Tag Archives: HBCUs

The HBCU Endowment Feature – Alabama State University

Posted on November 19, 2012 by | Leave a comment

School Name: Alabama State University

Median Cost of Attendance: $16 604

Undergraduate Population: 4 743

Endowment Needed: $1 575 055 360

Analysis: Alabama State University needs approximately $1.5 billion for all of its undergraduate students to attend school debt free annually. The school is in direct competition with the University of Alabama at Tuscaloosa. A major advantage point that Alabama State University has is its geographic location in the state’s capital of Montgomery. Being near the political center of a state allows for the engaging of the lawmakers who determine state allocation of funds to the public institutions of higher education. The city’s African American population is approximately 76 000 but with the state’s overall high graduation rate at 69 percent, below the national average of 75 percent, it is not hard to imagine that the African American high school graduation rate is even more abysmal. According to the recent Schott Report the African American male high school graduation rate in Alabama is 42 percent so finding the raw numbers to increase enrollment is going to be a challenge for a state school which tend to be more heavily dependent on in-state students. However, once again being in the state capital which tend to have a strong economic presence presents an opportunity for the school to create a web of opportunities. HBCUs in the deep south face a myriad of social hurdles but especially in a state like Alabama where the University of Alabama is as beloved by the African American community despite an almost negligible presence at the university itself beyond athletics and janitors. It is a social hurdle Alabama State University must shift in order to create the demographic increase needed to be competitive in the long-term that would generate the kinds of donations needed to build a sound endowment.

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.

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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.

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The HBCU Endowment Feature – Central State University

Posted on September 26, 2012 by | Leave a comment

School Name: Central State University

Median Cost of Attendance: $16 470

Undergraduate Population: 2 458

Endowment Needed: $809 665 200

Analysis: Central State University needs approximately $810 million to produce enough annual income to ensure all of its students attend school debt free. The school’s current endowment is $2.1 million or about 0.26% of what would be needed. Marauder nation is one of a small handful of Midwest HBCUs and as such has an opportunity to really dominate their geographical region. Obviously, as one examines one of the hindrances that the school has is a small population especially for a state school. It must look to grow itself especially on the graduate level where research can be leveraged to build the African American economy in Ohio and Midwest to make it a vital cog in region’s overall development. Its only real competition in that arena is Chicago State University the other major Midwest HBCU with a graduate school proponent. Central State University is a rural school however and should continue to focus its efforts there and dominating opportunities through agriculture.  In a state so vital to politics especially the “big” one that happens every four years the school would do well to find ways to leverage the attention the state receives during this period as a means of bringing fundraising attention and building political capital beyond its state borders. It will take a much stronger endowment than what it currently operates with, which is will below the median HBCU endowment of $6 million. A school with much promise, notable but underused alumni, and important geography is definitely one to watch in the coming decade.

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.

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The HBCU Endowment Feature – Prairie View A&M University

Posted on September 11, 2012 by | Leave a comment

School Name: Prairie View A&M University

Median Cost of Attendance: $11 505

Undergraduate Population: 6 931

Endowment Needed: $1 594 823 040

Analysis: Prairie View A&M University needs approximately $1.5 billion for all of its students to attend debt free annually. Prairie View A&M University is located in Texas which is one of three states that have HBCUs underneath “systems” with Maryland and Florida being the other two. Prairie View A&M is underneath the Texas A&M University system which itself controls the tenth largest endowment in America at almost $7 billion. The upside of being in a system of a larger university is the financial stability provided but in exchange for essentially a complete loss of sovereignty in key strategic areas. As such it makes it complicated to know what their exact endowment is within the university since oft times money is pooled together and to complicate it even more the Texas A&M University system potentially charges its satellite schools a management fee to hold their money allowing them to skim off any donation that comes into the university. U.S. News reports Prairie View A&M’s endowment to be in the neighborhood of approximately $48 million which is 0.68% of Texas A&M’s endowment for perspective. Historically, the relationship  between Prairie View A&M and Texas A&M has always been tumultuous and when money is involved it only complicates it even further. It has taken Prairie View A&M University alumni over 133 years to establish an independent foundation to manage the assets of its alumni. A foundation whose purpose and strategy still seem very unclear if one visits their website or talks to any alumni. The future of Prairie View A&M’s endowment which could use some clarity will ultimately rest in decisions about that endowment being made in Prairie View, Texas or continuing to be made in College Station, Texas. It is hard to imagine your competition having your best interest at heart.

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.

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The HBCU Endowment Feature – Hampton University

Posted on September 4, 2012 by | Leave a comment

School Name: Hampton University

Median Cost of Attendance: $29 074

Undergraduate Population: 4 361

Endowment Needed: $2 535 834 240

Analysis: The university currently needs $2.5 billion for all of its students to attend debt free annually. Hampton’s endowment is the 3rd largest among HBCUs, 244th in the nation, and one of only five to grace the rare air of the HBCU $100 million endowment club. Hampton’s leadership has maintained an aggressive approach to its endowment which has allowed an immense growth over the years and puts it in prime position to challenge Howard and Spelman in the race to become the first billion dollar HBCU endowment. Last year the endowment underperformed with a 12.8% return against the national average of 17.8% and median of 20.0% but expect to see this group come back in a strong way. Expected economic headwinds withstanding in 2013 the university will continue to be an endowment leader among HBCUs because of its forward thinking in deploying capital.

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.

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