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HBCU Money’s 2021 Top 10 HBCU Endowments

Posted on March 4, 2022 by | Leave a comment

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.

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HBCU Money’s 2020 Top 10 HBCU Endowments

Posted on March 19, 2021 by | 15 comments

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.

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2020 HBCU-Based Credit Unions Directory & Map

Posted on September 16, 2020 by | Leave a comment

HBCU-based credit unions have been largely stagnant in the past four years since our last report in 2016. Assets have increased marginally by $1.7 million or a 1.9 percent. Only the top three HBCU-based credit unions saw increases in their assets of the eleven with all others declining. The asset decline was coupled as well with an acute decline in overall members with an almost 10 percent drop from 2016. With millions of dollars and thousands of potential accounts at their doorstep, it is extremely baffling how these institutions continue to struggle to grow. Especially in an environment of heightened social and economic desire to #BankBlack. The most glaring issue for these credit unions is a lack of FinTech investment. This includes everything from lack of a quality website, debit cards, bill pay, an app, and more. Things that would be considered basics at most financial institutions are still notoriously lacking at HBCU-based credit unions.

In 2012, we published a proposal for a merger among the 11 HBCU-based credit unions (or at the very least an alliance) that would immediately create one of the largest African American credit unions by assets and membership. You can read that here.

  1. Southern Teachers & Parents (LA) – $30.3 million
  2. Florida A&M University (FL) – $22.9 million
  3. Virginia State University (VA) – $10.2 million
  4. Howard University Employees (DC) – $10.1 million
  5. Prairie View (TX) – $3.7 million
  6. Councill (AL) – $2.9 million
  7. Savastate Teachers (GA) – $2.7 million
  8. Arkansas A&M College (AR) – $2.3 million
  9. Xavier University (LA) – $1.7 million
  10. Tennessee State University (TN) – $1.5 million
  11. Shaw University (NC) – $0.4 million

TOTAL ASSETS: $88.7 MILLION

MEDIAN ASSETS: $3.3 MILLION

AVERAGE ASSETS: $8.1 MILLION

TOTAL MEMBERSHIP: 14,953

MEDIAN MEMBERSHIP: 754

AVERAGE MEMBERSHIP: 1,359

Source: National Credit Union Administration

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HBCU Money’s 2019 Top 10 HBCU Endowments

Posted on February 12, 2020 by | 4 comments

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

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HBCU Money™ Presents: The George W. Carver 2017’s Top 20 HBCU Research Institutions

Posted on October 26, 2019 by | Leave a comment

Dr. George Washington Carver (January 5, 1864-January 5, 1943) was an American scientist, botanist, educator, and inventor. Carver is best known for his research into alternative crops to cotton, such as peanuts, soybeans, and sweet potatoes. He wanted poor farmers to grow these alternative crops to aid in the nutrition of farm families and to provide another source of cash income to improve the farmer’s quality of life. Dr. Carver is shown at work at Tuskegee University in September 1938. Photo Courtesy National Archives and Records Administration. r

HBCUs continue to go backwards in the research field according to the latest National Science Foundation data. In 2015, research expenditures for the top 20 HBCUs combined for $425.7 million, while 2017 combines for $424.7 million. Over the past five years, HBCU research expenditures have dropped almost 4.7 percent or a loss of $20.7 million.

  • The top ranked HBCU, Howard University, ranked 203rd and the twentieth ranked HBCU, Virginia State University, ranked 325th among America’s college research landscape.
  • The MEAC maintains their dominance with eight schools versus the SWAC’s four.
  • Division II/III schools also comprise four schools on the list.
  • 1890 HBCUs, land-grant universities, dominate the top twenty with eleven of the top HBCU research universities.
  • All HBCUs combined account for $537.8 million in research expenditures. There are 45 PWI/HWCUs who have research budgets above this amount individually.

Rank. HBCU. Previous Year In Parentheses.

  1. Howard University – $45.8 million ($41.0 million)
  2. Florida A&M University – $37.6 million ($45.4 million)
  3. N.C. A&T State Univ. – $37.4 million ($33.8 million)
  4. Morehouse School of Medicine – $36.9 million ($38.8 million)
  5. Alabama A&M University – $31.7 million ($30.3 million)
  6. Jackson State University – $22.8 million ($23.8 million)
  7. Delaware State University – $20.8 million ($21.3 million)
  8. Tennessee State University – $18.1 million ($19.5 million)
  9. Meharry Medical College – $16.8 million ($14.8 million)
  10. Tuskegee University – $16.5 million ($16.5 million)
  11. Hampton University – $16.6 million ($14.2 million)
  12. Alcorn State University – $16.1 million ($8.2 million)
  13. Charles R. Drew University – $15.7 million ($13.4 million)
  14. Morgan State University – $15.0 million ($15.7 million)
  15. S.C. State University – $14.3 million ($13.1 million)
  16. N.C. Central University – $14.1 million ($12.5 million)
  17. Prairie View A&M University – $14.0 million ($12.6 million)
  18. Xavier University of LA. – $12.4 million ($12.1 million)
  19. Langston University – $11.5 million ($11.2 million)
  20. Virginia State University – $10.8 million ($8.1 million)

TOP 20 COMBINED TOTAL: $424.7 million ($425.7 million)

Additional Notes:

The HWCU-HBCU gap for research among top 20 research institutions is $53:1

Top 20 HWCUs Combined: $22.7 billion ($23.2 billion)

Top 20 Average HWCU – $1.2 billion

Top 20 Average HBCU – $21.2 million

Top 20 Median HWCU – $1.1 billion

Top 20 Median HBCU – $16.5 million

Source: National Science Foundation

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