Tag Archives: spelman 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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HBCU Money’s 2016 Top 10 HBCU Endowments


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2016 was a rough year for the world, it was even afforded a scary movie trailer, and top ten HBCU endowments were not spared the carnage. Eight out of the top ten HBCU endowments saw negative changes in their market value. The only two to be spared the rod were Meharry Medical College and rising supernova, University of Virgin Islands, who not only led all HBCUs in market value percentage increase, but was second among all American and Canadian institutions reporting in that category. Howard University continues to hold the number one spot and sheer inertia could carry it onto becoming the first billion dollar HBCU endowment. However, after being the star of the top ten last year, Howard finds itself the dog of the show this year with the worst market value percentage performance.

Since breaking into the top ten a few years ago, University of Virgin Islands continues its ascension up the ranks. It is clear they have the special sauce in the islands and if the winds continue in their favor, then the school in Nassau could give HBCUs its sixth endowment over $100 million in short order. Another notable endowment, Texas College with an endowment of only $3.2 million, did see the second highest market change percentage of HBCUs at 6.8 percent.

After a notable absence last year, Florida A&M University, has returned to the list and takes its place as HBCU nation’s fifth endowment over $100 million. This in comparison to 93 of the 799 HWCUs reporting with endowments over the $1 billion mark. Reminding us there is a long way to go before institutional economic equality is achieved.

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 – $685 775  (-8.5%)

2. Spelman College – $346 789 (-4.5%)

3.  Hampton University – $253 814 (-3.6%)

4.  Meharry Medical College – $142 703 (2.6%)

5. Florida A&M University – $113 117 (N/A)

6.  University of the Virgin Islands – $54 968 (60.4%)

7.  Tennessee State University – $50 246 (-2.3%)

8.  Texas Southern University – $48 163 (-1.1%)

9.  North Carolina A&T State University  – $48 074 (-0.1%)

10. . Virginia State University – $45 812 (-3.4%)

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 FY2015 to FY2016 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, and Dillard University. These HBCUs have never reported their endowment to NACUBO in the time HBCU Money has been recording its annual top ten endowments.

Additional Notes:
NACUBO Average Endowment – $640 737 (-2.9%)
NACUBO Median Endowment – $120 330 (-1.3%)
Top 10 HWCU Endowments combined – $182.5 billion
Source: National Association of College & University Business Officers

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

HBCU Money’s 2014 Top 10 HBCU Endowments


piggy-bank-with-glasses-m

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 HBCUpreneur Corner™ – Spelman College’s Morgan France-Johnson & Aesthetically Spoken; Lux Creative


AestheticallySpokenLogo2013 LuxLogo

Name: Morgan France-Johnson

Alma Mater: Spelman College C’07

Business Name & Description: Aesthetically Spoken, LLC is a greeting card line that caters to the LGBTQ community; Lux Creative, LLC is a graphic design company that specializes in branding development and marketing materials.

What year did you found your company? Aesthetically Spoken, LLC – January 2012; Lux Creative, LLC – November 2012

What has been the most exciting and/or fearful moment during your HBCUpreneur career? It’s hard for me to list just one moment, as the entrepreneurial journey is one of the most exhilarating roller coasters I have ever been on! However, if I were forced to pick just one exciting moment for Lux Creative, it would be when I secured a business deal with an international brand while living in Dubai, UAE. This accomplishment affirmed that I am as good as I know and believe I am.

Exciting moments for Aesthetically Spoken are centered around the positive feedback I receive from other members of the LGBTQ community whenever they are able to share the perfect heartfelt greeting. As my overarching purpose is to positively impact lives, knowing that people truly appreciate what I do is very exciting for me.

Fear, like excitement, pokes its head up every once in a while. The most fearful moments always occur before my team and I made our most pivotal changes. The common reminder that fear projects lies in the basic concept of Newton’s Law of Relativity: For every action, there is an equal but opposite reaction. At times, we have found that increased vision is met with low visibility, growth with set backs, and opportunity with void. However, the converse is also true— opposition is met with formidability, loss precedes gain and most importantly fear is met with faith!

What made you want to start your own company? Since I could remember I wanted to “start something.” I distinctly remember at the age of 6, watching a news story with my mother about homelessness in Baltimore and afterwards saying, “Mommy, I’m going to ask God to bless me with money so I can build a place for all of the homeless people to live.”

At 6, I knew my purpose. I didn’t know what that was called back then, but I knew I was going to change the world with my ideas. Spelman cultivated my seed and honed the skills that I would need to make my mark on the world.

Who was the most influential person/people for you during your time in college? Honestly, all of my Spelman Sisters. As a native of Baltimore, I had very few experiences with African-Americans with such diverse perspectives and experiences; they gave me glasses to see a world I never knew existed. I’m forever grateful to Spelman and the women I call “Sister.”

How do you handle complex problems? I spend 20% of my effort on the problem. What’s the real issue here? What other areas does this problem affect? And so on. Then I spend 80% of my effort on the solution. I call mentors, read books, search the web, call my attorney. I do what’s necessary to ensure I’ve neutralized the problem and do my best to prevent any recurrences.

What is something you wish you had known prior to starting your company? This journey isn’t for the faint hearted, expect opposition. Stay vigilant and build your personal networks wisely as you’ll need a support system outside of business to ease the disappointments that will occur along the way.

You are the first HBCUpreneur we have had that is operating not one, but two companies at the same time. As an HBCUpreneur operating multiple companies at the same time and those considering it; what can you tell us about the experience, challenges, and advantages of being a multi-CEO? Balancing the complexities of “normal” life while owning and operating one business is difficult. Two businesses requires an intense level of focus, having great teams in place, and having a good support system. I’m reminded of the Shonda Rhimes Stanford graduation speech in which she stated: when you are in charge of multiple entities, home/multiple businesses, you will have to sacrifice. Everything can’t have your attention 100% of the time. You will mess up. You will make mistakes. But it’s all worth it.

What do you believe HBCUs can do to spur more innovation and entrepreneurship while their students are in school either as undergraduate or graduate students? As a freshman at Spelman, I attended a seminar that prompted me to change my major from Child Development to Economics. That one seminar ultimately changed my entire life. I believe that HBCUs can spur innovation and entrepreneurship by hosting meaningful events that spark creativity while simultaneously educating and supporting individuals who are considering entrepreneurship.

Given the LGBTQ community has an estimated $830 billion in buying power; what are some of the blooming opportunities you believe are on the horizon to HBCUpreneurs looking to provide goods or services to the LGBTQ community in particular? I believe that it is the responsibility of those in the LGBTQ community to assess the market for needs and meet them. Aesthetically Spoken, a card line created specifically for the LGBTQ community was born simply out of need. I found myself in need of a Valentine’s Day greeting card fitting for my same sex significant other. Heteronormative pronouns and insinuations were not fitting; and, as a graphic designer, the inspiration to create an LGBTQ greeting card company derived from this disheartening deficit.

How do you deal with rejection? (chuckle) I keep moving. The year I graduated from Spelman, I joined a network marketing company. (Pre-Paid Legal. Now, Legal Shield) Network marketing is FULL of rejection. We were taught to not take it personally. Once you realize you can take a no and keep moving. You can do anything.

When you have down time how do you like to spend it? Down time?!?! What’s that? I really enjoy spending time with my girlfriend, friends, and family. I enjoy the outdoors, traveling, being active, yet I also enjoy staying in and reading a good book. You’re liable to catch me enjoying life in a variety of ways.

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What was your most memorable HBCU memory? Again, there are so many. Most memorable would have to go to standing on the grass on the Spelman Oval, holding the hands of my other Spelman Sisters and speaking my name to the Universe like so many other Spelman Women before me. It was a spiritual experience. That’s when I knew I had made the right choice.

In leaving is there any advice you have for budding HBCUpreneurs? Don’t quit.