Tag Archives: spelman college

The Love Is GONE: 2022’s HBCU Million Dollar Gifts

We must accept finite disappointment, but never lose infinite hope. – Martin Luther King, Jr.

Arguably, there are not enough donations in 2022 to even warrant an analysis but we are going to give it a try. The acute analysis is that HBCUs and alumni are going to have to prioritize creating wealthier alumni and using their alumni associations to leverage more aggressive investment vehicles which may otherwise be out of bounds for the institutions themselves. It also speaks to giving real thought to policies and strategy that can assist in that wealth creation. Reducing student loan debt loads, reducing time spent in maturation, increasing financial literacy requirements, and more need to be among serious conversation in order to help alumni get on the footing to wealth in both speed and probability. Years like this have been far too many in the midst of also battling underfunding by state and federal government. Not to mention the outright assault PWIs have launched in recent decades of trying to out HBCU HBCUs for African Americans and other minority groups. Of the three companies (pictured above) responsible for the wealth that allowed these individuals to give their Million Dollar Gifts – none were African American owned firms and their combined market caps were over $600 billion – an amount that is almost 40 percent of African America’s entire buying power. Something else that needs to be strongly considered in the wealth development conversation among alumni and administrations. Why are our alumni not creating more firms that can lead to transformative wealth and what can we do to assist?

Overall donations to all colleges and universities were down significantly in 2022 dropping under 300 Million Dollar Gifts given for the first time since 2010. This seems to be a fairly direct correlation to the economy and stock market’s rough 2022. Given that most wealthy donors have major investments tied to business ownership and investments and the Federal Reserve putting forth monetary policy in 2022 that many argued slammed the brakes on the stock market, it is no surprise that wealthy donors deemed themselves quite skittish. And per usual, when America/PWIs get a cold, then African America/HBCUs get pneumonia as seen by only 3 Million Dollar Gifts finding their way to HBCUs. None from HBCU alumni. The median donation was 2 to 1 in terms of donor value and the average donation was 4.5 to 1 in terms of donor value between PWI MDGs and HBCU MDGs. 2022 also provided the very first $1 billion donation to a college or university with Stanford University receiving a $1.1 billion pledge from John and Ann Doerr (both whom are Rice University alumnus).

This is a concerning trend going into uncertain financial times for the U.S. economy in particular. Colleges overall do tend to pick up more students during recessionary times with people losing jobs many see it as an opportunity to go to school or back to school. Unfortunately, tuition revenue is already too much of what HBCUs rely heavily upon and those new students are not likely in any position to give Million Dollar Gifts in the near future. HBCU philanthropy as it pertains to Million Dollar Gifts operates largely on a lottery like reality both relying on hope and depending on those outside of the culture and outside the alumni bases. With the changing sands of higher education shifting beneath our feet the resources to see tomorrow grow urgent with every passing day.

$1 Million Plus Donations To All Colleges: 275

$100 Million Plus Donations To All Colleges: 14

$1 Million Plus Donations Value To All Colleges: $7.1 Billion

$1 Million Plus Median Donation To All Colleges: $10.0 Million

$1 Million Plus Average Donation To All Colleges: $25.9 Million

$1 Million Plus Donations To HBCUs: 3

$100 Million Plus Donations To HBCUs: 0

$1 Million Plus Donations Value To HBCUs: $17.0 Million

$1 Million Plus Median Donation To HBCUs: $5.0 Million

$1 Million Plus Average Donation To HBCUs: $5.7 Million

HBCU Percentage of Donations To All Colleges: 1.1%

HBCU Percentage of Donation Value To All Colleges: 0.2%

1. Arthur M. Blank (pictured) – $10.0 million
Recipient: Spelman College
Source of Wealth: Home Depot

2. Reed Hastings & Patty Quillin – $5.0 million
Recipient: Tougaloo College
Source of Wealth: Media & Entertainment

3. Kenneth Chenault & Kathryn Chenault   – $2.0 million
Recipient: Howard University
Source of Wealth: Education

Source: Chronicle of Philanthropy

UNPRECEDENTED: MacKenzie Scott Transforms HBCU Endowments With A Flurry Of Million Dollar Gifts In 2020

Guilt: the gift that keeps on giving. – Erma Bombeck

The year of George Floyd’s death and the European American guilt that accompanied it can be argued was the catalyst that led to the largest flurry of million dollar plus donations to HBCUs ever seen and it was led almost solely by one woman – MacKenzie Scott, the quietly known co-founder of Amazon who has emerged as a powerhouse in the world of philanthropy. Of the reported 37 donations of $1 million or more as reported by the Chronicle of Philanthropy to HBCUs, Ms. Scott is responsible for 22 of them. Her donation to Prairie View A&M University was the largest in the school’s history and the largest ever to a public HBCU. Questions of where the money actually ends up and who is managing it given Prairie View’s relationship to Texas A&M are worth investigation by PVAMU alumni. All the same, HBCU endowments began 2020 standing at approximately $2.1 billion combined. 2020’s million dollar plus donations to HBCUs are equivalent to roughly 33 percent of that – in one year. To put in perspective, these donations to HBCUs in 2020 were greater than Howard University’s 150 plus year old endowment and would be the equivalent of someone donating approximately $15 billion to Harvard’s endowment, which Ms. Scott actually could do. Again, unprecedented.

We have expanded our review of the data collected to include more information regarding those major donations to HBCUs as well as their presence in the overall landscape of major donations to all colleges and universities. Are HBCUs getting their share? Although HBCUs make up three percent of the United States higher education ecosystem, they do not tend to receive three percent of the philanthropic donations or value. This year breaks the mold with HBCUs receiving over 11 percent of the major donations and over 15 percent of the major donation value. Unprecedented is putting it mildly. While this infusion is beyond needed and could not come at a better time as many higher education institutions across the country are having real questions of future and long-term fiscal viability, those with well position endowments have far less to worry about in their ability to have the resources necessary to pivot in an ever changing education landscape. Despite this landslide of donations, there are still no HBCUs with a $1 billion endowment or more. Howard University is still leading the way and looking like the inevitable first, but after Howard and Spelman, there are a myriad of questions and concerns as to the endowment health of every other HBCU.

Despite no African American having the wealth to give at the scale of MacKenzie Scott, it still begs the question of where are the African American wealthy in making major donations to HBCUs on a more consistent and sustainable basis. Only 4 of the 37 donations on 2020’s list come from African American families. George Floyd’s death was clearly a catalyst for much of this giving to African American institutions in 2020, but relying on Black death as a means to spur major giving is morally problematic and acutely unsustainable. There is no reason that this list every year is not made up of predominantly African Diaspora and African American households. For reasons that are complex though, that has still yet to happen. It is also worth noting which schools received donations. While the usual suspects of Morehouse College, Spelman College, and Howard University are there, one-third of the donations went to public HBCUs whom rarely find themselves in the philanthropic spotlight. Lesser known, but just as important HBCUs like Claflin University, Lincoln University (PA), and Xavier University (LA) also showed up. A vital need is for the smaller HBCUs to receive major gifts, HBCUs like Texas College, Florida Memorial University, Virginia University at Lynchburg also badly need to receive major gifts to shore up their fiscal futures. African American households must be the one to lead that charge if major giving to HBCUs is to be burning bright tomorrow and not just a firecracker today.

$1 Million Plus Donations To All Colleges: 329

$100 Million Plus Donations To All Colleges: 7

$1 Million Plus Donations Value To All Colleges: $4.7 Billion

$1 Million Plus Median Donation To All Colleges: $6.0 Million

$1 Million Plus Average Donation To All Colleges: $14.4 Million

$1 Million Plus Donations To HBCUs: 37*

$100 Million Plus Donations To HBCUs: 0

$1 Million Plus Donations Value To HBCUs: $716.7 Million

$1 Million Plus Median Donation To HBCUs: $20.0 Million

$1 Million Plus Average Donation To HBCUs: $19.4 Million

HBCU Percentage of Donations To All Colleges: 11.2%

HBCU Percentage of Donation Value To All Colleges: 15.2%

1. MacKenzie Scott (pictured) – $50 million
Recipient: Prairie View A&M University
Source of Wealth: Technology, Retail

2. MacKenzie Scott – $45 million
Recipient: North Carolina A&T State University
Source of Wealth: Technology, Retail

3. Reed Hastings & Patty Quillin  – $40 million
Recipient: Morehouse College
Source of Wealth: Technology

4. Reed Hastings & Patty Quillin – $40 million
Recipient: Spelman College
Source of Wealth: Technology

5. Reed Hastings & Patty Quillin – $40 million
Recipient: United Negro College Fund
Source of Wealth: Technology

6. MacKenzie Scott – $40 million
Recipient: Morgan State University
Source of Wealth: Technology, Retail

7. MacKenzie Scott – $40 million
Recipient: Norfolk State University
Source of Wealth: Technology, Retail

8. MacKenzie Scott – $40 million
Recipient: Howard University
Source of Wealth: Technology, Retail

9. MacKenzie Scott – $30 million
Recipient: Virginia State University
Source of Wealth: Technology, Retail

10. MacKenzie Scott– $30 million
Recipient: Winston-Salem State University
Source of Wealth: Technology, Retail

11. MacKenzie Scott – $30 million
Recipient: Hampton University
Source of Wealth: Technology, Retail

12. MacKenzie Scott – $25 million
Recipient: Alcorn State University
Source of Wealth: Technology, Retail

13. MacKenzie Scott – $25 million
Recipient: Bowie State University
Source of Wealth: Technology, Retail

14. MacKenzie Scott  – $20 million
Recipient: Claflin University
Source of Wealth: Technology, Retail

15. MacKenzie Scott – $20 million
Recipient: Delaware State University
Source of Wealth: Technology, Retail

16. MacKenzie Scott – $20 million
Recipient: Lincoln University (PA)
Source of Wealth: Technology, Retail

17. MacKenzie Scott – $20 million
Recipient: Tuskegee University
Source of Wealth: Technology, Retail

18. MacKenzie Scott – $20 million
Recipient: Xavier University (Louisiana)
Source of Wealth: Technology, Retail

19. MacKenzie Scott – $20 million
Recipient: Morehouse College
Source of Wealth: Technology, Retail

20. MacKenzie Scott – $20 million
Recipient: University of Maryland-Eastern Shore
Source of Wealth: Technology, Retail

21. MacKenzie Scott – $20 million
Recipient: Spelman College
Source of Wealth: Technology, Retail

22. MacKenzie Scot– $15 million
Recipient: Clark Atlanta University
Source of Wealth: Technology, Retail

23. MacKenzie Scott – $15 million
Recipient: Elizabeth City State University
Source of Wealth: Technology, Retail

24. Anonymous Donor – $10 million
Recipient: Prairie View A&M University
Source of Wealth: N/A

25. Bruce Karsh and Martha Karsh  – $10 million
Recipient: Howard University
Source of Wealth: Finance

26. Seth Klarman and Beth Klarman – $10 million
Recipient: Spelman College
Source of Wealth: Finance

27. MacKenzie Scott – $6 million
Recipient: Tougaloo College
Source of Wealth: Technology, Retail

28. MacKenzie Scott – $5 million
Recipient: Dillard University
Source of Wealth: Technology, Retail

29. Oprah Winfrey – $2 million
Recipient: Tennessee State University
Source of Wealth: Media & Entertainment

30. Matthew Cullinan and Anna Reilly – $1.7 million
Recipient: Winston-Salem State University
Source of Wealth: Education

31. Jim Murren and Heather Murren – $1 million
Recipient: Howard University
Source of Wealth: Finance

32. Charles Butt – $1 million
Recipient: Prairie View A&M University
Source of Wealth: Retail

33. Charles Barkley – $1 million
Recipient: Miles College
Source of Wealth: Entertainment

34. Kenneth Chenault and Kathryn Chenault – $1 million
Recipient: Morehouse College
Source of Wealth: Finance

35. Joan Johnson – $1 million
Recipient: Spelman College
Source of Wealth: Retail

36. Frank Baker & Laura Day  – $1 million
Recipient: Spelman College
Source of Wealth: Finance

37. Charles Barkley – $1 million
Recipient: Tuskegee University
Source of Wealth: Entertainment

Source: Chronicle of Philanthropy

*Michael Bloomberg’s pledge of $100 million in 2020 to the 4 HBCU medical schools was not included in our list which was sourced strictly from the Chronicle of Philanthropy.

HBCU Money’s 2021 Top 10 HBCU Endowments

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.

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