Tag Archives: HBCUs

The HBCU Endowment Feature – Coppin State University

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School Name: Coppin State University

Median Cost of Attendance: $25 593

Undergraduate Population: 3 295

Endowment Needed: $1 686 545 760

Analysis: Coppin State University needs an approximately $1.7 billion endowment for all of its undergraduates to attend debt free. The university is located in Baltimore, Maryland. Coppin State University has become an orphan among stepchildren. The state of Maryland of has historically been brutal to HBCUs and it does not help that Coppin State University shares the state’s largest city with 2 other HBCUs and John Hopkins, the nation’s leading research institution. It is considered by many to be a diamond in the rough. Unfortunately, it is hard to see anyone uncovering that rough so long as the school remains in Baltimore. Location seems to be harming and not helping Coppin State University. It has no room to establish an identity or expand more importantly. The school should consider a relocation to Waldorf, Maryland which is located over a hour away from Baltimore. Waldorf is the 5th largest city in the state and has a 54 percent African American population. Only Baltimore has a higher African American percentage of African Americans. This space could give Coppin State University the opportunity to recruit students in Baltimore who might want to go “away” from home without being too far. Coppin State University has been known for producing quality nurses and teachers. The problem lies in that neither of these occupations produce the high quality donors that universities need to build their endowments. Of course if it honed its nursing program on the specialties that were the top earners that would greatly help. Coppin State University badly needs to find a professional niche it can grow. No small task and one that requires understanding the lay of the land, vision, and leadership. All of which Coppin State University has been lacking for many years now. Despite many problems there is no denying that Coppin State University possesses something special it just needs the space to show what it can do.

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.

HBCU Presidential Opening? Hire Neil deGrasse Tyson

If you want to build a ship, don’t drum up people to collect wood and don’t assign them tasks and work, but rather teach them to long for the endless immensity of the sea. – Antoine de Saint-Exupery

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I will admit that while I respect a great many of the new and rising leadership at HBCUs I still feel as if there is a secret sauce missing. We often still mentally box what we view leadership must be like to lead our colleges and universities. They are often from traditional African American disciplines or professions. That is not meant to be a slight at them because they are what they are. Those disciplines are needed but sometimes you need different. That difference could be the missing sauce to make this new hamburger we are building or re-building standout (depending on how one looks at it). To make it dynamic.

After watching Dr. Tyson speak before the Commerce, Science, and Transportation Committee it became clear to me that this is someone who could lead the STEM and research revolution amongst HBCUs. There is currently no more prominent of an African American face associated with STEM. Would it cost to get him? Yes. Is he interested in an HBCU? As often the case we will not know unless we ask. The real question is what board or alumni would be creative and aggressive enough to pursue someone like Dr. Tyson. If we want to improve our place in STEM then we need someone who understands it intimately on a structural level and on a public relations level.

Currently, HBCUs as a whole do about $600 million combined annually in research expenditures. On the surface while that sounds like a lot, it would not make the list of top 30 list of  research budgets at colleges and universities across the nation. Yes, there are 30 plus institutions that do over $600 million individually annually in research. Florida A&M, who led HBCUs in research in 2012, is doing only $53.5 million. The top of the heap continues to be John Hopkins University who conducts $2.1 billion annually in research by itself. It also would potentially create avenues that could allow HBCUs to become more competitive among the minefield that is the National Science Foundation and its questionable grant disbursements. Historically, HBCUs have received inadequate research funding from even the NSF and while President Obama has promised HBCUs $850 million over 10 years it would be much nicer if HBCUs were in position to receive the over $1 billion annually that the NSF hands out to the top tier research institutions.

If we need a reminder of why research is important then we just need to look at the economic state of our communities and our institutions. My favorite example of just what research on college campuses can produce is Google. It was developed at Stanford University while the two founders were PhD graduate students. An issue of HBCUs further developing their graduate programs and keeping their most talented within HBCU institutions is another article itself. The search engine that is now a verb currently employs 50 000 people. That is equivalent to 1/6th of the entire current HBCU student population. That is just ONE company whose co-founders have a combined net worth of $52 billion. There are thousands of other companies who have emerged as a result of STEM research on college campuses. The impact is so profound that the Kauffman Foundation’s study shows that MIT created companies alone would be the 17th largest economy in the world if they were their own nation. Unfortunately, due to a number of different reasons – a scientific vision not least among them – HBCUs have been slow to re-embrace its strong research heritage of the late 19th and early 20th century when men like George Washington Carver and others were transforming the American way of life through scientific research on HBCU campuses.

Dr. Neil deGrasse Tyson could provide a necessary spark to bring attention and resources to an HBCU willing to make the commitment. His presence would certainly make many gifted African Americans interested in STEM potentially pause and consider an HBCU. A school like Morris Brown, St. Paul’s, or Lewis College of Business who want to transform themselves could become the HBCU Institute of Technology. If we want to reach for the stars just maybe it is time we give leadership to someone who knows literally where to find them.

The HBCU Endowment Feature – Texas College

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School Name: Texas College

Median Cost of Attendance: $17 208

Undergraduate Population: 878

Endowment Needed: $302 172 480

Analysis: Texas College needs approximately $300 million for all of its students to attend debt free. Located 100 miles from Dallas, TX and 90 miles from Shreveport, LA puts Texas College in a sweet spot geographically. This could allow the school to grow triple in size in a very short period if its infrastructure could keep up with such exponential growth. Part of this growth could easily come from establishing a relationship for transfers from Southern University-Shreveport which is a two-year HBCU. Texas College is actually closer to SU-S than the flagship Southern University-Baton Rouge and could easily sway students who want to be away from home but not more than a few hours. With less than 1000 students the school needs to hit a growth spurt and fast in order to graduate enough alumni on an annual basis and increase the donor pool available to it. Of course at its current size there is the opportunity to build very intimate relationships with these graduates and establish donor relationship much earlier and on a personal basis. Texas College in 2012 led all HBCUs reported in NACUBO in terms of return on investment at 12.8 percent in a year when 70 percent of the top ten HBCU endowments had negative returns. This type of continued performance could bode well for them if they can get the raw dollars to boost the size of the money it is managing. The school has the talent to manage the money but its demographics need to grow for it become a relevant endowment in this era of expand or die.

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.

The HBCU Endowment Feature – North Carolina Central University

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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.

The HBCU Endowment Feature – Bethune-Cookman University

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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.