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HBCU Money’s 2021 Top 10 HBCU Endowments

Posted on March 4, 2022 by | Leave a comment

If there was a short analysis of the 2021 HBCU endowment list it would be this – still not enough. Despite record breaking donations toward HBCUs from Mackenzie Scott and others in 2020-2021, the PWI-HBCU endowment gap among the Top 10 PWIs and HBCUs continues to balloon, a gap that stands at a staggering $121 to $1. This despite a 35 percent increase by the Top 10 HBCU endowments from last year. Simply put, winning the philanthropic “lottery” is not enough and it never will be when it comes to closing the endowment gap. The rabbit never beats the tortoise to put it another way. HBCUs must find a way to find consistent capital infusions over time as opposed to lighting quick one-offs.

The HBCU donor pool is simply too small and too poor (relatively speaking) to close the endowment gap. Without increasing the percentage of African Americans college students who go to HBCUs from 10 percent to 25-30 percent, it does not bode well for HBCUs to be able to close the endowment gap through traditional means. HBCUs and their alumni are going to have to be more creative and must be so expeditiously. While this is the most HBCU endowments we have ever reported with $100 million or greater, increasing from five in 2020 to seven in 2021, PWIs saw an 25 percent increase in the number of endowments over $2 billion going from 55 to 69 and an equally 25 percent rise in the number of endowments over $1 billion going from 114 to 142. This while HBCUs are still waiting for their first billion dollar endowment.

To that point, the race between Howard and Spelman is tightening. Last year’s $334 million lead that Howard held over Spelman has shrunk to $265 million. At one point it seemed a foregone conclusion that Howard would reach the milestone first (The Race To The First Billion Dollar HBCU Endowment: Can Anyone Catch Howard?), that is no longer the case. Howard’s public relations over the past year have not been favorable and while many people say all press is good press – not when you are an African American institution. With Hampton and North Carolina A&T’s departure from the MEAC, no HBCU conference (CIAA, GCAC, MEAC, SIAC, SWAC) is dominating the Top 10 and the list is split 50/50 between private and public HBCUs as well. Arguably this is the most diverse Top 10 HBCU endowment list since we first began publishing, but one thing remains feverishly consistent and that is there is a lot of work to be done to ensure HBCU endowments and therefore the institutions of HBCUs are sustainable and thriving.

HIGHLIGHTS:

  • Top 10 HBCU Endowment Total – $2.7 billion
  • Top 10 PWI Endowment Total – $328.7 billion
  • Number of PWIs Above $2 billion – 69
  • Number of PWIs Above $1 billion – 142
  • HBCU Median – $97.8 million (33.7%)
  • NACUBO Median – $200.4 million (25.8%)
  • HBCU Average – $203.8 million (53.6%)
  • NACUBO Average – $1.2 billion (35.2%)

All values are in millions ($000)*

1. Howard University – $795,203 (11.6%)

2. Spelman College – $530,399 (40.3%)

3.  Hampton University – $379,992 (35.4%)

4.  Morehouse College – $278,073 (77.0%)

5.  Meharry Medical College – $186,943 (19.3%)

6. North Carolina A&T State University  – $157,336 (113.2%)

7. Florida A&M University – $118,635 (24.4%)

8. Morgan State University – $97,783 (162.9%)

9. Tennessee State University – $91,120 (33.2%)

10. The University of the Virgin Islands – $82,863 (23.9%)

OTHERS REPORTING:

*The change in market value does NOT represent the rate of return for the institution’s investments. Rather, the change in the market value of an endowment from FY20 to FY21 reflects the net impact of:
1) withdrawals to fund institutional operations and capital expenses;
2) the payment of endowment management and investment fees;
3) additions from donor gifts and other contributions; and
4) investment gains or losses.

SOURCE: NACUBO

Take a look at how an endowment works. Not only scholarships to reduce the student debt burden but research, recruiting talented faculty & students, faculty salaries, and a host of other things can be paid for through a strong endowment. It ultimately is the lifeblood of a college or university to ensure its success generation after generation.

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HBCU Money™ Presents: 2019’s HBCU Alumni NFL Players & Salaries

Posted on November 25, 2019 by | 2 comments

The 6th annual installment of tracking the earnings of HBCU alumni who are NFL players, the University of Arkansas-Pine Bluff’s Terron Armstead retains the crown with a $5.5 million raise over his 2018 salary.

HBCU Money™ FACTS:

  • HBCU NFL players combine for $43.6 million, an almost 13 percent increase from 2018, when HBCU NFL players earned $38.7 million.
  • South Carolina State University & North Carolina A&T are tied with 4 NFL players each.
  • The SWAC has 9 players versus the MEAC’s 12 players in the league.
  • Average salary for HBCU NFL players is $1.9 million, an increase of $100,000 from 2018.
  • Median salary for HBCU NFL players is $930,000.
  • HBCU players account for 1.4 percent of the NFL’s 32 team active roster spots.
  1. Terron Armstead /UAPB / $15.8 million
  2. Antoine Bethea / Howard / $3.625 million
  3. Chester Rogers / Grambling State / $3.095 million
  4. Joe Thomas / South Carolina State / $2.237 million
  5. Tytus Howard (R) / Alabama State / $2.223 million
  6. Javon Hargrave / South Carolina State / $2.198 million
  7. Rodney Gunter / Delaware State / $1.75 million
  8. Ryan Smith / North Carolina Central /$1.697 million
  9. Darius Leonard / South Carolina State / $1.647 million
  10. Isaiah Crowell / Alabama State / $1.25 million
  11. Antonio Hamilton / South Carolina State / $1 million
  12. Brandon Parker / North Carolina A&T / $930,758
  13. Tarik Cohen / North Carolina A&T / $803,914
  14. Grover Stewart / Albany State / $749.912
  15. Tony McRae / North Carolina A&T / $645,000
  16. KhaDarel Hodge / Prairie View A&M / $570,000 (Tied)
  17. Trent Scott / Grambling State / $570,000 (Tied)
  18. Darryl Johnson / North Carolina A&T / $519,522
  19. Joshua Miles / Morgan State / $513,664
  20. Trent Cannon / Virginia State / $511,096
  21. Danny Johnson / Southern / $510,862
  22. Jamie Gillan / UAPB / $498,333
  23. Da’Lance Turner / Alcorn State / $268,235

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The 2017-2018 SWAC/MEAC Athletic Financial Review

Posted on November 5, 2019 by | 3 comments

In the third report over the past five years since HBCU Money first began reporting the SWAC/MEAC Athletic Financial Review, there have been losses of $130 million, then $147 million, this year they continue their trend of the athletic black hole of almost $151 million loss through athletics with no correction in sight. Almost unfathomable is that nine of the twenty-one schools* in the SWAC/MEAC have athletic budgets higher than their research budgets. It is disheartening at best that these two HBCU conferences can justify their member institutions athletic spending increasing at a faster rate than college inflation for tuition is in America.

If there is a canary in the coal mine, it is that the amount of subsidies put on the back of students this year overall, median, and average decreased for the first time, albeit by a negligible amount. But that canary is barely seen when no matter how you cut it, students are bearing the brunt of generating HBCU athletic revenues. This year’s review shows that approximately 70 percent of HBCU athletic revenues are generated through subsidies. Something to consider when 90 percent of HBCU students graduate with student loan debt.

REVENUES (in millions)

Total: $202.9 (up 7.1% from 2015-2016)

Median: $10.8 (up 6.1% from 2015-2016)

Average: $10.1  (up 6.8% from 2015-2016)

Highest revenue: Prairie View A&M University  $18.6 million

Lowest revenue: Coppin State University  $3.6 million

EXPENSES (in millions)

Total: $212.0 (up 9.2% from 2015-2016)

Median: $10.8 (up 7.1% from 2015-2016)

Average: $10.6 (up 9.3% from 2015-2016)

Highest expenses: Prairie View A&M University  $18.6 million

Lowest expenses: Mississippi Valley State University  $4.1 million

SUBSIDY

Total: $141.5 (unchanged from 2015-2016)

Median: $6.4 (down 18.4% from 2015-2016)

Average: $7.1 (unchanged from 2015-2016)

Highest subsidy: Prairie View A&M University $15.5 million

Lowest subsidy: Mississippi Valley State University $2.0 million

Highest % of revenues: Prairie View A&M University: 83.7%

Lowest % of revenues: Florida A&M University: 34.2%

PROFIT/LOSS (W/ SUBSIDY)

Total: $-9.1 million (down 97.9% from 2015-2016)

Median: $-26,890 (down 1,244.5% from 2015-2016)

Average: $-455,318 (down 97.9% from 2015-2016)

Highest profit/loss: North Carolina A&T State University  $573,062

Lowest profit/loss: South Carolina State University  $-3,560,974

PROFIT/LOSS (W/O SUBSIDY)

Total: $-150.7 million (down 2.4% from 2015-2016)

Median: $-7.0 million (up 10.0% from 2015-2016)

Average: $-7.5 million (down 1.8% from 2015-2016)

Highest profit/loss: Mississippi Valley State University  $-2,041,761

Lowest profit/loss: Prairie View A&M University  $-15,586,904

CONCLUSION: Older alumni’s desire for athletic glory without assessing the cost to obtain it is going to set younger alumni back decades from becoming contributing alumni – if they are ever able to. This shortsighted vision may have ripple effects far beyond the athletic realm. At current, it would take approximately a $3 billion endowment dedicated to athletics to ween the SWAC/MEAC off of these subsidies onto a sustainable path. Steph Curry’s adoption of Howard’s golf team is clearly a step in the right direction of trying to solve this puzzle without burdening students of today and tomorrow. In fact, the top 10 paid NBA players salary for 2019 is a combined $372 million or $160 million above what all of the SWAC/MEAC expenses are combined. Of course these players by no means can or should fund all of HBCU athletics, but it does show that if we can begin to think outside of the box about how to solve this crisis we must do so before it spirals beyond our reach.

Editor’s Note: Howard and Bethune-Cookman are excluded in this report because they are private institutions and their athletic finances were not included in this report or the 2015-2016 review.

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The 2014-2015 SWAC/MEAC Athletic Financial Review

Posted on September 19, 2016 by | 5 comments

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Two years later, students continue to bear a heavy burden for the pursuit of athletics. Our report is a follow up to the 2014 article where the SWAC and MEAC, without student subsidies were losing $130 million annually in athletics in 2013. It is unfortunate to report that the situation has not improved and has in fact gotten worse. HBCUs, especially the SWAC and MEAC, do not have the luxury of boosters like oil tycoon T. Boone Pickens, Nike’s owner Phil Knight, or even Under Armour’s owner Kevin Plank who give millions annually. In the case of Phil Knight, he and his wife have plowed over $300 million into the University of Oregon’s athletic program to bring it to national prominence. An amount that would cover the student fee contributions by SWAC and MEAC students – twice.

Each year the SWAC and MEAC meet for the SWAC/MEAC Challenge sponsored by Disney and this year will meet in the second annual Celebration Bowl, a post-season game to determine the HBCU “national” champion. Sports are an integral part of the college experience this can not be argued, but at what cost? HBCU students, despite HBCUs in general being cheaper than their PWI counterparts, graduate with higher student debt loads. This often delays and/or prevents all together them from becoming future donors back to their schools or boosters to athletics. The lack of African American wealth, both in households and institutions, no doubt plays a huge role. However, the question remains are we sacrificing too much today and forever burdening ourselves tomorrow?

REVENUES (in millions)

Total: $189.5 (up 7.1% from 2013)

Median: $10.2 (up 29.1% from 2013)

Average: $9.5  (up 18.8% from 2013)

Highest revenue: Norfolk State University  $16.1 million

Lowest revenue: Coppin State University  $3.4 million

EXPENSES (in millions)

Total: $194.1 (up 8.6% from 2013)

Median: $10.1 (up 27.8% from 2013)

Average: $9.7 (up 19.8% from 2013)

Highest expenses: Norfolk State University  $16.1 million

Lowest expenses: Coppin State University  $3.9 million

SUBSIDY

Total: $142.5 (up 12.3% from 2013)

Median: $7.9 (up 43.6% from 2013)

Average: $7.1 (up 22.4% from 2013)

Highest subsidy: Norfolk State University $13.5 million

Lowest subsidy: Mississippi Valley State University $2.3 million

PROFIT/LOSS (W/ SUBSIDY)

Total: $-4.6 million (down 142% from 2013)

Median: $-2 000 (in 2013 median was zero)

Average: $-230 071 (down 188% from 2013)

Highest profit/loss: Alabama A&M University  $215 207

Lowest profit/loss: Grambling State University  $-2 044 323

PROFIT/LOSS (W/O SUBSIDY)

Total: $-147.1 million (down 14.4% from 2013)

Median: $-7.8 million (down 34.5% from 2013)

Average: $-7.4 million (down 27.6% from 2013)

CONCLUSION: The SWAC and MEAC have a challenge, but its not on the fields or hardwoods. It is, however, on the income statements and balance sheets of their athletic departments. HBCU b-schools need to be desperately tasked with the assignment of scribing a new business model for HBCU athletics that takes into account alumni wealth (or lack thereof), minuscule payouts by corporations (Celebration Bowl provides roughly $87 000 to each school), and other factors unique to HBCU sports if they are going to lessen the burden on their students who are currently providing 75 percent of the revenues. At current student loan interest rates and traditional investment return rates, the debt burden for just these athletic fees is $1.1 billion over the next 30 years and an investment loss of $4.5 billion over the same period, respectively. These have long-term consequences to families, HBCU endowments, HBCU athletics, ultimately could become cancerous to the very survival of the institutions themselves.

Editor’s Note: Howard and Hampton are excluded in this report because they are private institutions and their athletic finances were not included in this report or the 2013 report. Chicago State, which was included in the 2013 report was excluded in this report.

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