Tag Archives: HBCUs

The HBCU Endowment Feature – Shaw University

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School Name: Shaw University

Median Cost of Attendance: $22,258

Undergraduate Population: 2,265

Endowment Needed: $1.1 Billion

Analysis: Shaw University needs approximately $1 billion for all of its undergraduates to attend debt free annually. A media darling among HBCU circles over the past five years as its athletic program grabbed the spotlight in both football and basketball. It culminated with a Division II national championship for the women’s basketball team. Traditionally, athletic achievements have spurred alumni giving but it is still too early to tell if Shaw’s success will translate into significant donations for the Univesity. The school boast a healthy science tradition that if nurturted over the next ten to twenty years could produce significantly high quality donors based on the economy shifting towards a major healthcare boom thanks to the baby boomer generation’s looming retirement. This could provide a significant increase to their endowment over the coming generation. Shaw University has a limited graduate studies program and unless it has plans for expansion in that area it will need to see its undergraduate increase significantly in size. Geographically, the university is located in Raleigh, the heart of North Carolina’s Research Triangle, and lends itself a great opportunity for quality academic and economic recruitment. Raleigh is home to four community colleges and ten four year colleges (including Shaw) so recruitment is fierce. One thing is for sure though if Shaw University continues to find ways into the media spotlight through its balanced approach of bio-academic and athletic achievements it will be an endowment with the potential to make waves in the coming decades.

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 – Clark Atlanta University

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School Name: Clark Atlanta University

Median Cost of Attendance: $34 218

Undergraduate Population: 3 127

Endowment Needed: $2 139 993 760

Analysis: Clark Atlanta University needs approximately $2.1 billion for all of its undergraduates to attend debt free annually. The school where W.E.B. DuBois taught after achieving his doctorate from a college in the Northeast remains the least known of the AUC trio despite a storied history of its own. Clark Atlanta has a geographic advantage that it certainly can exploit by being the only HBCU with a graduate school in a major metropolitan in the deep southeast which should allow it to be a major draw for HBCU undergraduates within the states of Georgia, Florida, South Carolina, and even arguably Alabama. If Clark Atlanta focuses on developing its graduate school, it could become a research juggernaut among HBCUs in the southeast and the spillover effects into its endowment could easily catapult Clark Atlanta University into the billion dollar endowment conversation amongst HBCUs. The university must also do something to stem its declining undergraduate population. Something that will be very hard in terms of attracting top tier students being the proverbial third wheel in the AUC. Distinguishing itself on the graduate level could stabilize the school and help it produce high quality graduates that in turn would produce sizable gains for the Clark Atlanta endowment. If it does not find its niche we could see a continue steady decline at the teaching “home” of DuBois. However, if it can make the pivot and establish a vision on the graduate level then the Clark Atlanta endowment will find new air.

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.

Student Debt Profile By Conference (School By School) – The SIAC

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Albany State University

Average debt of graduates, 2011 – $32 034

Proportion of graduates with debt, 2011 – 90%

Nonfederal debt, % of total debt of graduates, 2011 – 4%

2010-11 Pell Grant recipients – 76%

Benedict College

Average debt of graduates, 2011 – N/A

Proportion of graduates with debt, 2011 – N/A

Nonfederal debt, % of total debt of graduates, 2011 – N/A

2010-11 Pell Grant recipients – 84%

Central State University

Average debt of graduates, 2011 – N/A

Proportion of graduates with debt, 2011 – N/A

Nonfederal debt, % of total debt of graduates, 2011 – N/A

2010-11 Pell Grant recipients – 76%

Claflin University

Average debt of graduates, 2011 – N/A

Proportion of graduates with debt, 2011 – N/A

Nonfederal debt, % of total debt of graduates, 2011 – N/A

2010-11 Pell Grant recipients – 70%

Clark Atlanta University

Average debt of graduates, 2011 – N/A

Proportion of graduates with debt, 2011 – N/A

Nonfederal debt, % of total debt of graduates, 2011 – N/A

2010-11 Pell Grant recipients – 70%

Fort Valley State University

Average debt of graduates, 2011 – N/A

Proportion of graduates with debt, 2011 – N/A

Nonfederal debt, % of total debt of graduates, 2011 – N/A

2010-11 Pell Grant recipients – 75%

Kentucky State University

Average debt of graduates, 2011 – $36 293

Proportion of graduates with debt, 2011 – 30%

Nonfederal debt, % of total debt of graduates, 2011 – 0%

2010-11 Pell Grant recipients – 52%

Lane College

Average debt of graduates, 2011 – $8 619

Proportion of graduates with debt, 2011 – 87%

Nonfederal debt, % of total debt of graduates, 2011 – 3%

2010-11 Pell Grant recipients – 88%

Lemoyne-Owen College

Average debt of graduates, 2011 – $19 369

Proportion of graduates with debt, 2011 – 95%

Nonfederal debt, % of total debt of graduates, 2011 – 0%

2010-11 Pell Grant recipients – 80%

Miles College

Average debt of graduates, 2011 – N/A

Proportion of graduates with debt, 2011 – N/A

Nonfederal debt, % of total debt of graduates, 2011 – N/A

2010-11 Pell Grant recipients – 78%

Morehouse College

Average debt of graduates, 2011 – $29 500

Proportion of graduates with debt, 2011 – 80%

Nonfederal debt, % of total debt of graduates, 2011 – N/A

2010-11 Pell Grant recipients – 49%

Paine College

Average debt of graduates, 2011 – N/A

Proportion of graduates with debt, 2011 – N/A

Nonfederal debt, % of total debt of graduates, 2011 – N/A

2010-11 Pell Grant recipients – 74%

Stillman College

Average debt of graduates, 2011 – $30 429

Proportion of graduates with debt, 2011 – 96%

Nonfederal debt, % of total debt of graduates, 2011 – N/A

2010-11 Pell Grant recipients – 79%

Tuskegee University

Average debt of graduates, 2011 – $28 575

Proportion of graduates with debt, 2011 – 91%

Nonfederal debt, % of total debt of graduates, 2011 – 29%

2010-11 Pell Grant recipients – 64%

Source: Project on Student Debt

The HBCU Endowment Feature – Spelman College

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School Name: Spelman College

Median Cost of Attendance: $39 629

Undergraduate Population: 2 170

Endowment Needed: $1 719 898 560

Analysis: Spelman College needs approximately $1.7 billion for all of its undergraduates to attend debt free annually. Spelman College is the number 2 HBCU endowment behind Howard University and closing fast. Its current endowment is actually almost 18 percent of its needed endowment which leads the top endowments. Thanks to its Rockefeller heritage the school continues to be well connected to money outside of the African American community which allows for a faster pace of fundraising. This has its pros and cons of influence within any institution. Demographics are also in Spelman’s favor as African American women have a lower unemployment rate. African American women and men have the smallest gap in income disparity of any group. This is both good and bad since African America as a whole only makes 65 percent of what their European American counterparts make. The college’s recent disbanding of its athletic program should be an interesting dynamic to watch. With a healthy overall student body in the long term it could mean alumni who live longer which leads to larger financial estates, smaller medical bills, and more discretionary finances for donating back to the school. It could truly be the decision that propels Spelman to the number one spot in the coming decades. Yet, Spelman is not without its own headwinds. There are some possible questionable investments within the endowment by way of its investment committee chair that could derail the college if a clear conflict of interest policy is not show to be governing the committee’s decisions. Aside from that potential problem ( it should not be understated however how big of a problem it could become) Spelman is poised to make a serious run at becoming the first billion dollar HBCU endowment and nobody should bet against them (well except Howard).

Gaines & Johnson: A Different World Of A Lesson In HBCUpreneurship & Leadership

By William A. Foster, IV

A man must eat a peck of salt with his friend before he knows him. – Miguel de Cervantes

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Recently Lou Meyers, the man who played Vernon Gaines on A Different World, passed away. As such it made me take some time and reflect on his character from the show. Awhile back I wrote that the characters Dwayne Wayne and Ron Johnson missed a golden opportunity to build a technology company together and instead Ron and Mr. Gaines would open what would be the “typical” show of African American ownership – a club. However, upon reflection even I must admit I missed a golden lesson about something even I experienced while I attended multiple HBCUs and something I believe to be very unique to HBCU culture.

Relationships matter. There is something amazing about the relationship at HBCUs with the students and groundskeepers, janitors, secretaries, cafeteria workers, and others who quietly make the college or university run also commonly referred to as staff. They are as integral and as invested often times in our students’ success as anyone. These unsung heroes provide the little things to HBCU students through their matriculation and was embodied by Mr. Gaines’ character on A Different World. Mr. Gaines was constantly providing words of encouragement and priceless wisdom to all that came through The Pit’s doors. He showed by example hard work and leadership to students who worked under his apprenticeship. They learned lessons from him that no classroom or schoolbook could teach. Oft times providing some of those lessons to faculty as well.

In the case of Ron and Mr. Gaines even I missed something vitally important. Mr. Gaines gave much of his life savings to obtain the club with Ron. It was a huge risk for him personally but what an amazing moment. We so often talk about how we lack access to resources especially financial ones and other expertise but it is often because we are not thinking outside of the box. Many times the resources are right under our nose. Ron and Mr. Gaines partnership was a match made in heaven. Ron was the consummate promoter, a risk taker, and full of youthful arrogance while Mr. Gaines was the steady hand of experience and wisdom along with being an operations guru making sure any ship under his care was going to be run efficiently and on time. Working at an HBCU he also could run anything on a tight budget squeezing every ounce of value out of every dollar. Ron came from a family that probably could have allowed him to bankroll it by himself but odds are he would have failed going alone. His weaknesses were Mr. Gaines strengths and vice versa. But it was years of relationship building between Mr. Gaines watching Ron mature from an immature freshman with promise to a driven young man that allowed their partnership to form in the first place. You see the “ivory” walls that exist between students and staff that exist at many colleges just do not exist at HBCUs and nor should they. Many of our students have parents and family who work in these type of jobs so they have a respect for the work that is tirelessly being done. It allows a wholistic development and humility for our students to be taught by everyone on the campus because everyone has something to offer to our students.

What eventually would come of the Gaines & Johnson partnership? That one club turned into a major food & events management and development company eventually going public on the Ghana Stock Exchange. They would continue to open clubs and eventually find their way into opening casinos, hotels, and restaurants using Hillman architecture, business, engineering, and hospitality graduates. The food & events management division would have the culture of The Pit. Run on a tight ship and on time. Its reputation throughout the industry would be unheralded. They would eventually secure contracts with multiple professional sports organizations and would be lead company managing the Super Bowl. Their development company would ultimately land a development deal in Tokyo, Japan for a major hotel and restaurant with the assistance of fellow alum and Senior Vice President Dwayne Wayne at Kenishewa who uses his influence to secure them favor.

This is the beauty you see on HBCU campuses. That our students and staff most often come from communities and families that allow them to relate to each other and see in each other the reminder of today and promise of tomorrow. Dr. Carter G. Woodson said in Miseducation of the Negro, African Americans would come from a family whose mother had been a maid washing clothing, they would go off to colleges and instead of them coming back and starting a chain of cleaners would rather become highbrow and go off to work in some company as still nothing more than fancy labor with a nice title. Missing an opportunity to truly build on the knowledge of the generation before and create ownership for the family and community. Most often because we were taught that only the “educated” have value instead of understanding that value is in the knowledge whatever it maybe and whomever it maybe coming from.

It is the unique relationship that often times HBCU staff see in the students the optimism for their own families. Something tangible which is why more than any other college or university I have visited during graduation, it is at HBCUs I most often see staff there and afterwards in pictures with students or students going to say those last goodbyes to the cafeteria worker who made sure they ate during finals. Or in the case of Mr. Gaines and Ron building on the expertise and knowledge of both even if it came via different sources. You see in that way on HBCU campuses there are opportunities everywhere and with everyone. There are lessons to be gained and leadership to be viewed from everywhere and everyone. There is much to be gained from the Mr. Gaines’ of HBCU campuses and as such their knowledge, value, and leadership must be respected and valued as much as any on our campuses. Lou Meyers you will be missed but the immortality of Mr. Gaines and all that his character embodied will live on.