HBCU Money

School Name: Alcorn State University

Median Cost of Attendance: $24 232

Undergraduate Population: 3 296

Endowment Needed: $1 597 373 440

Analysis: Alcorn State University needs approximately $1.6 billion in order for all of its undergraduates to attend debt free annually. It should be noted that the three public HWCUs in the state of Mississippi combined do not have $1 billion in endowment value between them. Alcorn State University was the 2012 HBCU of the year led by an aggressive campaign of change by its current leadership. From the outside the view of that change comes with mixed emotion of whether the school will stay true to its HBCU mission or evolve into a different type of university. If the adage all PR is good PR then Alcorn is leading the way. Making a splash being both HBCU of the year but also hiring the SWAC’s first European American coach certainly kept the school in the press. If they will be able to transform that press into donations is still too early to tell. The demographics of the state where the median income for African Americans is below the national poverty line does not make the matter any easier for building the endowment through the African American community which in part could explain the move away from its HBCU mission. Alcorn State University is in an uphill battle with some serious demographics pushing against it despite the arguably dynamic leadership and media exposure. Alcorn State University could certainly take a role as a community developer in the ilk of Hampton University which has proven financially beneficial for Hampton and could do the same for Alcorn State with very little competition in the area. An approximately $9 million endowment currently, it is badly in need of a major donation and not a pledge to give it a more sure footing for its future in whatever direction it chooses.

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.

School Name: Howard University

Median Cost of Attendance: $41 483

Undergraduate Population: 7 164

Endowment Needed: $5 943 684 160

Analysis: Howard University needs approximately $6 billion for all of its students to attend debt free annually. Howard University is in pole position to become the first HBCU to reach the billion dollar mark. The school has historically had a very dedicated alumni base that has translated into consistent giving which for compound interest reasons can be more important than inconsistently larger donations. The only full service HBCU with both a law and medical school, it has at its disposal a higher income bracket of graduate school alumni than all other HBCUs. This provides a significant advantage in its fundraising. It does not hurt that the school is located in the nation’s capital where many federal funding decisions are made. Washington D.C. also being the home of one of the strongest African American populations in terms of social, economic, and political capital. One mistake that could be made by its alumni and university however is being content. Spelman and Hampton are closing the gap rapidly and on the more macro scale Harvard is widening the institutional gap between African America and European America’s top universities. Resting on its laurels could be fatal especially as Howard continues to be one of the most expensive colleges, HBCU or not, in the country. Howard, not becoming dependent on the tuition revenue that its higher cost of attendance brings is vital to keep in the forefront of the development office. Making families and communities feel good about the investment they are making and reducing the burden should be at the forefront of their alumni so the school can continue to recruit the cream of the crop in academic talent which translates into wealthier alumni on average. Ultimately, it is hard not to see Howard University becoming the first HBCU to achieve a billion dollar endowment with its healthy dose of donations and consistently high investment returns. It appears inevitable with the only thing that can get in its away is itself, but the competition to a billion will be fierce make no mistake about it.

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.