Tag Archives: HBCUs

The HBCU Endowment Feature – Kentucky State University

School Name: Kentucky State University

Median Cost of Attendance: $20 447

Undergraduate Population: 2 606

Endowment Needed: $1 065 697 600

Analysis: Kentucky State University needs approximately $1 billion dollars for its entire student body to attend debt free. This is an HBCUs with one of the highest European American populations (20%) so it presents a bit of a conundrum on  strategy. Given HBCUs low alumni donor rate there is not a lot if any information on European Americans that attend HBCUs and their giving pattern either as undergraduates or graduates. Interestingly enough while Kentucky State University strives for “diversity” its counterpart University of Kentucky maintains a 90% European American population and a 5.5% African American population. The endowment at Kentucky State University, currently at $8.8 million, would put 0.8% of its undergraduate population through school debt free annually. It is hard to know what the future of KSU holds as it seems to be trending toward that of past HBCUs like West Virginia State University and Bluefield State College. In a state with a less than 8% African American population and KSU being the only HBCU in Kentucky it makes KSU geographically vital but without a stronger buy in from the African American population in Kentucky its endowment could rest strongly in the hands outside the African American community.

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 – Virginia State University

School Name: Virginia State University

Median Cost of Attendance: $20 966

Undergraduate Population: 5 075

Endowment Needed: $2 128 048 960

Analysis: Virginia State University needs $2.1 billion to allow all of its undergraduates to attend the university debt free annually at its current population and cost of attendance. VSU has both a foundation and university endowment that serve the institution and student body.The university’s endowment is $22.5 million as reported to NACUBO annual survey meaning if all of the endowment was dedicated to scholarship they would have enough for 1.07% of their student body to go to school debt free annually. On the brighter side, VSU is one of the fastest growing endowments in terms of capital and investment returns and with a strong push among alumni could see itself break into the rare air of HBCU endowments with $100 million plus in assets.

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.

Know Your Status – Land, Sea, Space, and Sun Grant HBCUs

Since new developments are the products of a creative mind, we must therefore stimulate and encourage that type of mind in every way possible. – George Washington Carer

Find your HBCU below and be sure to view the notes at the end for important additional information. These statuses allow colleges and universities to access exclusive federal research money that in turn often creates companies and wealth for its alum, the institutions, and communities.

Alabama A&M – Land, Space

Alcorn State University – Land

Bethune-Cookman University – Space

Central State University** – Land

Delaware State University – Land

Florida A&M University – Land, Space

Fort Valley State University – Land

Jackson State University – Sea

Kentucky State University – Land

Langston University – Land

Lincoln University (MO) – Land

Medgar Evers College – Space

Morgan State University – Space

North Carolina A&T University – Land

Prairie View A&M University – Land

South Carolina State University – Land, Sea

Southern University – Land

Tennessee State University – Land

Tuskegee* – Land, Space

University of Arkansas Pine-Bluff – Land, Space

University of District of Columbia – Land

University of Maryland Eastern Shore – Land, Space

University of Virgin Islands – Land

Virginia State University – Land

Notes:

*Tuskegee University is the only private HBCU and one of only three private schools in the nation to hold federal grant status of any sort.

**Central State University is currently applying for land-grant status.

There are nine universities in the country with triple grant status (Land, Sea, and Space). None are HBCUs.

There are two universities in the country with grant status in all four categories. Neither are HBCUs.

HBCU Super Conferences And Profitable Move To Soccer Are A Must

By William A. Foster, IV

“A state without some means of change is without the means of its conservation.” – Edmund Burke

Something we should be clear on. There is no benefit for European American owned media companies to showcase HBCU sports or events. Nor their companies in general to provide more than token sponsorship which we continuously chase. It is not profitable for them socially or economically. The reality is HBCUs are Division 1-AA and Division II schools. HBCUs or not – only the Division 1-A six power conferences (SEC, Big 12, Big Ten, Pac-12, Big East, ACC) will ever be on European American owned channels. We know that even if all the best African American athletes returned to HBCUs they would still not be on television. The reality is it is less about the players on the field and more about the people in the stands. Even in pre-desegregation when HBCUs had the better talent they were not placed on television. You can say this was because of outright racism or you can look at the economics of it then and now. The demographics start with that at almost all of these HWCUs in the six power conferences are predominantly European American. By predominantly I’m speaking of 80% or more. They also have always been able to bring in 50,000 plus at football stadiums and 10,000 plus at basketball consistently. They have larger student population and alumni bases. Something one could argue we could have had by now but a mixture of desegregation and heavy domestic recruitment has limited that growth. The current median net worth of European America is approximately $98,000 versus African America’s approximately $2,200. Given that reality, who would you feature on television? Let me help you even further. In 2007, the buying power of European Americans in California was $1.1 trillion and the buying power for all of African America was approximately $850 billion according to the University of Georgia’s Terry School of Business. That’s just the economics of it. Unfortunately, we sold off BET to Viacom, we are only a minority stake in TVOne, and OWN, while 50% co-owned by Oprah Winfrey, clearly is a channel not focused on catering to the African American demographic.

As such we need to focus on taking a different approach. First, what is clear is that we need to move first in creating super conferences. We can do this by a realignment which is badly needed regardless. Right now there are five HBCU conferences – we need to add a sixth and maybe a seventh. Currently, in the five HBCU conferences there are a total of 55 teams. That means roughly only 50% of HBCUs are in an HBCU conference. Schools like Central State University and Wilberforce University both located in Ohio, Langston University in Oklahoma, and Texas College in Texas are left to fend for themselves in non-HBCU conferences. Why they have not been extended an invite in football hotbeds is both the short sightedness of our conferences; as well in part due to the geographic nature of them which is why I’m suggesting the realignment that is more geographically and financially friendly. It would also do us well to include schools that are not traditional HBCUs like Roxbury Community College in Massachusetts, Medgar Evers in New York, Chicago State in Illinois, and a school without an undergraduate but would be worth the investment to build one in Charles Drew University in California. This would give us a coast to coast presence in every city with a dominant African American presence and allow for the establishment of seven HBCU conferences with fifteen schools in each conference.

Given that football and basketball are still the dominant revenue sports, at the moment, we could then have a twelve team playoff in football to determine the HBCU national football champion and a sixteen or thirty-two team HBCU basketball tournament. The events would be focused in major African American populated cities so that we’d be able to attract a large general African American population who might want to be a part of the event even if they are not attached to a certain HBCU. The cities would be (in order of largest African American populations) New York City, Chicago, Philadelphia, Detroit, Houston, Memphis, Baltimore, Los Angeles, Washington DC, and Dallas. All of which have African American populations 300,000 and above. There of course would be allowances for cities like New Orleans and Atlanta who have a geographical strategic advantages along with a strong cultural connection to HBCUs and African America as a whole to host events which would be approved by the conferences. Ultimately, HBCUs will make the majority of their money with major events not television money. An event planning company owned by the seven conferences will coordinate the HBCU football playoffs and basketball tournament. HBCUs with public access channels and television studios will produce, air, and stream online the events. So while the television money isn’t there the accumulation of social capital would be there. The student-athletes would be on television unlike their Division 1-AA and Division II counterparts and HBCUs would find themselves in front of more African American children which would lay the foundation for improving the paltry HBCU attendance number as it relates to percentage of African Americans who go to college choosing HBCUs. Currently, only 10-12 percent of African Americans who are college eligible are choosing HBCUs which has long-term implications on number of alumni and potential donors.

All of this said, as it relates to football and basketball, it will be a move towards a real investment in a strong soccer infrastructure now not later that can create a paradigm shift in HBCU sport financials and establish an immense global presence in the African Diaspora especially in Africa, Latin America, and Europe which constitutes a population of approximately a billion rabid soccer fans. The African Diaspora’s 4 wealthiest, all based in Africa, are worth a combined $28.1 billion. With Africa being the fastest growing continent economically there is an immense opportunity for recruitment of students, research, donors, sponsorship, and an African Diaspora who was in love with the Ghana Black Stars in the last World Cup. There were even a surprisingly large number of African Americans watching the team from Ghana. The move to soccer would do us well as African Americans as well given the realities of football both endangering African American men’s health and the enormous infrastructure cost that college football requires. Football is an American sport, quite possibly one who is witnessing its apex in American society, and demographics of globalization as well as youth sports, which show soccer has more children participants than football and basketball combined, indicate a shift has already occurred towards soccer. Pro soccer franchises are second only to NFL franchises in terms of average value and that is without a strong presence in America, yet. Forming dominant college soccer franchises lends us the opportunity to not only tap the African American consumer but the African Diaspora consumer.

It is clear the times of us being passive and taking a wait and see what our counterparts are doing has left us in dire straits far too often. We would do well to be out ahead of the curve for once instead of chasing it.

Dwayne Wayne And Ron Johnson Dropped The Ball – HBCUpreneurship

By William A. Foster, IV

The more an idea is developed, the more concise becomes its expression; the more a tree is pruned, the better is the fruit. — Alfred Bougeart

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What if Sergey Brin and Larry page, founders of Google, went to Hillman? Would Google still have been created? Yes. Would they still become billionaires? Probably not. The two men combined are worth an estimated $37.4 billion. Their combined fortunes are greater than Harvard’s endowment, almost 30 times the size of all HBCU endowments, and over 90 times the size of all HBCU research expenditures combined. The last being vital because it was the very thing that allowed the two men, PhD research students at Stanford, to create the search engine that is now a verb. Instead, it could be argued they would end up creating a great new search engine and selling it for pennies on the dollar to Microsoft. Ensuring of course that whichever one (ended up being Dwayne) and wanted to work for said company would have secured themselves employment. Notice, I said very distinctly employment and not ownership.

It is in one of the final episodes of the legendary show “A Different World” Ron Johnson or Ron, the loveable sidekick and best friend of Dwayne Wayne, and ironically the one who has the most entrepreneurial spirit of all the characters on the show comes up with a video game concept that helps children learn. It is no coincidence that him growing up with a father who owned a car dealership inspires his constant risk taking, so the entrepreneurial bug pops up constantly throughout his time at Hillman. One of the more classic Ronpreneurial moments is when he and Mr. Gaines, who ran The Pit at the student center, purchase a nightclub together. An all too typical expression of African-American entrepreneurship and one that has little to no substantive impact. Dwayne Wayne on the other hand is the math genius who seems destined to “succeed” by programming amazing products for the likes of Kenishewa. In fact, in the episode this is exactly what happens as Dwayne takes Ron’s concept and uses his programming skills to bring the game to life. Dwayne tells Ron about bringing the concept to fruition and in the excitement Ron excitedly says “this could be the start of Wayne & Johnson”. For all of Dwayne Wayne’s brains his entrepreneurial IQ never got past zero. He never hesitated to cash in for the short-term payday, subsequently putting his friendship with Ron in jeopardy for not acknowledging it was his idea,  and never once thought about the long-term wealth and institutional impact their own company could have. The brains of these two men would have been the perfect balance that business relationships often need. Ron’s ability to create ideas, generate sales, and risk taking balanced with Dwayne’s ability to bring ideas to life, analytical strategy, and risk aversion would have made for an absolutely powerful business combo. Now, instead of this being the launching of a software company Dwayne Wayne runs with Ron’s concept develops it and simply sells it to Kenishewa and secures a job. Ownership? None. Paycheck? Sure. Bigger picture? Missed.

What could have been? One could ultimately imagine a very successful software company (See Google, Baby Einstein, Electronic Arts, or Microsoft) being born out of the Wayne & Johnson partnership. Years down the line Wayne & Johnson would be giving internships and employment opportunities for Hillman students and donating hundreds of millions back to Hillman for a new research facility, new stadium, higher faculty salaries, and scholarships to reduce Hillman student debt loads. Oh did I mention Wayne & Johnson becomes so successful that they end up acquiring Kenishewa?

No matter a student’s academic department at their HBCU there should be an entrepreneurship class specifically designed for their major and/or department that teaches them how to turn their major into a business that they can take back to our communities and build. From mathematics, engineers, psychology, and beyond every single major should be able to understand how to transform their entity into a business that they own and/or co-own. They should also be able know how to cross-pollinate with other majors. Biology major meets engineering major? What do they create? Behold a bioengineering firm. Mathematics meets sociology? I have no idea but the fact that the conversation is being had leads me to believe the brilliance in our students would come up with an answer and more important a company. We should not be producing labor but ownership as well from our institutions. Our HBCUs too often promote their “successful” students being those who go off and work for large European American companies (making their companies stronger and wealthier) while the masses of their students wait exorbitant amounts of time searching for employment hoping to become an affirmative action quota. It is ownership which will bring down our unemployment rate which is always double the national average, it will help close the wealth gap, provide the wealth to influence the political system in our favor instead of always begging for favor, and pump much-needed infrastructure capital back into our HBCUs and communities so we can compete. We know that when America catches a cold we catch pneumonia. If the latest AP report shows that 50% of recent graduates are unemployed or underemployed what do you think that number is for HBCU recent graduates? It is time for us to do for self as we know our ancestors did in places like Tulsa, Rosewood, and countless other African-American towns across this country. We can compete but we have to compete to be more than just labor. I’ve always said and continue to say capitalism doesn’t reward hard work. It rewards the ownership of hard workers.