Tag Archives: morehouse college

2016’s Million Dollar Donations Come Roaring Back For PWIs, But For HBCUs Not So Much


After a timid 2015 where colleges and universities only saw 482 donations and pledges over $1 million, this was the first time since 2012 that less than 500 such donations had been made, donors came roaring back in 2016 with the largest amount of $1 million or more donations ever with 567 such donations and pledges according to The Center of Philanthropy. However, a rising tide does not always lift all boats as HBCUs witnessed. After a banner year in 2014 of nine gifts of $1 million or more that totaled $20.5 million, HBCUs only saw four in 2015 for a total of $7 million. The 2016 numbers are a bit better than the prior year, but not by much.

HBCUs in 2016 received five donations of $1 million or more for a total of $10.5 million. The leading donation comes from Calvin and Tina Tyler (pictured above with Morgan president David Wilson), who gave $5 million to Morgan State University to endow a scholarship for incoming freshmen from the Baltimore area. A gift that should help increase Morgan State’s ability to compete and keep the talent in their backyard at home.

The arms race that is fundraising continues to be an uphill battle for HBCUs who are dealing with a significantly smaller alumni base due to desegregation’s impact a generation ago. African America’s abandonment of most of their own institutional ownership has seen a starvation of institutions that were built to serve African America’s interest almost to the point of extinction. Whether or not a new awakening is on the horizon is more hopeful than optimistic.

To note, Morgan State University becomes the first HBCU since we began tracking in 2013 to appear more than once.

1. Calvin & Tina Tyler – $5 Million
Recipient: Morgan State University
Source of Wealth: UPS

2. James & Marilyn Simons – $2.5 Million*
Recipient: Morehouse College
Source of Wealth: Finance

3. Leonard & Louise Riggio – $1 Million                                                        Recipient: Spelman College
Source of Wealth: Retail

4. Sean Combs – $1 Million*                                                                                    Recipient: Howard University
Source of Wealth: Entertainment

5. Joe Jr. & Kathy Sanderson – $1 Million
Recipient: Alcorn State University
Source of Wealth: Food & Beverage

*Pledge

Source: The Center for Philanthropy

 

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From HBCU To Bank CEO: 4 HBCU Alums Help Lead America’s Black Bank Revival


“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” – John Quincy Adams

What good is a pipeline if it is not used, promoted, strengthened? Going to an HBCU or graduating from is not the beginning or ending of the African American ecosystem, but it is a key part of it. Unfortunately, the data shows that African American intellect and labor (even HBCU graduates) are primarily being used to build up firms owned by other communities. Recent data from the US Census shows that it is likely that less than one percent of African Americans work for an African American owned firm. It stands to reason that the subdata for HBCU graduates working for an African American firm is likely to parallel.

If HBCU business schools are not being trained to run African American firms and the unique path that they face, then what is the point of having them? Goldman Sachs, J.P. Morgan Chase, Bank of America, and Citigroup all have CEOs that attended PWIs (shocker) and even more to the point, attended Ivy League colleges. It would be fair to say that of the almost 7,000 banking institutions in the United States, if you were to subtract out the African American owned banks, that 75 percent of those banks would not be being run by those who went to HBCUs. However, that is exactly what is happening in the African American banking and private sector in general. The vast majority of our institutions operating in isolation, not in conjunction with each other. HBCUs are not banking with, training for, or encouraging their graduates in choir with African American banks and private sector so therefore the institutional leadership at most of our financial institutions and private firms is using a playbook not tailored to our needs.

However, there does appear to some change on the horizon. OneUnited Bank, headquartered in Boston, Massachusetts, and headed by one of the most powerful women in banking Teri Williams, although not an HBCU alum herself is showing herself to be a strong HBCU advocate, and the bank has two HBCUs banking with them in Roxbury Community College (MA) and Florida Memorial University (FL). Something that should lead to many future opportunities for graduates of the two institutions in the future both through internships and employment creating a future pipeline for more HBCU graduates to head up African American owned  firms. So who are the HBCU graduates sitting in African American owned banks c-suites helping lead the current #BankBlack revival that has seen millions of dollars in deposits over the past year?

Dr. Deborah A. Cole; Tennessee State University

As the president of Citizens Bank, headquartered in Nashville, Tennessee and noted as the oldest African American bank still in operation, Dr. Cole has led an impressive increase in the bank’s balance sheet with assets increasing 5.6 percent over 2016, third among the 20 AAOBs.

Ms. Jacquitta Powell Green; Alabama A&M University

A dual role, Ms. Green as she heads up Mobile, Alabama’s Commonwealth National Bank as CEO and Chairwoman of CNB Bancorp, the bank’s holding company. “Mrs. Green is the Vice President of Northside Exchange, which has offered financial services to the unbanked and underserved of the Mobile area for more than 30 years. In 2001, a national tax preparation franchise extended her an offer, and she established Envision Enterprises to offer unbiased and honest tax preparation services.”

Mr. James A. Sills, III; Morehouse College

Mr. Sills heads up one of the most prominent and well known brands among African American owned banks, Mechanics & Farmers’ Bank in North Carolina. The bank has changed its name to M&F Bank a few years ago in an effort to rebrand and attract a young demographic. “Prior to starting his own company in 2007, Mr. Sills was an Executive Vice President of MBNA America Bank (now Bank of America), the largest credit card institution in the world. In this capacity, he served as the Director of Corporate Technology Solutions for the $80 billion US Card Division.”

Ms. Evelyn F. Smalls; North Carolina Central University

Lastly, Ms. Smalls is the President and CEO of United Bank of Philadelphia. The only HBCU graduate heading up a bank outside of the South. “With over 30 years experience in banking and community development, Mrs. Smalls is responsible for the leadership and management of the Bank including setting the direction of the organization, communicating its vision and adapting the culture and operations to achieve success. Her leadership helped transform the Bank’s strategic focus into a “Business Bank” to ensure small businesses have access to affordable loans through the SBA 7A program.”

 

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.

endowment-works-1

*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


undergrad_research

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

The HBCU Endowment Feature – Morehouse College


morehouse

School Name: Morehouse College

Median Cost of Attendance: $37 416

Undergraduate Population: 2 441

Endowment Needed: $1 826 649 120

Analysis: Morehouse College needs approximately $1.8 billion in order for all of its students to attend debt free. One of the most nationally known Historically Black College & University and the only all-male HBCU, one word comes to mind when it comes to its endowment – baffling. This is primarily because while Morehouse College did not appear on HBCU Money’s 2011 top ten endowments, it was only because they did not report their information in time to NACUBO. For all intents and purposes there is no reason to believe that Morehouse College does not have one of the six $100 million plus endowments amongst HBCUs. Unfortunately, if it does have a $100 million endowment it does not appear it is anywhere near its sister school Spelman’s endowment in value which is potentially three times the size of Morehouse’s endowment. This despite having the backing and donations of Ms. Oprah Winfrey. From all reports she is the school’s largest individual donor – or was. There are reports that Ms. Winfrey’s support is waning due to lack of alumni commitment.

Morehouse College should have a multi-billion endowment. Should. It is one of the few HBCUs with a large base of alumni with a sound concentration in the six-figure income range. Morehouse’s new leadership must tackle this inept giving attitude from alumni to become more engaged givers. The school’s downgrade on its financials by Moody will not only have an effect on Morehouse but will reverberate down the stream for other HBCUs. Despite all of this mire the school has the ingredients to not only right the ship but be a legitimate contender for the first HBCU to a $1 billion endowment. It has the alumni, earning power, and prestige but it must fix the disconnect between its alumni and their endowment. If Morehouse was a financial institution it would fall under the “Too Big To Fail” category and while the college is in no danger of closing its doors, it is itself a bellwether institution and must find a way stop resting on its laurels and become the hungriest of the hungry if it is to take its place among the endowment vanguard of HBCUs once again.

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.