a steadier HBCU in Florida than Bethune-Cookman University at the moment and if it can continue to promote that stability it will undoubtedly payoff in the long run allowing it to maintain its place in the HBCU echelon.

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.

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The HBCU Endowment Feature – Bowie State University

Posted on April 29, 2013 by | Leave a comment

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School Name: Bowie State University

Median Cost of Attendance: $22 018

Undergraduate Population: 4 452

Endowment Needed: $1 960 438 240

Analysis: Bowie State University needs approximately a $2 billion endowment for all of its undergraduates to attend debt free annually. Located in a perfect triangle being approximately 40 minutes away from both Baltimore and Washington D.C. This is the perfect distance of two major cities for perspective students. Far enough away from home without being inaccessible to home. A factor that plays a major role in the decision-making of many in-state and regional students. It will provide for steady growth in the population. If it decides to push the boundaries of that student population growth into the five digits by the end of the decade it could have a phenomenal impact on donor giving for the next twenty-five years. However, it must be managed properly or it could have a devastating experience. Instead of graduating invested graduates a poorly managed high rate of growth could graduate disgruntled ones. The culture at Bowie State University suggest it is something that it can institutionally handle and handle well. Bowie State University remains right outside of the top ten HBCU endowments but a major donation campaign year, high quality donor, or strong investment return on its endowment could change that in the blink of an eye. Given its location, demographic potential, and strong institutional culture Bowie State University could become one of HBCUs leading public university endowments over the course of the next few decades. Something to watch as state cutbacks continue to have a substantial impact on all public colleges and universities.

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The HBCU Endowment Feature – Talladega College

Posted on April 22, 2013 by | Leave a comment

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School Name: Talladega College

Median Cost of Attendance: $17 996

Undergraduate Population: 712

Endowment Needed: $256 263 040

Analysis: Talladega College needs approximately a $256 million endowment for all of its undergraduates to attend debt free annually. Located in a distant shadow of Birmingham approximately 50 miles away the school is well positioned to be far enough away from the big city without being too far away from home for many prospective students. This makes future growth prospects for the college’s population very bright. A population in dire need of growth and needs to triple within the decade to give itself a fighting chance. Unfortunately, in the interim it simply is not graduating enough students and thereby its probability of high quality donors is diminished greatly. However, the students it does have, if they are successful in establishing themselves in Birmingham upon graduation could pay off greatly over the next 30 years as Birmingham is one of America’s fastest growing cities with an extremely healthy banking and medical industry along with an amazingly low cost of living. The college must position its graduates to own the growth that will occur in the coming decades and in doing so Talladega College will reap tremendous rewards. Its present situation is far removed from its historical one. Talladega College  in 1932 boasted the 7th largest HBCU endowment. Just where it stands now has been hard to pin down but safe estimates have it under $10 million. Ultimately, Talladega’s growth potential, geography, and relation to a major growth city give it the potential to become a major factor in the coming generation. If it manages these factors effectively we could see Talladega College once again rise to prominence.

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.

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The HBCU Endowment Feature – Grambling State University

Posted on April 15, 2013 by | Leave a comment

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School Name: Grambling State University

Median Cost of Attendance: $17 894

Undergraduate Population: 5 277

Endowment Needed: $1 888 532 800

Analysis: Grambling State University needs approximately a $1.9 billion endowment for all of its undergraduates to attend debt free annually. Grambling also affectionately known as “The House That Eddie Built” referring to Eddie Robinson, Sr. who was the legendary football coach that in many ways put Grambling State University on the map. There is no accurate source to know just what GSU’s current endowment is but it is safe to say by best guess estimates it is smaller than its in-state arch rival. A frightening prospect when one considers just the shape its arch rival is in although for different reasons. Grambling has one of the most loyal alumni in HBCU nation but it is not translating into consistent giving. There is some sense that Grambling has never quite had an academic niche. That it was prominently known for and at times seems to be in the jack of all trades and master of none box. This can work to their advantage if a strategy is developed around it, but right now it feels more like a ship at sea with no destination. It is geographically located in a great area to develop its graduate school. Located in the northern part of Louisiana, it has above average access to three states which it could heavily recruit in for graduate talent. It is there they could create higher quality donors. It faces a major obstacle in the politics of Louisiana seem intent on dismantling HBCUs. Primarily, this comes in the form of current governor Bobby Jindal and while Louisiana trails in almost every major educational category in the nation, the governor continues to find cuts. Particular those cuts are coming at the expense of African Americans. A joint political strategy between Grambling State University and Southern University to elect a governor that is more HBCU friendly could go a long way, but in order to do that each must first get its economic house in order. Demographics suggest that Grambling State University could be a $50 million endowment without blinking. Whether or not leadership can formulate a unique plan that entices the purse strings of its rabid alumni over the next 5-10 years remains to be seen. Grambling’s importance in northern Louisiana to the strategic development of HBCUs can not be understated. The eye of the tiger must find 20/20 focus or be endangered of going blind.

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.

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