Category Archives: Philanthropy

The HBCU Endowment Feature – Morgan State University

Posted on October 30, 2012 by | Leave a comment

School Name: Morgan State University

Median Cost of Attendance: $15 095

Undergraduate Population: 6 711

Endowment Needed: $2 026 050 880

Analysis: Morgan State University needs approximately a $2 billion endowment to allow all of its students to attend school debt free annually. Located in Baltimore it shares the city with one other state HBCU. Immense opportunity and challenges exist for Morgan State University. In a city with the seventh largest African American population by numbers the opportunity to grow its population with homegrown talent is immense. High school graduation rates for African Americans have improved dramatically in the city the past year but with fiscal cuts coming from the federal and state governments it remains to be seen if the improvement can be sustainable without strong commitment from the private sector. Home to multiple African American owned banks there is opportunity to secure real sponsorships and circulation between the African American private sector and the university. Prior to the great recession Maryland also boasted the highest median income for African Americans in the nation for states with sizable African American populations. This leaves a bit of head scratching then for a school with its size and income around it to only have a $2 million endowment which is a mere 0.1 percent of the amount needed. While the opportunity is there for Morgan State University to easily become a top five endowment there is obviously a disconnect somewhere. If the riddle can be solved watch for Morgan State to become one of the darlings of HBCU endowments.

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.

Leave a comment

Posted in Philanthropy

The HBCU Endowment Feature – Cheyney University of Pennsylvania

Posted on October 23, 2012 by | Leave a comment

School Name: Cheyney University of Pennsylvania

Median Cost of Attendance: $18 227

Undergraduate Population: 1 151

Endowment Needed: $419 585 520

Analysis: The oldest HBCU in America needs approximately $420 million to send all of its undergraduates to school debt free annually. There are only two HBCUs in Pennsylvania. By sheer numbers the state of Pennsylvania has the 13th largest African American population and the city of Philadelphia has the 3rd largest African American population in the United States. This provides immense opportunity for rapid growth for Cheyney to grow its student population as a public institution. For public institutions the size of its student population is an immense driver of its endowment. In Cheyney’s case having to share the state of Pennsylvania with only one other HBCU gives it a ripe opportunity to become an aggressive recruiter by creating stronger ties with African American high schools in Pennsylvania. The grounds are ripe for Cheyney to blossom into a stalwart HBCU institution in the African American community and become a regional powerhouse in the tri-state area. It does have a headwind of not being as well known in HBCU circles as its southern counterparts but this gift and curse can give it the opportunity to not become pigeonholed and define a more aggressive course and maintain its mission and purpose to the African American community in Pennsylvania. Also dealing with an unknown situation of its current endowment makes it hard for HBCU supporters to want to lend support not knowing exactly the school’s endowment standing. A better transparency in this area could helpful. All said the opportunity to grow its endowment and influence long-term looks promising given its geographic monopoly in one of the largest concentrations of African America.

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.

Leave a comment

Posted in Philanthropy

Tagged , , ,

The HBCU Endowment Feature – Livingstone College

Posted on October 16, 2012 by | Leave a comment

School Name: Livingstone College

Median Cost of Attendance: $22 050

Undergraduate Population: 1 140

Endowment Needed: $502 740 000

Analysis: Livingstone College needs approximately $500 million to allow all of its students to attend school debt free annually. For some perspective on this amount the largest donation ever given to an institution of higher education was by Intel co-founder Gordon Moore and his wife Betty, who donated $600 million to California Institute of Technology.

As with many small private HBCUs the school’s population is a problem for its endowment growth. A number of colleges and universities surveyed by U.S. News annually recently showed an annual alumni giving rate of 13.5 percent which means a small alumni base much of which has limited wealth is limited in its ability to contribute substantially. HBCUs in general usually having an alumni giving rate lower than the overall average. The mixture of limited wealth of African America and limited alumni population presents a challenge but also an opportunity.

Livingstone has the ability to have very intimate relationships with their alumni. Bringing all of the alumni into the gym for a speech during homecoming about giving and why it is important could go a long way for Livingstone. It is the only AME Zion four-year college which means its endowment should be growing at an exponentially faster rate than it has been given its monopoly on the 1.4 million members of the church. Unfortunately, the school is reported to only have a $1.5 million endowment or roughly 0.3 percent of the needed endowment. It would be interesting to know the percentage of AME Zion members who both attended the college and are sending their children to the college. Arguably, the population would be significantly larger if a deepening of the commitment by the church to the college were to take place on a number of strategic levels. Livingstone has some unique ingredients very few HBCUs have to grow its endowment and become a formidable liberal arts education institution but as oft is the case the question comes down to organizing a vision and leadership having the commitment to see it through.

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.

Leave a comment

Posted in Philanthropy

Tagged , , ,

The HBCU Endowment Feature – Dillard University

Posted on October 9, 2012 by | Leave a comment

School Name: Dillard University

Median Cost of Attendance: $27 436

Undergraduate Population: 1 249

Endowment Needed: $685 351 280

Analysis: Dillard University needs approximately $700 million to allow all of its students to attend the university debt free annually. The university now under new leadership will be looking to aggressively grow its community presence in New Orleans and its student population. According to US News, the university currently has approximately a $55 million endowment which is an extremely healthy endowment for its population size. It is safe to assume the population growth could push Dillard into the $100 million conversation within 10 years. This could be especially true given the number of alumni Dillard sends into the medical field which should benefit them greatly as the baby boomers move into retirement. Although they are a private school there will certainly be political pressures on even private HBCUs in Louisiana which will be something to keep an eye on. Overall, Dillard is an endowment to watch and should remain a strong presence in the top ten HBCU endowments.

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.

Leave a comment

Posted in Philanthropy

Tagged , , ,

The HBCU Endowment Feature – Meharry Medical College

Posted on October 2, 2012 by | Leave a comment

School Name: Meharry Medical College

Median Cost of  Attendance: $73 510

Professional Population: 786

Endowment Needed: $1 155 577 200

Analysis: One of the most under appreciated yet prominent names among HBCUs. Meharry Medical College is the oldest African American medical school and currently holds the 5th largest endowment of HBCUs. A quite amazing feat for a school that never has had more than 800 students and a 3 percent admittance rate. Obviously it being a medical school the earning power of its graduates is substantial which makes up for its small population. Its current endowment is 9 percent of what it would need to fund all of its students debt free annually. One of the highest percentages thus far in our analysis of HBCU endowments. It is hard to say though whether or not its lack of population though will ultimately allow it to really compete long term for the first HBCU to reach the $1 billion endowment mark. With a storied tradition and faithful alumni with growing pockets one has to expect as the baby boomers leave estates, a school that looms so prominent in building the upper middle class of African America will see a dramatic spike in its endowment that could push it into serious contention.

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.

Leave a comment

Posted in Philanthropy

Tagged , , , ,