All 2020 HBCU Endowments Combined Just A Fraction of One Ivy League

[Responsible Allen Iverson]

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All 2020 HBCU Endowments Combined Just A Fraction of One Ivy League

KEY INSIGHTS

• Howard University has the largest endowment of any HBCU at $712.5 million
• South Carolina State University’s endowment increased a whopping 1,128 percent from 2015 to 2020
• Simmons College of Kentucky’s endowment decreased from $102.6 million in 2015 to nothing in 2020

While HBCUs play an outsized role in educating Black students, they are underfunded. Although they make up just three percent of America's colleges and universities, HBCUs are responsible for more than 20 percent of African American graduates, but they lack the endowment and resources of Ivy League institutions.



The Plug analyzed six years’ worth of data from the National Center for Education Statistics to create a database of the value of all HBCU endowments from June 2015 to September 2020, the most recent data available. Ten HBCUs reported in 2020 that they did not have endowment assets.



Howard University has the largest endowment of any HBCU at $712.5 million. In order to ensure that the endowment continues in perpetuity, only four percent of it can be spent each year.



Howard’s endowment pales in comparison to many non-HBCUs. Though it often ranks within the top 100 universities in the nation, the school’s endowment size ranks #160, according to a report by The Century Foundation.



In contrast, Harvard University has the largest endowment in the nation at more than $53 billion. Just four percent could run Howard and the Howard University Hospital for two and a half years, according to David Bennett, Senior Vice President for Development and Alumni Relations.



"The scale of this is so fundamentally different, that this idea that Howard's is the largest [endowment of all HBCUs] somehow suggests that we're flush, and that is simply not the case," Bennett told The Plug.



In fact, the value of all HBCU endowments in 2020 combined is just 11 percent of Harvard’s endowment in 2020.

Andre Perry, Senior Fellow at the Brookings Institute, testified to Congress last year that the root of the massive differences in endowments goes back centuries.



"There's lots of endowments that — I hate to put a damper on this — were created from cotton money, alcohol money," Perry said.



After the murder of George Floyd, HBCUs received renewed attention and an influx of money. Philanthropist and ex-wife of Jeff Bezos, MacKenzie Scott gave a total of $556 million to HBCUs from July 2020 to December 2020, with several schools putting portions of her millions towards their endowments.



Base10 Partners announced in May 2021 that it had raised a $250 million fund and would donate half the fund's carried interest to HBCUs to support their endowments.



However, the impact of this influx of cash remains to be seen since the Department of Education has yet to release fiscal year 2021 data.



Here’s a breakdown of the largest HBCU endowments, their growth and their decline:



Top 10 largest HBCU endowments

1. Howard University: $712.5 million
2. Spelman College: $377.9 million
3. Hampton University: $280.6 million
4. Meharry Medical College: $179.5 million
5. Morehouse College: $157.1 million
6. Xavier University of Louisiana: $147 million
7. Tuskegee University: $123.4 million
8. Alabama State University: $111.3 million
9. Morehouse School of Medicine: $108.2 million
10. Dillard University: $92 million

HBCUs whose endowments grew by more than 100 percent from 2015 to 2020

• South Carolina State University: Increased a whopping 1,128 percent
• Coppin State University: Increased 620 percent
• Norfolk State University: Increased 239 percent
• Jackson State University: Increased 175 percent
• Central State University: Increased 147 percent
• University of Arkansas at Pine Bluff: Increased 116 percent
• Elizabeth City State University: Increased 114 percent
• Texas College: Increased 108 percent

HBCUs whose endowments decreased by 50 percent or more from 2015 to 2020

• Paul Quinn College: Decreased by 52 percent
• Clinton College: Decreased by 54 percent
• Lincoln University: Decreased by 69 percent
• Shorter College: Decreased by 100 percent. As of fall 2020 reports, they do not have endowment assets
• Simmons College of Kentucky: Decreased by 100 percent. As of fall 2020 reports, they do not have endowment assets.

 

[No1]

Why would they use Harvard which has a larger endowment than any school n America?

 

[intra vires]

Here's some perspective, Harvard's endowment ($53.2B) is little less than the combined endowments ($53.6B) of the University of Michigan, University of Virginia, and the University of California system (Berkeley, Los Angeles, etc.) That's the who's who of prestigious public universities and several other quality institutions.

If you want to make an argument for HBCU funding, then it should be with respect to peer institutions. Hell, I think an argument can be made that, given their unique role within higher education, HBCUs should be better funded than peer institutions. How much better? Not sure, but Harvard is irrelevant to that discussion.

 

[Controversy]

Why would they use Harvard which has a larger endowment than any school n America?

Im a Finance Exec at an elite school. Our endowment is also significantly larger. We bring in so much revenue from the investment proceeds on our endowments, we have to beg dept heads to spend the funds

 

[Piff Perkins]

Here's some perspective, Harvard's endowment ($53.2B) is little less than the combined endowments ($53.6B) of the University of Michigan, University of Virginia, and the University of California system (Berkeley, Los Angeles, etc.) That's the who's who of prestigious public universities and several other quality institutions.

If you want to make an argument for HBCU funding, then it should be with respect to peer institutions. Hell, I think an argument can be made that, given their unique role within higher education, HBCUs should be better funded than peer institutions. How much better? Not sure, but Harvard is irrelevant to that discussion.

Can’t do that if your agenda is to sow discontent and resentment though. That’s all this is. The comparison makes no sense.

 

[Responsible Allen Iverson]

The point of comparing to Harvard is that 107 HBCUs have combined endowments that is a fraction of what ONE PWI school is able to achieve. Of course they are going to compare it to the number one school, the point is to illustrate that HBCUs aren't on the same playing field as white institutions.

 

[mastermind]

The point of comparing to Harvard is that 107 HBCUs have combined endowments that is a fraction of what ONE PWI school is able to achieve. Of course they are going to compare it to the number one school, the point is to illustrate that HBCUs aren't on the same playing field as white institutions.

Its not just any PWI though, its Harvard.

I went to Maryland, and our endowment is actually less than Howard's. There is a lot of reasons for that, but without context you make it seem like Howard is doing better than Maryland. I can assure you Howard is not.

Which is also the other faulty premises with this thread. Endowments are not a barometer of a school's strength. I am also not sure you have a clear understanding of what endowments do.


Now the better question is why the fukk does Harvard have 53 billion dollars in its coffers? Why are they hoarding so much and who does that benefit?

 

[Responsible Allen Iverson]

Its not just any PWI though, its Harvard.

I went to Maryland, and our endowment is actually less than Howard's. There is a lot of reasons for that, but without context you make it seem like Howard is doing better than Maryland. I can assure you Howard is not.

Which is also the other faulty premises with this thread. Endowments are not a barometer of a school's strength. I am also not sure you have a clear understanding of what endowments do.


Now the better question is why the fukk does Harvard have 53 billion dollars in its coffers? Why are they hoarding so much and who does that benefit?

What are you talking about? I didn't make the article, I just explained why they would use the number one school when comparing the total endowments for HBCUs.

 

[mastermind]

What are you talking about?.

Of course they are going to compare it to the number one school, the point is to illustrate that HBCUs aren't on the same playing field as white institutions.

You wrote that.

And Howard has a larger endowment than a lot of PWIs. American University, which is about four miles up from Howard campus, is a PWI private school with about 100
Million more in endowment money Over Howard—this is after a capital funding campaign they initiated a few years ago. It was actually behind Howard.


Comparing anyone to Harvard is absurd. And the bigger question is stop trying to cry and be like Harvard but instead point out that Harvard are full of shyt and wealth hoarding.

 

[Responsible Allen Iverson]

You wrote that.

And Howard has a larger endowment than a lot of PWIs. American University, which is about four miles up from Howard campus, is a PWI private school with about 100
Million more in endowment money Over Howard—this is after a capital funding campaign they initiated a few years ago. It was actually behind Howard.


Comparing anyone to Harvard is absurd. And the bigger question is stop trying to cry and be like Harvard but instead point out that Harvard are full of shyt and wealth hoarding.

You still not saying anything. Did you even read the article? It's not just about Howard's endowment.

 

[mastermind]

You still not saying anything. Did you even read the article? It's not just about Howard's endowment.

I know what the article is about. My point is that it’s bigger than HBCUs. Harvard is Jeff Bezos and Elon Musk.

 

[Responsible Allen Iverson]

I know what the article is about. My point is that it’s bigger than HBCUs. Harvard is Jeff Bezos and Elon Musk.

OK breh, you got it

 

[Lucky_Lefty]

Now the better question is why the fukk does Harvard have 53 billion dollars in its coffers? Why are they hoarding so much and who does that benefit?

Look at their portfolio. A lot of it is tied to hedge funds and private equity. They’ve also been diving into real estate acquisitions and land holdings over the past 5 years big time. But it’s not just them. A lot of those Ivy League and IL adjacent schools have increased their endowments just during the pandemic. shyt is wild. You don’t even have to be one of these elite schools. Clemson’s endowment was just $480+ million a decade ago. They crossed into the billion dollar range last calendar year and expecting 31-35% increase from just last year.

 

[mastermind]

Look at their portfolio. A lot of it is tied to hedge funds and private equity. They’ve also been diving into real estate acquisitions and land holdings over the past 5 years big time. But it’s not just them. A lot of those Ivy League and IL adjacent schools have increased their endowments just during the pandemic. shyt is wild. You don’t even have to be one of these elite schools. Clemson’s endowment was just $480+ million a decade ago. They crossed into the billion dollar range last calendar year and expecting 31-35% increase from just last year.

I know. It’s ridiculous. In a fair nation, Harvard and schools that are hoarding like them would have to come up off that to benefit their students.