Tag Archives: tuskegee university

Locked Out: HBCUs Only Receive 3 Of The 460 Donations Of $1 Million Plus To Colleges In 2017

If charity is any economic indicator, then wealthy donors have retrenched their nervousness about the economy as a whole. Two years ago, $1 million dollar plus donations to colleges and universities were under 500 such charitable gifts for the first time since 2012. Last year, that was reversed to almost 600, but the reversal was not to be sustained in 2017 where once again less than 500 donations – only 460 to be exact were of the $1 million dollar plus variety to colleges and universities. The largest donation made its way to UC-San Francisco to the tune of $500 million by the Hellen Miller Foundation whose source of wealth stems from real estate. For perspective, this donation is an amount equal to twenty-five percent of all HBCU endowments combined.

For HBCUs, the trend has been a constant struggle to get back to 2014 when nine such donations were made to our institutions. Since that time, not more than five have occurred in a given year in the past three years and this year marks the lowest number with only three donations of $1 million plus. That HBCUs can not even garner three percent (the number that HBCUs represent as a total of all American colleges and universities) marks a continued challenge in the financial arms race that is happening among higher education institutions as the shifting landscape of the 21st century unfolds. Without the transformative donations, HBCUs remain reliant on tuition revenue and at risk in competing for talent both among faculty, students, research, and infrastructure. What is the solution to this philanthropic Rubik Cube? As with most problems, there is more than one solution, but there is no doubt those solutions need to come fast and soon.

If you need perspective on just how large the gap is between the largest donations to HWCU/PWIs and HBCUs is – the top three PWI donations totaled $969 million. In contrast, HBCUs top three donations totaled $3.7 million, an amount that is 262 times less.

1. Orlando L. Clark (pictured above) – $1.59 Million
Recipient: Tuskegee University
Source of Wealth: Health care

2. Antonio Clayton – $1.1 Million
Recipient: Southern U. System Foundation
Source of Wealth: Law

3. George & Jill Hamilton – $1 Million                                                        Recipient: North Carolina Central University
Source of Wealth: Chemicals

Source: The Center for Philanthropy

 

HBCU Money™ Presents: The George W. Carver 2015’s Top 20 HBCU Research Institutions

HBCUs continue to go backwards in the research field according to the latest National Science Foundation data. In 2014, research expenditures for the top 20 HBCUs combined for $445.4 million, while 2015 combines for $425.7 million. This represents a 4.4 percent drop year over year and 5.5 percent drop from two years ago.

  • The top ranked HBCU is Howard University at 197 and the twentieth ranked Xavier University of Louisiana is listed at 326 in America’s college research landscape.
  • MEAC maintains the way with eight schools versus the SWAC dropping to three after Alcorn State University gave way to XUL.
  • Division II/III schools also comprise four schools on the list, an increase from two in 2014.
  • 1890 HBCUs, land-grant universities, make up for seven of the twenty top HBCU research universities.

Rank. HBCU. Previous Year In Parentheses.

  1. Howard University – $47.3 million ($40.7M)
  2. Florida A&M University – $46.5 million ($46.4M)
  3. North Carolina A&T State Univ. – $35.2 million ($35.0M)
  4. Morehouse School of Medicine – $33.4 million ($41.9M)
  5. Alabama A&M University – $29.2 million ($29.5M)
  6. Tuskegee University – $25.7 million ($24.9M)
  7. Jackson State University – $23.9 million ($26.6M)
  8. University of the Virgin Islands – $20.6 million ($20.4M)
  9. Tennessee State University – $20.0 million ($20.1M)
  10. Delaware State University – $16.0 million ($17.7M)
  11. Hampton University – $14.9 million ($11.2M)
  12. Charles Drew University of Medicine – $14.1 million ($20.7M)
  13. Meharry Medical College – $14.0 million ($19.0M)
  14. Fayetteville State University – $13.7 million ($14.7M)
  15. Morgan State University – $13.6 million ($15.7M)
  16. Prairie View A&M University – $13.1 million ($12.3M)
  17. South Carolina State University – $12.6 million ($12.7M)
  18. North Carolina Central University – $12.4 million ($11.5M)
  19. Clark Atlanta University – $9.9 million ($9.2M)
  20. Xavier University of LA. – $9.6 million ($9.3M)

TOP 20 COMBINED TOTAL: $425.7 million ($445.4 million)

Additional Notes

The HWCU-HBCU gap for research among top 20 research institutions is 50:1

Top 20 HWCUs Combined: $21.1 billion ($23.2 billion)

Top 20 Average HWCU – $1.1 billion vs. Top 20 Average HBCU – $21.3 million

Top 20 Median HWCUs – $990 million vs. Top 20 Median HBCU – $15.5 million

Source: National Science Foundation

2017 National Real Estate Preview: HBCU Alumni Real Estate Agents Look Ahead To The New Year

An HBCU alumna and ally who are now prominent real estate agents sit down and talk with us about what to potentially expect for the year ahead in the real estate market covering coast to coast.

Tiffany Curry (top left) – A Texas Southern University alumna who now works for Berkshire Hathaway Home Services Anderson Properties in Houston, TX.

Kimberly C. Lehman (top right) – An HBCU ally who is married to a Hampton graduate and now owns and runs KC Lehman Realty as a division of John Aaroe Group in Los Angeles, CA.

What do you believe the rate hike in December by the Federal Reserve may do to the coming year of real estate?

TC: I believe the rate spike will motivate buyers that have been on the fence. I think people will fear the rates may continue to rise and that we will see an increase in buyers purchasing homes. Rents are at record highs. It is still less expensive to own vs. lease.

KC: If the interest rates rise in the way we expect, it will impact how much buyers currently in the market can afford. As such, home values should level out, but many buyers will continue to be priced out.

Tell us something that makes you optimistic and pessimistic about the 2017 real estate market?

TC: I’m excited that the 2017 market has already shown positive signs of movement. I currently have clients who are ready to sell and purchase new homes in the first quarter of 2017. I expect my business to double in the 2017 year which is remarkable in the current marketplace. Consumers are seeing value in homeownership and are trading their homes for more space or better locations.

KC:  Optimistic: In Southern California, there is no shortage of buyers, and therefore opportunities for business continues to grow. If values level out, that might balance out the supply and demand which also equals more opportunities for business.

Pessimistic: Uncertainty of our new administration has sellers that ordinarily would sell right now holding tight. Also current home values will cause some buyers who are unwilling to compromise on property location and/or condition to drop out of the game.

Where do you see the most opportunity for real estate investors in your market for 2017?

TC:  In Houston, we have a diverse and growing economy. I see development as an excellent place for investors. Land purchases should be key for investors as the Houston population will nearly double by 2040. Land will become scarce and is a great opportunity for someone that can buy and hold.

KC: Southeast Los Angeles if they are smart. They missed the boat on Inglewood.

Companies like Redfin, Zillow, and others are disrupting the traditional real estate market. How are you seeing their presence influence the real estate market?

TC: Houston is a rare marketplace where we have our own local consumer public facing website, har.com. HAR.com is the only site in the US where Zillow, Realtor.com and others do not hold prominent market share. This has enabled brokers and agents in the market to maintain their presence without the need for an outside third party. Redfin however has come into the marketplace as they offer a discount service. Consumers who want to save on commissions are using their services however it is in line with the traditional discount brokerages that would have attracted this type of consumer. Although they are capturing consumers they still are a very small impact in our local market as most consumers still want the guidance and expertise of a REALTOR that has time to handle their needs rather than one that is focused on transactions.

KC: Buyers and sellers are relying on these sites to educate them about the real estate process and home values. As it relates to the latter, none of these sites are truly accurate. Redfin in particular has gotten their own market share of listings and buyers through their site and their agents are in direct competition with those of us at traditional brokerages. They aren’t always knowledgeable of the areas they are tied to via the site. I’ve heard horror stories!

On the upside, Zillow reviews are liquid gold to agents in the field.

Since reaching its all-time high of 49.1 percent in 2004, African American homeownership has now fallen to an all-time low of 41.1 percent as of third quarter 2016, an almost 20 percent decline. What do you believe can be done in the foreseeable future to reengage the African American consumer?

TC: I believe the African American consumer must be reeducated on the value of homeownership. Homeownership for most Americans is their primary source of wealth and assets. I believe our communities, churches and social groups must put more emphasis on the value of owning the land beneath your feet. As one of the largest groups in consumer spending we must do a better job of prioritizing what we spend our monies on. Material items that depreciate are not the key to wealth. Laying the foundation to a solid financial future for our children and their children’s children are what we must focus on. Building and maintaining our communities by owning what is in them is key.

KC: African Americans need to pool resources in order to compete with the current buyers in the market. Often, our community looks to FHA, NACA, CALHFA and other government programs to help us – but unless we are shopping in low income areas, we can’t compete with the cash offers elsewhere. If we work together and create real estate investment groups we can began to establish potential generational wealth for our heirs.

Thank you for participating ladies and we look forward to your 2018 forecast! To reach these agents please click their names to be directed to their websites.

Tiffany Curry – Houston, TX

KC Lehman  – Los Angeles, CA

 

The Forgotten Mission – HBCUs Account For Less Than One Percent Of America’s College Research Spending

A man wearing black pants, a white shirt and black shoes, writing on the wall. He is drawing a line of gears and writing business-related words above and below the gears

“Many think that the principal mission of universities is to transmit knowledge; they miss the key point that teaching and research are inseparable. American universities must continue to discover new kinds of knowledge and new ways of thinking.” – Dr. Eric Kandel

In 1896, Booker T. Washington invited George Washington Carver to head Tuskegee Institute’s Agriculture Department. For almost five decades Carver would set himself in stone as the greatest scientist and research ever to grace the halls of an HBCU. To this day he and his accomplishments are the measuring stick by which all HBCU research and scientists are measured. Yet, the fever by which Tuskegee invested in Carver and his research seems like a distant memory in HBCU lore and strategy.

HBCUs have always been known for promoting their values of community service and teaching, but oft left out of the conversation is the research portion of our institutions. The importance of research can not be overstated. As mentioned in the article The University of Power & Wealth that research and an environment of campus entrepreneurship to commercialize that research has produced companies like FedEx, Microsoft, Google, Facebook, Time Warner, and Dell just to name a few of the more well known companies. Not just companies, but products like Gatorade, which was invented at the University of Florida in 1965 and from which the university still receives royalties north of $10 million annually from Pepsi. There have also been inventions that simply serve the societal good like oral contraceptives and the seat belt that were created by college research and ingenuity.

HBCUs comprise approximately 2.3 percent of all colleges and universities in America. However, they make up only 0.7 percent of the research and development spending by American universities. Just to get to its representative amount of 2.3 percent would require R&D spending to increase from its current $500 million to $1.5 billion. Unfortunately, almost every conversation had with HBCU leadership and alumni would lead many to believe the answer to fixing our financial problems is through sports. A recent report by the NCAA showed that only 14 of the 120 Football Bowl Subdivision schools made money from campus athletics. That profit is primarily thanks to television deals through their conferences that HBCUs have little hope of obtaining at scale. That is not to say they can not be profitable, they can, but not following the playing book of their counterparts. For a more intimate perspective let us look at the University of Texas, the school with the one of the most valuable football programs in the country. It produces $109 million in revenue according to Forbes. Sounds great, right? Sounds like the answer to all of our prayers. Because when you are dehydrated even a bit of spit your way will appear to be a glass of water. Meanwhile, the University of Pittsburgh, America’s top grossing university hospital, produced revenue of $11.87 billion or 109 times the revenue that the University of Texas football program produces annually. In fact, even the University of Texas’s most valuable asset is its hospital, which generates almost $5 billion in revenue annually and has unbridled power in the city of Houston’s Texas Medical Center, the largest of its kind in the world.

Currently, HBCUs as aforementioned produce approximately $500 million collectively in research expenditures annually. There are 40 HWCU/PWI schools that individually do $500 million or greater annually and 8 of those 40 conduct $1 billion or greater annually according to the National Science Foundation. The gap between the top twenty HWCU/PWI and HBCUs when it relates to research continues to grow with the most recent data showing for every $1 that HBCUs spend on research, their counterparts are spending $52.

This is not to say that HBCUs are not doing prominent research, they most certainly are. Dr. Hadiyah-Nicole Green, a physicist, alum of Alabama A&M University, and who was a professor at Tuskegee University and now serves at Morehouse School of Medicine, received a $1.1 million grant for a pioneering technology that can kill cancer cells with lasers. That is just one of many prominent discoveries happening within HBCU research, but there are more fields and much more that needs to be taking place from history, economics, STEM fields, and many more. HBCU research should be touching every facet of African American and African Diaspora life. Yet, the commitment and infrastructure to do so is significantly lacking to close the gap.

We have examples of brand new stadiums that cost an HBCU $60 million, but two-thirds of that cost  was paid for by increasing student fees. Where is the same commitment to research? What would it take to build the first HBCU into a billion dollar research institution?

  1. VISION – This is as abstract as it is tangible. Either alumni or a president needs to commit to research as an integral part of the institution and what their plan would be to grow a strategic plan of making it a larger part of the HBCU’s DNA. One way to go about this is to bring in a president with a research background who truly understands and values both STEM and Humanities research and the possibilities it can open for an institution willing to invest in it. We explored a list of a potential HBCU presidents with at least six of the choices having solid research backgrounds in everything from technology to archaeology. These are the type of people who know what it takes to build the infrastructure and develop a strategy as it relates to building a research juggernaut.
  2. RESEARCH PHILANTHROPY – Also known as targeted giving. We see this when alumni are asked to become boosters. Athletics on most college campuses, HBCUs included, has had more targeted giving than other departments. It works primarily because alumni feel the giving is tangible. Give to athletics and your teams win is the tagline. HBCUs must lay out a similar vision and tagline for research. Alumni need to know why they need to give to research and what exactly it is building – see number one. Virginia State University Economics alumni have taken matters in their own hands created an endowment for their department of which a percentage is directly to be used for economics research. It is vital that alumni know what their donation is going to be used for and how much it will take to accomplish the objective.
  3. ALL HANDS ON DECK – By this we mean that research must be present throughout the entire campus. Who on an HBCU campus should be conducting research? Everyone. Quite literally. Freshmen upon entering should know that in order to graduate they will need to have completed some type of supervised research. More students are taking longer than four years to complete undergraduate these days so they may as well add this component while they are matriculating. It may go a long way to keeping them focused as well. According to Science Magazine it also has become a vital piece of obtaining employment or improving graduate schools, “undergraduates participate in research all the time; in chemistry, 72% of graduates had some research experience, according to a recent study sponsored by the National Science Foundation (NSF). In environmental science, the study found, 74% of undergraduates had research experience.” However, it can not stop with the undergraduates or even the graduates, faculty and staff must be involved. Remember the Gatorade? The groundskeeper department may create the next amazing product that can go from college grounds to residential  homes across the country. Make everyone invested in it.
  4. STOP ACADEMIC INCEST – This is strictly for HBCUs with graduate schools.  Far too many HBCU undergraduates who graduate from HBCUs with graduate schools who do not have a job lined up or still not sure what they want to do just park themselves in the school’s graduate school as a placeholder. For those HBCUs, they do not mind because the student keeps supplying them with tuition revenue for a few more years. This is short sighted and apathetic. If the majority of your graduate school is made up of your own undergraduates you are doing something wrong. Students do not benefit from it because they never get new perspectives. Remember, HBCUs are not a monolith of intellect. Students themselves benefit from a change of scenery and institutional DNA. The same goes for the institutions. An infusion of new intellectual capital, more sharpened, and the cream of other HBCUs alumni raises the research prowess.
  5. THE PIPELINE – Last, but not least – the pipeline. This means that HBCUs must be connected. HBCU must make it a point to push their HBCU undergraduates into HBCU graduate schools (just not their own). If the HBCU is an undergraduate institution, then it must ensure its alumni are choosing HBCU graduate schools if they are considering furthering their education. For instance, Texas Southern and Prairie View A&M, two public HBCUs in Texas, have within their own state six private HBCUs that are undergraduate only. Alumni from both institutions are coming together to create scholarships through the HBCU Endowment Foundation that would provide scholarships from the six private HBCUs to those two HBCU’s graduate schools. A vital means to keeping the cream of the intellectual capital from the pipeline within it. A key example of the pipeline is the aforementioned Dr. Hadiyah Nicole-Green (pictured below) who attended Alabama A&M University for undergraduate and has become a faculty at Tuskegee University and is now at Morehouse School of Medicine.

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These are just a tip of the iceberg that HBCUs must do to improve the research prowess of our institutions from undergraduate to graduate and throughout the campus. Colleges and universities importance in creating and impacting societal, economic, and political research can not be understated of the acute importance it prevails. HBCUs can find long-term financial security in more research and increasing their value to African America and to the world in general. We do not need to produce another George Washington Carver, but an army of Carvers. If we are to be present in the institutional landscape for another century, then we must ensure that research is an important part of our foundational pillars we build upon.

HBCU Money™ Presents: The George W. Carver 2014’s Top 20 HBCU Research Institutions

gwcarverlabjpg-3550550efe9ad5fa

In an ode to the greatest HBCU scientist, we have now named our top HBCU research institution list for George Washington Carver.

HBCUs appear to have taken another step back in the research field according to the latest National Science Foundation data. In 2013, research expenditures for the top 20 HBCUs combined for $451.4 million, while 2014 combines for $445.4 million. This represents a 1.34 percent drop year over year and 2.13 percent drop from two years ago.

  • The top ranked HBCU is Florida A&M University at 199 and the twentieth ranked Alcorn State University is listed at 314 in America’s college research landscape.
  • MEAC leads the way with eight schools versus the SWAC with four.
  • Division II/III schools also comprise two 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 – $41.37 million
  2. Morehouse School of Medicine – $41.86 million
  3. Howard University – $40.77 million
  4. North Carolina A&T State University – $35.05 million
  5. Alabama A&M University – $32.91 million
  6. Jackson State University – $$26.61 million
  7. Tuskegee University – $24.95 million
  8. Charles Drew University of Medicine – $20.69 million
  9. University of Virgin Islands – $20.37 million
  10. Tennessee State University – $20.07 million
  11. Meharry Medical College – $19.00 million
  12. Delaware State University – $17.68 million
  13. Morgan State University – $15.72 million
  14. Fayetteville State University – $14.73 million
  15. South Carolina State University – $13.15 million
  16. Prairie View A&M University – $12.29 million
  17. North Carolina Central University – $11.54 million
  18. Hampton University – $11.17 million
  19. Southern University and A&M College – $10.42 million
  20. Alcorn State University – $10.06 million

TOP 20 COMBINED TOTAL: $445.4 million ($451.4 million)

Additional Notes

The HWCU-HBCU gap for research among top 20 research institutions is 52:1, an increase from 2013’s 50:1.

Top 20 HWCUs Combined: $23.2 billion ($22.5 billion)

Top 20 Average HWCU – $1.1 billion vs. Top 20 Average HBCU – $22.3 million

Top 20 Median HWCUs – $948 million vs. Top 20 Median HBCU – $19.5 million

Source: National Science Foundation