Tag Archives: spelman college

HBCU Money’s 2020 Top 10 HBCU Endowments

For the first time since we began reporting the Top Ten HBCU endowments, an HBCU endowment that we knew should be present but was not reporting is now present – Morehouse College. Hopefully next year we will see Tuskegee University join the fray. This provides a far more accurate picture of the HBCU endowment picture, at least at the top. While many will wonder why the endowments do not appear larger after massive donations that happen in 2020, it should be understood that many donations will not be reflective in the institutions endowment figures until fiscal year 2021 is reported so expect to see massive jumps for many HBCUs in the next calendar year.

However, examining the HBCU endowment world prior Mackenzie Scott’s 2020 philanthropy shows Howard University powering ahead toward becoming the first HBCU endowment to $1 billion. Their lead over number two Spelman extended from $302 million in 2019 to $355 million in 2020. Unfortunately, only four of the ten HBCU endowments saw increases in their endowment market value, while amongst the PWI’s Top Ten endowments all ten saw increases in their market value.* The Top Ten PWI endowments for 2020 combined for $199.8 billion versus $2 billion for the Top Ten HBCU endowments showing an institutional wealth gap of almost $100 to $1.

There is going to be a continued mixed bag of endowment reality among HBCUs. The Have and Have Nots among HBCU endowments has exacerbated and despite the attention during 2020 most smaller HBCUs have yet to secure donations that would secure their future. Even many of those who did are still sitting in a precarious perch. The NACUBO average endowment is over $907 million, an amount that is almost five times the average HBCU endowment and an average that not even Howard has reached yet. This means that while the “lottery” donations from non-HBCU sources is great, it absolutely does not remove the charge from HBCU alumni of being vigilant givers to their institutions. If HBCUs could simply get more of their alumni giving small amounts on a consistent basis that would do wonders for improving endowments. It goes without saying the other reality is that all HBCUs need to increase their student populations so that they are graduating more alumni and therefore more potential donors.

HIGHLIGHTS:

  • HBCU Endowment Total – $2.0 billion
  • Number of PWIs Above $2 billion – 55
  • Number of PWIs Above $1 billion – 114
  • HBCU Median – $95.6 million (-2.62%)
  • NACUBO Median – $165.7 million (0.58%)
  • HBCU Average – $187.7 million (0.13%)
  • NACUBO Average – $903.1 million (1.56%)

All values are in millions ($000)

1. Howard University – $712,410 (2.83%)

2. Spelman College – $377,942 (-3.21%)

3.  Hampton University – $280,598 (-0.69%)

4.  Morehouse College – $157,081 (0.64%)

5.  Meharry Medical College – $156,719 (-1.53%)

6. Florida A&M University – $95,635 (-2.63%)

7. North Carolina A&T State University  – $73,809 (7.82%)

8.  University of the Virgin Islands – $66,894 (-6.68%)

9. Tennessee State University – $63,020 (3.12%)

10. Virginia State University – $56,149 (-2.15%)

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 FY19 to FY20 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.

Internet Services Startup Launched By Three HBCUpreneurs – Who Have Never Met

“Great things in business are never done by one person. They’re done by a team of people.” – Steve Jobs

It is a business story worthy of Hollywood. Mainly because it seems to be a storyline that you only find in movies. However, the story is very real and very powerful. Not only because of its potential, but also because of the possibilities that it presents. Three HBCUpreneurs from three different HBCUs start a business, but have never actually met each other in person. The power of the internet, the power of Twitter and most importantly, the power of the HBCU community.

The company, HBCU Real Estate, is an internet services company that seeks to help the HBCU community (but not limited too) find and use HBCU real estate service providers. Everything from real estate agents, mortgage brokers, interior designers, and more. The founders hope that it will even lead to business creation in the spaces of real estate that the HBCU community may have little to no presence. HBCU Money is aware of only one title company* owned by an HBCU alumnus. HBCU Real Estate’s mission is to help facilitate circulation of the HBCU community’s dollars and keep them in the HBCU community. If successful, it could potentially keep tens of billions of dollars within the HBCU community. The fact that none of the founders have ever met in person makes what they are trying to accomplish even more astounding.

For two years it sat on the proverbial shelf according to organizer, cofounder, and HBCU Real Estate’s Director of Product Development, William A. Foster, IV, a Livingstone College, Virginia State University, and Prairie View A&M University alumnus. “I am a multipreneur and have learned that more hands and brains on deck is almost always a good thing. I needed to meet and find the right people who could understand, compliment, add value, and who could see the potential just as much as I could. Also, I promised myself no more solo projects. When you are involved in as many businesses and organizations as I am, being able to spread the load is vital to success – and sanity.”

Enter Christen Turner, Spelman College and Southern University alumnus, and Marcus King, an alumnus of Prairie View A&M University, both HBCUpreneurs themselves. Ms. Turner, HBCU Real Estate’s Chief Technology Officer, also owns Janelle T. Designs, a graphic designs firm, as well as Forever Femme, an accessories company. Mr. King, HBCU Real Estate’s Chief Marketing Officer, owns Hardly Home, a clothing line that is catered towards travel that was featured on HBCU Money’s The HBCUpreneur Corner in 2015. What does it say to you (King) about the potential of collaboration for HBCUpreneurs that 5 different HBCUs are represented among the 3 cofounders? King answered, “The motto at my alma maters is that “PV produces productive people” and I think that can be said about HBCUs across the board. For years HBCUs have been producing top talent and should continue to do so as we seek to move forward and provide solutions to the problems our community faces.”

The three have followed each other on Twitter for years, although no one can remember for how long. It was towards the end of 2020 that Foster said he approached Turner and King about doing a collaboration or tweeted at them rather. “I sent out a tweet and tagged both of them saying that I need to cofound something with the two of them. Having watched them over the years I knew we would click and have the same kind of work ethic. I just needed to find out if they thought the idea had any legs. If it was not this, it was going to be something else.” The work ethic was confirmed when he said he got an email from Turner on Thanksgiving while he himself was working. Turner further drove the point home of the potential of the moment, “This business will be successful because of two reasons, respect and trust. Despite not having met in an ‘official’ capacity, our partnership seems to have a natural fit to it; almost like pieces of a puzzle. With William’s intuition, he was able to unknowingly add the right people to his team who would each be able to add something different. Whether from a professional standpoint or specific personality traits, we all came in with an immediate respect for each other’s talents and skills. This is why the business will be successful. There’s no questioning; there’s only action, openness, and honesty.” Usually in Hollywood the movie ends with and they lived happily ever after – The End, but in this case it is clear that this is just The Beginning.

For more information, visit http://www.hbcurealestate.com

Morehouse, Morehouse, Morehouse: 2019’s Million Dollar Donations To HBCUs Dominated By The Tigers Of The AUC

“As I grow older, I pay less attention to what men say. I just watch what they do.”

–Andrew Carnegie

2019 proved to be a stellar year for HBCUs and million dollar donations. Since HBCU Money began tracking these donors, 2019 has the most million dollar plus donations with eleven, ten to HBCUs directly and one to an HBCU supporting organization. Also in terms of total value of donations 2019 sets the record with $66.1 million. The one hiccup is that the number of donations is still not representative of the percentage of HBCUs to overall colleges and universities. HBCUs accounted for only 2.2 percent of the million dollar plus donations in 2019 (despite accounting for 3 percent of the nation’s colleges). That being said, the sun shined as bright as it ever has in 2019. There will be plenty of complaints that Morehouse College dominates the list with virtually half of the donations, but that also speaks to alumni not investing enough in their HBCU’s development infrastructure which at most HBCUs is an underfunded and understaffed. Endowing positions in the development office is a great place for alumni to see a strong return on investment of their alumni dollars.

High-quality donors (who give consistently and over their lifetime will probably give six to seven figures of donations) continue to show up for HBCUs, but still not representative of HBCUs presence in America’s higher education landscape. While HBCUs represent three percent of the country’s colleges, HBCUs accounted for only 2.2 percent of the million dollar plus donations in 2019. Tranformative donors (who can change the paradigm of an entire institution with one donation) continue to elude HBCUs all together, while PWI/HWCUs landed 10 donations of $100 million plus in 2019. CalTech, a private research focused university in Pasadena, CA, landed an awe inspiring $750 million donation from Stewart & Lynda Resnick.

The gap this year between top eleven PWI/HWCU gifts totaled $2.1 billion while HBCUs as mentioned totaled $66.1 million or a $32 to $1 ratio.

1. Robert F. Smith (pictured) – $34 million
Recipient: Morhouse College
Source of Wealth: Finance

2. Oprah Winfrey – $13 million
Recipient: Morehouse College
Source of Wealth: Media & Entertainment

3. Eugene McGowan, Jr.  – $4.6 million
Recipient: Morehouse College
Source of Wealth: Education

4. Jeffrey Dean & Heidi Hopper – $4 million
Recipient: Howard University
Source of Wealth: Technology

5. Virginia Howerton – $2.5 million
Recipient: Virginia Union College
Source of Wealth: Consulting

6. Shari Griswold – $2 million
Recipient: Prairie View A&M University
Source of Wealth: Oil

7. William Pickard & Judson Pickard, Jr. – $2 million
Recipient: Morehouse College
Source of Wealth: Food & Beverage, Hotels & Casinos

8. Jon Stryker – $2 million
Recipient: Spelman College
Source of Wealth: Family Wealth

9. Robert F. Smith – $1.5 million
Recipient: Morehouse College
Source of Wealth: Finance

10. Oprah Winfrey – $1.5 million
Recipient: UNCF
Source of Wealth: Media & Entertainment

11. Jose Feliciano & Kwanza Jones – $1 million
Recipient: Bennett College
Source of Wealth: Marketing, Finance

Source: Chronicle of Philanthropy

HBCU Money’s 2019 Top 10 HBCU Endowments

The adjective that best describes 2019 HBCU endowments – uninspiring. HBCU flagship endowments barely moved over the past calendar year. Of all reporting endowments, only The University of the Virgin Islands saw double digit gains in their endowment market value. Since breaking into the top 10 HBCU endowments in 2014, UVI has been on a meteoric rise almost doubling their endowment over the past six years and has become something of a canary in a coal mine.

There is plenty of blame to go around, but the jest of the matter is HBCUs and HBCU alumni associations continue to not do a good enough job of hammering financial and philanthropic literacy among their constituents. This leads to either a lack of investing or no investing at all among HBCU alumni and HBCU alumni associations and therefore a paltry engagement both from an alumni giving rate and alumni giving amounts. Simply put, there are still far too many HBCU alumni and students who do not know what an endowment is or its purpose and it is reflected in the endowments of our institutions.

If there is any solace to be taken from this year’s numbers, it is that HBCU endowments are largely in line with the overall sentiment of America’s college and university endowments. Unfortunately, the median HBCU endowment is less than 44 percent of the overall NACUBO median reporting endowment and HBCU endowments are just barely 18 percent of the NACUBO average reporting endowment.

HIGHLIGHTS:

  • HBCU Endowment Total – $2.1 billion
  • Number of PWIs Above $2 billion – 54
  • Number of PWIs Above $1 billion – 108
  • HBCU Median – $64.8 million (4.07%)
  • NACUBO Median – $149 million (5.02%)
  • HBCU Average – $148 million (4.25%)
  • NACUBO Average – $816.4 million (4.24%)

All values are in millions ($000)

1. Howard University – $692,832 (0.62%)

2. Spelman College – $390,462 (0.27%)

3.  Hampton University – $282,543 (-0.98%)

4.  Meharry Medical College – $159,146 (-0.48%)

5.  Florida A&M University – $98,213 (1.93%)

6.  University of the Virgin Islands – $71,684 (15.83%)

7. North Carolina A&T State University  – $68,459 (7.58%)

8.  Tennessee State University – $61,110 (4.11%)

9. Virginia State University – $57,383 (5.33%)

10.  Winston-Salem State University – $49,755 (7.66%)

OTHERS REPORTING:

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.

Source: NACUBO

The Million Dollar Gift Club: 2018’s Seven Figure Donations To HBCUs Led By Spelman College

An uptick overall, but more importantly a bounce back for HBCUs is how 2018 would be described in the land of the big philanthropy. The Center for Philanthropy reported 497 gifts of $1 million or more to all colleges and universities. After a sluggish few years, HBCUs have seen the most $1 million plus gifts since 2014. In terms of pure dollar amount, this year’s class has bested them all since HBCU Money began tracking the data six years ago with $43 million combined among the HBCUs obtaining gifts.

High-quality donors (who give consistently and over their lifetime will probably give six to seven figures of donations) continue to show up for HBCUs, but still not representative of HBCUs presence in America’s higher education landscape. While HBCUs represent three percent of the country’s colleges, this year only 1.4 percent of the 497 $1m plus donations found their way to an HBCU. Tranformative donors (who can change the paradigm of an entire institution with one donation) continue to elude HBCUs all together, while PWI/HWCUs landed 13 donations of $100 million plus in 2018.

The gap this year between top seven PWI/HWCU gifts totaled $2.94 billion while HBCUs as mentioned totaled $43 million or a $68 to $1 ratio.

1. Ronda E. Stryker & William D. Johnsont (pictured) – $30 million
Recipient: Spelman College
Source of Wealth: Health products

2. Seth & Beth Klarman  – $5 million                                                        Recipient: Spelman College
Source of Wealth: Finance

3. Roland Parrish – $3 million
Recipient: Fisk University
Source of Wealth: Food & beverage

4. Gene & Patsy Ponder – $2 million
Recipient: Wiley College
Source of Wealth: Manufacturing

5. Kenya & Rainbow Barris (tie) – $1 million                                                        Recipient: Clark Atlanta University
Source of Wealth: Entertainment

5. Irvin & Pamela Reid (tie) – $1 million
Recipient: Howard University
Source of Wealth: Education

5. Denzel Washington (tie) – $1 million
Recipient: Wiley College
Source of Wealth: Media & entertainment

 

Source: Chronicle of Philanthropy