Tag Archives: meharry medical college

HBCU Money™ Presents: The George W. Carver 2014’s Top 20 HBCU Research Institutions


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In an ode to the greatest HBCU scientist, we have now named our top HBCU research institution list for George Washington Carver.

HBCUs appear to have taken another step back in the research field according to the latest National Science Foundation data. In 2013, research expenditures for the top 20 HBCUs combined for $451.4 million, while 2014 combines for $445.4 million. This represents a 1.34 percent drop year over year and 2.13 percent drop from two years ago.

  • The top ranked HBCU is Florida A&M University at 199 and the twentieth ranked Alcorn State University is listed at 314 in America’s college research landscape.
  • MEAC leads the way with eight schools versus the SWAC with four.
  • Division II/III schools also comprise two schools on the list.
  • Overall, the 1890 HBCUs are fifty percent of the list highlighting agriculture’s importance role in HBCU research.
  1. Florida A&M University – $41.37 million
  2. Morehouse School of Medicine – $41.86 million
  3. Howard University – $40.77 million
  4. North Carolina A&T State University – $35.05 million
  5. Alabama A&M University – $32.91 million
  6. Jackson State University – $$26.61 million
  7. Tuskegee University – $24.95 million
  8. Charles Drew University of Medicine – $20.69 million
  9. University of Virgin Islands – $20.37 million
  10. Tennessee State University – $20.07 million
  11. Meharry Medical College – $19.00 million
  12. Delaware State University – $17.68 million
  13. Morgan State University – $15.72 million
  14. Fayetteville State University – $14.73 million
  15. South Carolina State University – $13.15 million
  16. Prairie View A&M University – $12.29 million
  17. North Carolina Central University – $11.54 million
  18. Hampton University – $11.17 million
  19. Southern University and A&M College – $10.42 million
  20. Alcorn State University – $10.06 million

TOP 20 COMBINED TOTAL: $445.4 million ($451.4 million)

Additional Notes

The HWCU-HBCU gap for research among top 20 research institutions is 52:1, an increase from 2013’s 50:1.

Top 20 HWCUs Combined: $23.2 billion ($22.5 billion)

Top 20 Average HWCU – $1.1 billion vs. Top 20 Average HBCU – $22.3 million

Top 20 Median HWCUs – $948 million vs. Top 20 Median HBCU – $19.5 million

Source: National Science Foundation

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HBCU Money’s 2015 Top 10 HBCU Endowments


 

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The keyword for  2015’s HBCU endowments – concerning. Two bellwether HBCU endowments, Spelman College and Hampton University, saw negative declines in their endowment’s market value. Outside of Howard University storming ahead at 11.7 percent, no other HBCU endowment saw double digit gains with North Carolina A&T State University missing the mark by 10 basis points. This is a far cry from 2014’s list when 9 out of 10 reported double digit gains. If there is any solace in the numbers and there is not much, it is that the top ten endowments of our HWCU counterparts had no endowments return double digit gains and also saw 2 out of their 10 with declines in market value.

Although there are some notable absences** from our top ten list, it certainly would not change the reality that still only three HBCUs have endowments above the $200 million mark and none have reached the $1 billion plateau, although Howard University, despite its noted financial issues seems to be headed there unabated and without much competition from Spelman College or Hampton University, the only real challengers. John Wilson, president at Morehouse College, in an interview with Harvard Magazine in 2013 noted, “is the need to build endowments; less than $200 million makes you, by definition, unhealthy.” This still remains the case and as a baseline means that 97 percent of all HBCUs are financially unhealthy. Even more concerning is that there seems to be no real plan in place to address this. A canary in the coal mine though is that donations of $1 million or more to HBCUs jumped from one in 2013 to nine in 2014, but donations of the eight and nine figure variety, also known as transformative donations, are still absent at HBCUs.

As always if you do not see your HBCU in the top 10 – DONATE!**

Endowment in millions $000 (Change in Market Value*)

1. Howard University – $659 639 (11.7%)

2. Spelman College – $362 986 (-1.1%)

3. Hampton University – $263 237 (-8.7%)

4. Meharry Medical College – $139 054 (1.5%)

5. Tennessee State University – $51 416 (1.8%)

6. Texas Southern University – $48 684 (4.5%)

7. Virginia State University – $47 432 (4.9%)

8. North Carolina A&T State University – $48 100 (9.9%)

9. Winston-Salem State University – $37 219 (8.5%)

10. University of the Virgin Islands – $34 274 (-9.0%)

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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*Note: 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 FY2013 to FY2014 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.

** Notable exclusions to the list that HBCU Money believes would otherwise make the top ten are Morehouse College, Tuskegee University, Dillard University, and Florida A&M University. Morehouse College, Tuskegee University, and Dillard University have never reported their endowment to NACUBO in the time HBCU Money has been recording its annual top ten endowments. Florida A&M University who was number five last year did not appear in this year’s list from NACUBO.

Additional Notes:
NACUBO Average Endowment – $648 074 (1.7%)
NACUBO Median Endowment – $115 828 (-0.9%)
Top 10 HWCU Endowments combined – $185.4 billion
Source: National Association of College & University Business Officers

2013’s Top 20 HBCU Rankings By Total R&D Expenditures


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HBCUs appear to have taken a step back in the research field according to the latest National Science Foundation data. In 2012, research expenditures for the top 20 HBCUs combined for $455.1 million, while 2013 combines for $450.7 million. This represents a one percent drop year over year. The top 20 HWCU research institutions saw an almost twenty three percent increase over the same period.

  • The top ranked HBCU is Florida A&M University at 197 and the twentieth ranked Virginia State University is listed at 327 in America’s college research landscape.
  • MEAC leads the way with six schools versus the SWAC with four.
  • Division II/III schools also comprise four schools on the list.
  • Overall, the 1890 HBCUs are fifty percent of the list highlighting agriculture’s importance role in HBCU research.
  1. Florida A&M University – $51,149,000
  2. Howard University – $42,789,000
  3. Morehouse School of Medicine – $36,638,000
  4. Jackson State University – $36,264,000
  5. North Carolina A&T State University – $33,994,000
  6. Alabama A&M University – $32,937,000
  7. Meharry Medical College – $22,532,000
  8. Tuskegee University – $21,150,000
  9. University of Virgin Islands – $20,041,000
  10. Charles Drew University – $18,547,000
  11. Delaware State University – $17,295,000
  12. Fisk University – $16,423,000
  13. Tennessee State University – $16,177,000
  14. Morgan State University – $15,475,000
  15. Prairie View A&M University – $13,198,000
  16. South Carolina State University – $13,159,000
  17. Hampton University – $12,461,000
  18. Alcorn State University – $11,315,000
  19. Morehouse College – $9,581,000
  20. Virginia State University – $9,535,000

TOP 20 COMBINED TOTAL: $450.7 million ($455.1 million)

Additional Notes

The HWCU-HBCU gap for research among top 20 research institutions is 50:1

Top 20 HWCUs Combined: $22.5 billion ($18.3 billion)

Top 20 Average HWCU – $1.1 billion ($910 million) vs. Top 20 Average HBCU – $22.5 million ($23 million)

Top 20 Median HWCUs – $969.8 million vs. Top 20 Median HBCU – $17.9 million

Source: National Science Foundation

HBCU Money’s 2014 Top 10 HBCU Endowments


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The keyword for  2014’s HBCU endowments – disappointing. In the past twelve months, HBCU’s top ten endowments added $200 million to its coffers. So why is this disappointing? The S&P 500 over the past year had returns of 13.4 percent. The benchmark by which we measure endowment return success. Given many of the tax and capital advantages that college and university endowments have it takes quite a bit of effort to underperform the market. This year only six out of ten HBCU endowments outperformed the market, while HWCU counterparts clocked in at nine out of ten. This has allowed the institutional wealth gap between top 10 HWCU/HBCU endowments to balloon from 103:1 to 106:1 the past twelve months. 

This year was fairly standard with no real changes except one among the top ten, but what a change it was. The University of the Virgin Islands unseats Winston-Salem State University in the ten spot from last year after an unprecedented change in market value of 48.5 percent. A performance that not only led all HBCUs, but was fifth among the 851 American and Canadian endowments reporting. However, there is still real concern about the lack of HBCUs with at least $100 million endowments. Notable absences are Morehouse and Tuskegee who do not report. Even including these two, it would mean only approximately 7 percent of HBCUs are above this mark. This is concerning because even schools with only a $100 million endowment that achieved a market return of 13 percent leaves the school roughly $6.5 million to potentially to work with. Showing that HBCUs are still highly dependent and vulnerable to tuition revenue. A matter we saw continuously pop up after the Parent Plus Loan debacle that sent many HBCUers home. HBCU endowments should have been there to lessen the blow, but again given 93 percent of HBCUs are at $50 million or less it shows the vulnerability most are facing. The MEAC continues its dominance of the top ten HBCU endowments with four institutions present.

As always if you do not see your HBCU in the top 10 – DONATE!

Endowment in millions $000 (Change in Market Value*)

1. Howard University – $586 104 (14.0%)

2. Spelman College – $367 037 (12.2%)

3. Hampton University – $288 370 (13.5%)

4. Meharry Medical College – $136 975 (9.6%)

5. Florida A&M University – $127 186 (10.3%)

6. Tennessee State University – $50 492 (17.5%)

7. Texas Southern University – $46 577 (10.4%)

8. Virginia State University – $45 145 (18.6%)

9. North Carolina A&T State University – $43 785 (17.3%)

10. University of the Virgin Islands – $38 184 (48.5%)

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.

endowment

*Note: 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 FY2013 to FY2014 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.

Additional Notes:
NACUBO Average Endowment – $616 188 (15.0%)
NACUBO Median Endowment – $112 967 (16.3%)
Top 10 HWCU Endowments combined – $180.3 billion
Top 10 HBCU Endowments combined – $1.7 billion
Source: National Association of College & University Business Officers

The Race To The First Billion Dollar HBCU Endowment: Can Anyone Catch Howard?


By William A. Foster, IV

Whenever I may be tempted to slack up and let the business run for awhile on its own impetus, I picture my competitor sitting at a desk in his opposition house, thinking and thinking with the most devilish intensity and clearness, and I ask myself what I can do to be prepared for his next brilliant move. – H. Gordon Selfridge

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There will be a lot of excitement whenever an HBCU finally reaches the magical one billion dollar endowment plateau. It will be unfounded excitement, but there will be excitement. By now, multiple HBCUs should have achieved billion dollar status, but a mixture of desegregation, poor financial literacy even among our educated alum, and arguably poor communication historically between the institutions themselves and alumni about the endowment and its value have stymied the growth of HBCU endowments. Many have the attitude that their attendance and tuition is all the “giving” they need to give to their HBCU. Some argue bad experiences while during matriculation also has made alumni adverse to giving, but that logic can be a bit dunce and short-sighted. This is because many of the poor experiences that the alum experienced were often a result of poor resources available to train staff better and antiquated software. Alas, this is not to remove the institutions’ responsibility. They certainly deserve their share for not making customer service the number one, two, and three priority. Too many HBCUs still are stuck in mimic mode of their HWCU counterparts in strategic behavior. This includes institutional outreach and advancement where often HBCUs did not and do not pay attention to the cultural differences in giving patterns between African Americans and other groups.

HBCUs in general lack a pool of high-quality and transformative donors. We define the former as “high-quality donors who give consistently and over their lifetime will probably give six to seven figures of donations” and the latter as “donations from transformative donors range from eight to nine figures.” The top ten donations to colleges last year were a combined $2.5 billion with Phil and Penelope Knight, the owners of Nike, putting $500 million in the lap of University of Oregon. HBCUs have missed accessing high-quality donors in the world of hip-hop and entertainment in my opinion at times because they have not wanted the association that comes with many of these artist and their image. Meanwhile, schools like Rice and Harvard University have welcomed the likes of Bun B of UGK and Nas into their wombs, respectively. The latter actually having a fellowship named after him at Harvard. This has cost HBCUs in terms of both finances and publicity. Publicity that is strongly needed to make up for the imbalance in being able to recruit today’s students also known as future donors.

So who is in the running to reach the billion dollar mark? Howard University comes in with the largest endowment at $513 million, which puts it a full $186 million ahead of number two rival Spelman who has a $327 million endowment. In third place, Hampton University with an endowment of $254 million and trailing Howard’s endowment by $259 million. Other notables who are long shots in the race are Meharry Medical College, Florida A&M University, and Tuskegee University with endowments of $124 million, $115 million, and $105 million, respectively. Before anyone ask where is Morehouse and its $130 million endowment, current president John Wilson himself pointed out that in terms of endowment-expense ratio, Spelman is 4:1 and Morehouse is at 1.3:1. Needless to say, while Morehouse needs to desperately build its endowment it appears to have bigger concerns that could leave it too unfocused to be a legit player. These are all of the HBCUs who have at least $100 million endowments. After them the drop off is so acute that it would take a transformative donation for any kind of consideration.

The big 3 of Howard, Spelman, and Hampton all have unique advantages and problems. Howard’s biggest advantage other than being halfway there is the Howard University Endowment Act sponsored by Dan Quayle in 1984. The act currently grants Howard $3.6 million currently in a matching endowment grant. According to Govtrack, “Requires the University, in order to receive such a grant, to deposit in the endowment an amount equal to such grant.” In other words, Howard University is working with a 1:1 match. What is not clear in the bill is if it is limited to specific type of donations from donors. If it does not have limitations, then that is one heck of a weapon. The school is also the only HBCU that is a full-service HBCU meaning it has both a medical school and law school. Something that allows it to produce higher earning alum than its counterparts. Unfortunately, with the good comes some bad. Howard has recently been in the news recently with downgrades by credit agencies for its debt, cutting about 200 staff positions, and public fighting between trustees in the media. Spelman, ranked number two, definitely benefited from what is today valued at a $40 million gift from Bill and Camille Cosby in 1988. An amount equivalent to 12 percent of today’s endowment. You can look at that as glass half full or empty. Full in that they have secured a transformative donation and could again or empty that to this day it still comprises a disproportionate amount of their endowment. On the negative, Spelman has struggled the past few years with their ROI returns for their endowment. The ROI ranking was been the lowest among all top ten HBCU Money endowments in 2013. There seems to be some serious questions about conflicts of interest with Spelman’s board of trustee, Theodore Aronson, who is also the head of their investment committee, his company AJO, and some of Spelman’s investments which have not faired near as well as other HBCUs over the past few years. That could allow Hampton to push pass who trails Spelman by $73 million. Another headwind facing Spelman is the lack of a graduate school which aforementioned in regards to Howard produces higher earning alumni on average. Lastly, Hampton would need to double its endowment or achieve a 100 percent ROI on its current endowment to catch up to Howard – lightning would strike Emancipation Oak twice before the latter would happen. Warren Buffett, considered the greatest investor of all-time, has historically managed around 20 percent annually for the past 45 years. However, given Hampton’s leadership in the form of president William Harvey, who has always kept Hampton fiscally aggressive by limiting the amount it takes from the endowment to 3 percent allowing for greater reinvestment than their peers. It would seem that financial talent and strategy is on Hampton’s side. Hampton is potentially too reliant on its investment strategy and not as much on its alumni development as the school’s giving rate is among the lowest among the big three. Their biggest donation still is from George Eastman, founder of Eastman Kodak, whose $1 million donation in 1924 is valued at approximately $13.8 million adjusted for inflation.

A major factor in all of this and at the heart of it is alumni. An examination of alumni giving rates since 2008 have seen Howard range in the 13-17 percent, Spelman in the 39-41 percent range, and Hampton with 10-16 percent. Percentages can be somewhat misleading giving alumni populations. Howard has by far the largest alumni base of the three schools followed by Hampton and then Spelman. Although the size of the alumni base can be offset by higher giving per alumni, so not too much should be read into these numbers, but it is better to know them than not if you are a development office.

So who do we think we get there first? It is honestly still too early to tell. Given the recent unsettled nature of HBCUs from the private elites to the state institutions to the small liberal arts HBCUs, it seems HBCUs are in a constant proverbial minefield. These three are the head and shoulders favorites, but a transformative donation among any number of HBCUs could change the landscape in a hurry. This could be as they say in the racing world a photo finish.