Life is a hard battle anyway. If we laugh and sing a little as we fight the good fight of freedom, it makes it all go easier. I will not allow my life’s light to be determined by the darkness around me. – Sojourner Truth
HBCU Money is officially a teenager. Usually the teenage years are a rough and tumultuous time and it is hard to see that being any differently for us. The current social and political climates that we are about to experience over the next four years will test our patience and fortitude. It is vital that HBCU Money stays a voice of focus, strategy, and guidance in the African American institutional space as it relates to economics, finance, and investment.
It is inherent that we continue to strengthen and build our African American institutional ecosystem. It is also vital that that ecosystem build bridges of connection with the African Diaspora institutional ecosystem. We must throw off the shackles of isolationism and island mentality that plagues us so deeply. Before we make decisions we must ask ourselves is there an African American institution that exist that serves that need or want. If it is not there, then we must discuss building it. Where is the HBCU that has an African American MBA that teaches us how to build and run businesses from our interest? Where is the HBCU that has a law school focused on African American agriculture and real estate? Where is the African American bank focused on export-import for African American businesses? Are we using our talents to enhance ourselves individually or are we using our talents to enhance our institutions that enhance the collective? These are just a few of the vital things we are missing in our financial infrastructure.
There is not much that needs to be said, but plenty that needs to be done.
It never ceases to amaze how easily appeased African America can be. We need 40 acres and instead allow ourselves to be given a pot with some dirt in it and are expected to act grateful. Ironically, often we do. “They gave us something” could be a whole mantra that we hear far too often when we need to show our communities that the mantra is “We fight not capitulate”. Time and time again PWIs show that they will put alligator and piranha filled moats around things like law schools, MBAs, and research to ensure that HBCUs never encroach on that institutional power. We get “agreements” that allow PWIs to pick and choose the best and brightest of our undergraduates for their graduate schools. The next Thurgood Marshall cannot come from one of our own HBCU law schools like the late justice but inevitably from a PWI law school where the molding of law and its purpose will be shaped how they see fit. Usually still to their benefit. The flagship HBCU in Mississippi cannot have a law school, it has an agreement. Imagine Ole Miss getting an “agreement” with something in Jackson State’s control. You cannot imagine it because it would never happen.
Historical and Structural Underrepresentation
Limited Legal Education Options for African Americans: Historically, African Americans were denied access to legal education at predominantly white institutions (PWIs) and were often left with no choice but to attend the few law schools established at Historically Black Colleges and Universities (HBCUs). Today, there are only six HBCU law schools:
Howard University School of Law
Southern University Law Center
Texas Southern University Thurgood Marshall School of Law
Florida A&M University College of Law
North Carolina Central University School of Law
University of the District of Columbia David A. Clarke School of Law
None in Mississippi: Despite Mississippi’s large African American population (nearly 40% of the state), there are no HBCU-affiliated law schools in the state. This lack forces African American students to compete for limited seats at existing law schools, often in environments that may not prioritize their unique needs or cultural experiences.
Historical Context of Discrimination in Mississippi Higher Education
Systemic Exclusion: For much of the 20th century, African Americans were excluded from attending predominantly white institutions (PWIs) in Mississippi. Segregation laws and practices relegated Black students to underfunded HBCUs, such as Jackson State University.
Funding Disparities: HBCUs in Mississippi have historically received significantly less funding than PWIs. This underfunding has limited their ability to expand academic offerings and infrastructure, including professional programs like law schools.
Ongoing Disparities
Resource Inequities: Mississippi’s higher education system continues to show disparities in funding and resources between HBCUs and PWIs. These inequities impact the quality of education and opportunities available to students at HBCUs.
Underrepresentation in Legal Education: African Americans remain underrepresented in Mississippi’s existing law schools, including the University of Mississippi School of Law and Mississippi College School of Law. These institutions do not adequately address the unique challenges faced by Black students and communities.
Pipeline Challenges: The lack of professional schools at HBCUs in Mississippi limits pathways for Black students to enter high-impact fields like law, perpetuating disparities in representation and leadership.
Historical Challenges at the University of Mississippi
Resistance to Integration: The admission of James Meredith in 1962 as the first African American student at Ole Miss was met with violent riots, requiring federal intervention. This historical event illustrates the extreme resistance to racial integration and set the tone for ongoing challenges faced by African American students.
Legacy of Segregation: The University of Mississippi, like many Southern institutions, has a deeply entrenched history of segregation that continues to influence campus culture and attitudes.
Ongoing Issues Faced by African American Students
Hostile Campus Environment: Many African American students at Ole Miss report feeling unwelcome or isolated due to a predominantly white student body and lingering racial tensions. Incidents of racism, such as vandalism of monuments and racist social media posts, contribute to a climate of hostility.
Symbolic Racism: The continued presence of Confederate symbols, including statues and the former use of Confederate imagery in campus traditions, reinforces a sense of exclusion for Black students. Efforts to remove or contextualize these symbols have been slow and controversial.
Underrepresentation: African American students are underrepresented at Ole Miss compared to the state’s demographics, limiting opportunities for meaningful diversity and inclusion.
Incidents of Racial Harassment: High-profile incidents, such as the noose placed around the statue of James Meredith in 2014, serve as stark reminders of ongoing racial animosity. These events create psychological distress and reinforce systemic barriers for Black students.
The African American brain drain into predominantly white institutions (PWIs) poses a significant challenge to the mission of historically Black colleges and universities (HBCUs) like Jackson State University (JSU). Establishing a law school at JSU would address this issue by offering a culturally affirming and accessible path for African American students to pursue legal education. This initiative would help retain talent, strengthen HBCU legacies, and diversify the legal profession.
Understanding African American Brain Drain
What is Brain Drain? Brain drain occurs when highly capable and motivated individuals, particularly African Americans, leave HBCUs to pursue educational and career opportunities at PWIs. This is often due to the lack of specialized or professional programs, such as law schools, at HBCUs.
Mississippi’s Context: Mississippi is home to several HBCUs, including Jackson State University, but none of these institutions offer legal education. As a result, aspiring African American lawyers in Mississippi are compelled to attend PWIs such as the University of Mississippi School of Law or Mississippi College School of Law, or leave the state entirely.
Impacts of Brain Drain
Cultural Isolation: African American students at PWIs often report feelings of isolation and marginalization due to a lack of diversity in faculty, curriculum, and campus culture. This can hinder their academic and professional development.
Loss of HBCU Legacy: When African American students leave HBCUs for PWIs, they miss the opportunity to benefit from the culturally affirming and supportive environments HBCUs provide. HBCUs foster a sense of community and empowerment that is particularly important in professional fields like law.
Weakened HBCU Influence: Brain drain diminishes the influence of HBCUs by limiting their ability to produce leaders in fields like law, where African Americans are already underrepresented. This affects the ability of HBCUs to contribute to societal change through their alumni.
The Role of PWIs in African American Brain Drain
Limited Inclusion: PWIs often fail to adequately support African American students. Issues such as implicit bias, underrepresentation among faculty, and a lack of focus on issues relevant to African American communities make these institutions less ideal for Black students.
Recruitment of Top Talent: Many PWIs actively recruit top African American talent, which they recognize as essential for promoting diversity. However, these efforts can inadvertently draw students away from HBCUs that would better align with their cultural and educational needs.
Mississippi became the last state to remove the Confederate battle flag from its state flag in 2020. The birthplace of Medgar Evers who was murdered in his driveway. It is the home of the Freedom Summer that saw three voting rights activists murdered that brought nationwide attention and shun a spotlight on the atrocities. The potential for the impact of a law school at Jackson State University and the creation of the seventh HBCU law school would be profound. African Americans constitute almost 15 percent of the US population and 40 percent of the Mississippi population, but less than 9 percent of Mississippi’s active lawyers are African American. An “agreement” with Ole Miss is highly unlikely to change that paradigm. This is a chance for an African American institution to not take the bull by the horns, but be the bull.
Amplifying the Civil Rights Legacy
Mississippi’s Legacy of Activism: The state has been at the center of the civil rights movement, with many battles fought for racial equality and justice. A JSU law school could build on this legacy, preparing lawyers to continue the fight against discrimination and inequality.
Empowering Marginalized Communities: By training lawyers from diverse backgrounds, the law school could directly address issues like voting rights, criminal justice reform, and educational equity—critical areas in a state still grappling with the effects of systemic racism.
The Role of JSU in Filling the Gap
Addressing Local Needs: A law school at JSU would directly address the absence of African American legal institutions in Mississippi, offering a local and affordable option for students who wish to study law in a supportive environment.
Culturally Relevant Curriculum: As an HBCU, JSU could design a curriculum that emphasizes the legal challenges faced by African American communities, such as systemic racism, criminal justice reform, and civil rights advocacy.
Building a Pipeline of Black Lawyers: By increasing access to legal education for African Americans, JSU could help diversify the legal profession and prepare graduates to address the specific legal needs of marginalized communities.
How a JSU Law School Can Address Brain Drain
Retaining Talent in Mississippi: Establishing a law school at JSU would give African American students in Mississippi the option to pursue legal education at an HBCU without leaving their state or community.
Culturally Relevant Education: A JSU law school could tailor its programs to address the legal challenges most relevant to African American communities, such as civil rights, voting rights, and criminal justice reform.
Strengthening HBCU Legacies: By offering a law program, JSU could enhance its reputation as a premier institution for African American education and leadership, attracting top talent to remain within the HBCU ecosystem.
The Need for an Inclusive Legal Education at JSU
Safe and Supportive Environment: An HBCU law school at Jackson State University would provide a nurturing environment for African American students, free from the racial hostility that has been reported at Ole Miss.
Focus on African American Legal Issues: A law school at JSU could emphasize areas of law that disproportionately impact Black communities, such as civil rights, voting rights, criminal justice reform, and housing law.
Addressing the Legacy of Exclusion: By creating a pathway to legal education specifically designed to empower marginalized groups, JSU could challenge the structural inequalities that have persisted in Mississippi’s higher education system.
Broader Benefits of a JSU Law School
Community Impact: Graduates of a JSU law school would be more likely to practice in underserved and predominantly African American communities, addressing legal deserts in Mississippi and beyond.
Representation in the Legal Profession: Increasing the number of African American lawyers trained at an HBCU would help diversify the legal profession and create more advocates for systemic change.
Economic and Cultural Reinvestment: Retaining African American students at JSU would help prevent the economic and cultural losses associated with brain drain, fostering stronger HBCU communities and alumni networks.
Mississippi’s lack of African American legal institutions highlights the urgency of a law school at JSU. Such a school would address historical exclusion, provide a platform for empowerment and justice, and meet the unique legal needs of African American communities. JSU’s law school could play a pivotal role in advancing social justice and transforming the legal profession.
The challenges African American students face at PWIs like the University of Mississippi further emphasize the need for supportive alternatives. A law school at Jackson State University would create an environment where Black legal scholars can thrive, challenging systemic inequities in higher education. By fostering a new generation of African American lawyers, JSU could significantly advance African America’s institutional empowerment, justice, and opportunity across Mississippi and beyond.
It is hard to imagine with the current social and political climate that has seen the Southern “attitude” towards African America emboldened that a partnership or agreement with the flagship institution of that attitude being anything more than cover for continued behavior and a means of a subversive quelling of African American institutional empowerment and independence. The Medgar Evers Law School at Jackson State University located in the capital of the state that is a symbol of power being named after Medgar Evers and a substance of power being a law school in the heart of Dixie. A heart that African America needs to be break.
“Everything that I’ve gone through informs me and my opinions in a way, I guess because I am a child of segregation. I lived through it. I lived in it. I was of it.” – Samuel L. Jackson
One thing most financially literate people realize is that it is not how much you make, but it is how much you keep. Those who are of a wealth building mindset realize it is not how much you keep, but how much of your capital is actually working to make you wealthier without your labor being attached to it. African American individuals, households, and institutions struggle in both cases, but mightily in the latter. Most African American wealth, as highlighted by the amount of time the African American dollar remains in our community (less than 6 hours), does little to no work for the wealth building of those three entities. A major reason for this is that African American individuals, households, and yes, even institutions put little to none of their money in African American institutions – ironically.
Economic Disparities
“According to a report by the Federal Reserve, the median net worth of African American households headed by someone aged 55-64 (who would generally be considered Baby Boomers) was around $39,000 in 2019. This is substantially lower than the median net worth of European American households in the same age group, which was around $184,000 in 2019. It’s important to note that there is significant variation within both groups, and wealth is influenced by a range of factors including income, education, and access to resources.”
Insider Intelligence gives a generational demographic breakdown reporting that, “Baby boomers were the largest living adult population until 2019. According to the US Census Bureau, US boomers have remained the second-largest population group in 2022, comprised of 69.6 million people ages 58 to 76.” And Statista reports that there are 43.26 million Boomer households meaning that approximately 4.8 million of those are African American. This then puts African American Baby Boomer wealth at approximately $187.2 billion – but what of it?
Each eldest generation will push wealth forward one way or another. Where it flows though can be largely up to the person. Some will push it to the next generation of family and friends, charities and organizations, and there are a host of other options of where money can find itself as one begins to consider their legacy both in the here and now or from the beyond. One things is crystal clear though from a Brookings Institute study, African Americans are falling behind with every passing generation, “30% of European American households received an inheritance in 2019 at an average level of $195,500 compared to 10% of African American households at an average level of $100,000.” African Americans both receive 50 percent less than their European American counterpart and European Americans are three times more likely to get an inheritance than their African American counterpart – but again what of it?
While the wealth of even African American Baby Boomers is not that of their counterparts, it should have the opportunity to make far more considerable impact than it probably actually will. As African American baby boomers age, a significant transfer of wealth is expected to occur. This presents an opportunity for younger generations to invest in education, home ownership, and entrepreneurial ventures. However, research indicates that many African American families face systemic barriers, such as lower access to financial resources and education, which could impact how this wealth is utilized and preserved.
Despite the considerable wealth held by baby boomers, economic disparities persist within the African American community and its institutions. Issues such as income inequality, lack of business ownership, access to African American owned financial institutions, limited access to financial literacy resources, and a disconnected institutional ecosystem can hinder the effective management and growth of inherited wealth. Addressing these disparities will be crucial in ensuring that future generations can leverage this wealth for long-term benefits.
Philanthropy and Community Investment
Many African American baby boomers are inclined to support causes that uplift their communities. This philanthropic inclination could lead to increased investment in African American nonprofits, education initiatives, and other community organizations. By directing funds towards institutional development, these donors can help address systemic issues and create lasting change.
Financial Planning and Literacy
The management of this wealth will largely depend on the financial literacy of both the current baby boomer generation and their heirs. Increasing access to financial education, resources, and African American owned financial institutions is essential to ensure that wealth is not only preserved but also strategically invested. Programs aimed at enhancing financial connectivity between African American households and African American financial institutions within the African American community can play a significant role in maximizing the impact of this wealth.
The fate of the $188 billion in wealth held by African American baby boomers is not just about the transfer of assets; it’s about how those assets can be utilized to build a stronger future for the community. By focusing on education, philanthropy, and addressing systemic barriers, there is potential for this wealth to make a profound impact on the lives of future generations. Ensuring that this wealth is effectively managed and directed towards meaningful causes will be crucial in shaping a more equitable and prosperous future for the African American community. In the end, the only real question is how much of the $188 billion will end up in African American institutions. Whether those organizations be African American social, economic, or political institutions is up to the household, but this is the most acute potential for institutional transformation that African America will have seen since 1865.
Disclosure: This article was assisted by NOVA AI and ChatGPT.
“Philanthropy is an exercise in power, by definition by the wealthy.” – Rob Reich
After an abysmal 2022, the HBCU Million Dollar Gifts list in 2023 bounced back? Well, sort of. In 2022 there were only three donations and now in 2023 there are five. Mathematically one would argue for that being a 66 percent increase, but then one realizes there were twice as many $100 million donations given or pledged to PWIs as there were $1 million donations given or pledged to HBCUs it throws water colder than the artic onto the conversation. Furthermore, one of those donations was pledged in 2023 by one Sean Combs who is now arguably in so much legal trouble that the pledge will likely never turn into a gift for its recipient, Jackson State University. To make the donation by Mr. Combs even more frustrating, it was the only one among the list by an African American further reinforcing that African American donors who can give million dollar donations are still not interested in supporting HBCUs with any fever.
The donations that did arrive went to the usual suspects of Howard (2), Spelman, and Tuskegee. Unless Spelman has a massive donation up its sleeve (and it is certainly possible), then Howard is going to coast to becoming the first HBCU to have a $1 billion endowment. To put in perspective how large the acute the donor crisis is between PWI and HBCU donors requires just taking a look at the largest 2023 donation by a donor. James Simons and Marilyn Simons gave a gift of $500 million to SUNY Stony Brook. A donation equal to over 50 percent of the Howard University’s endowment and over 90 percent of Spelman College’s endowment. Meanwhile, African America’s wealthy are virtually silent year after year.
There continues to be a massive disconnect of African America pouring resources into its own institutions. This is as true of the lack of African American donors to HBCUs as the embarrassment that virtually no HBCUs bank with an African American owned bank or even two premier HBCUs in Hampton University and North Carolina A&T University leaving an HBCU conference for a PWI one. The island mentality of everyone and every institution looking out for themselves while claiming they are for the community has reached a nauseating level year after year and should make anyone wonder if there is any reason to have hope. None of this fairs well for smaller HBCUs with the looming enrollment cliff crisis facing all American colleges and universities and for which HBCUs will certainly bear the brunt as with almost every crisis that America has.
Overall donations to all colleges and universities were down a second straight year in 2023 dropping from 275 to 259 Million Dollar Gifts.
$1 Million Plus Donations To All Colleges: 259
$100 Million Plus Donations To All Colleges: 10
$1 Million Plus Donations Value To All Colleges: $6.1 Billion
$1 Million Plus Median Donation To All Colleges: $10.0 Million
$1 Million Plus Average Donation To All Colleges: $23.6 Million
$1 Million Plus Donations To HBCUs: 5
$100 Million Plus Donations To HBCUs: 0
$1 Million Plus Donations Value To HBCUs: $45.6 Million
$1 Million Plus Median Donation To HBCUs: $10.0 Million
$1 Million Plus Average Donation To HBCUs: $9.3 Million
HBCU Percentage of Donations To All Colleges: 1.9%
HBCU Percentage of Donation Value To All Colleges: 0.8%
1. Carrie Walton Penner and Gregory Penner (pictured) – $20.0 million Recipient: Howard University Source of Wealth: Professional Sports, Family Wealth, Finance
2. MacKenzie Scott (pictured) – $12.0 million Recipient: Howard University Source of Wealth: Technology, Retail
3. John Brown and Rosemary Brown (pictured) – $10.0 million Recipient: Spelman College Source of Wealth: Health Products
4.Stephen Feinberg – $3.6 million Recipient: Tuskegee University Source of Wealth: Finance
5.Sean Combs – $1.0 million (Pledge) Recipient: Jackson State University Source of Wealth: Entertainment
“I have found that among its other benefits, giving liberates the soul of the giver.” – Dr. Maya Angelou.
If you’ve been considering joining or starting an philanthropy club with your family, friends, or fellow HBCU alumni but are unsure if it’s the right move, you’ve come to the right place. The answer is it is absolutely the right move.
A few facts regarding African American organizations and nonprofits:
43.5% of Black-led nonprofits operate without any paid, full-time employees, and 45.7% have no paid, part-time employees.
Philanthropy clubs can be a powerful tool for leveraging African American philanthropy from like-minded individuals. They not only enhance your financial literacy and knowledge about African American and African Diaspora organizations but also empower you to make informed philanthropic decisions. By pooling your resources with your family, you can collectively grow your impact African American nonprofits finances and outreach, fostering a sense of confidence and control over institutional development and empowerment.
Keep reading as we discuss why you might want to start an investment club and the steps you’ll need to take.
Why You’ll Want to Start a Philanthropy Club?
One of the biggest reasons to start an philanthropy club is that they want to learn and share ideas with people who share their values. It makes sense to start a philanthropy club with family, friends, or HBCU alumni because, most of the time, your values are well-aligned. Yes, you may have different opinions, but your values are generally on the same page.
Philanthropy clubs can be a great way to learn about African American causes, organizations, and nonprofits. Because some members may be more seasoned donors, givers, or active in the nonprofit space, they can share their knowledge on certain topics.
Philanthropy clubs are a great way to magnify small donations by each member into a large donation by a focused collective. the increase the impact associated with investing. However, with the rise in so many commission-free brokers, the fees for making a high volume of trades aren’t as big of a deal.
How to Start an Investment Club
If you’re ready to get your philanthropy club with family, friends, or HBCU alumni off the ground, you’ll want to follow these steps to ensure success:
1. Find and Organize Members
Finding members for a philanthropy club is generally one of the most challenging steps. However, it’s a little easier if you’re looking to start one with your family, friends, or HBCU alumni. Either way, ensuring the fit is correct before jumping in is crucial.
A solid philanthropy club should have at least 5 people but no more than 15 or 20. You must have enough ideas, but too many can make things more difficult. Each person will be required to identify a cause, organization, or nonprofit. Then, each month, a different member will present their cause, organization, or nonprofit to the group.
Before extending an invitation to different anyone, ask yourself a few questions. These will help you see if it will be a good fit.
Do you trust the person you’re thinking of inviting to be consistent and involved?
Will they bring research and ideas to the meetings?
Are they organized?
Are they going to pay the monthly donation on time?
2. Determine Your Goals
Once you have your members set, you must agree on your goals. Most clubs’ goals will be making donations and learning from others. But how are you going to get to that point?
It’s important to take some time to understand each member’s philanthropic approach. Are they willing to take on more risk or prefer to be more conservative? Do you want to stick with only well known organizations, or are members interested in startup organizations as well? Do they only want to give to domestic organizations? Or are they willing to give to African Diaspora nonprofits working in Haiti, Jamaica, UK, or Africa?
Developing a plan of attack and ensuring that each member is on the same page will be vital to success.
3. Decide How You Want To Give
Deciding on if you want to setup a legal structure for your philanthropy club is important because potentially over time, your club can setup an endowment that invest donors money and that can grow into a significant and sustainable amount of money. Having the necessary legal protections is going to be important. If your philanthropy club decides to actually invest its donations into investments that will grow over time so that the club has larger and more sustainable sums to give is important to think about.
The other option is to simply give everyone the option to donate on their own once the cause, organization, or nonprofit is decided upon. This route relies on the honor system or some type of peer accountability towards giving.
Each philanthropy club must do what works best for them and also realize that the club is allowed to evolve over time.
The Bottom Line
Philanthropy clubs are a great way to pool your donor funds and learn from other members. Just be sure that you join a group where everyone is willing to listen to ideas and pull their own weight within the club.
HBCU Money 