article from
Inside Philanthropy magazine/website
In a Higher Ed Landscape Flush with Cash, Are More Big Gifts Starting to Reach HBCUs?
October 03, 2019/ Mike Scutari
Featuring a controversial donor and corporate intrigue, a recent
Inside Philanthropy piece on ex-Papa John’s CEO John Schnatter and his previous employer’s gifts to two universities made for breathless reading. Yet from a purely financial perspective, the
three donations in question totaled less than $2 million—chump change in a higher ed fundraising space that saw American universities raise a record $46.7 billion in fiscal 2018.
Why such a hullabaloo over donations that amount to less money than Harvard University raises on an average day? The answer is simple. The gifts flowed to two historically black colleges and universities (HBCUs)—Kentucky’s Simmons College and North Carolina’s Bennett College. This is newsworthy because at a time when higher ed donors profess an interest in equity, and many institutional funders are focusing more attention on race, such schools continue to receive scant support as money continues to flow to more affluent public and private universities.
HBCUs aren’t alone in waiting for big checks that rarely materialize. In 2016, I asked if Herb Alpert’s
$10.1 million donation to Los Angeles City College would focus donors’ attention on woefully underfunded community colleges. Two years later, I pondered the possibility that Michael Bloomberg’s gift of
$1.8 billion in financial aid to Johns Hopkins University would make alumni reconsider their love affair with tuition-busting capital projects. (In each case, the answer has been a resounding
“no.”)
In 2017, donors made 462 gifts of $1 million or more to higher education. HBCUs received just two of them.
Last year, when Ronda Stryker and William Johnston made a $30 million gift to Atlanta’s Spelman College, I wondered if mega-donors would finally
give HBCUs a second look. I wasn’t alone.
Nonprofit Quarterly’s Debby Warren called the Stryker/Johnston gift an
“inflection point,” and asked if other donors would “step up” to support HBCUs that haven’t recovered from the Great Recession and were disproportionately affected by a
2011 change to the PLUS federal student loan program.
It’s been nine months since the Stryker-Johnson gift. Have donors stepped up? As you’d expect, it depends on the definition of “stepping up.” Citing data from the
Chronicle of Philanthropy’s database of large charitable gifts,
The Atlantic’s Adam Harris found that more than a dozen donations of $5 million or more were made to universities in the first month of 2019 alone. None of these gifts went to an HBCU.
However, HBCUs’ prospects improved as the year progressed, thanks to Robert F. Smith’s pledge to pay off student loans for Morehouse College’s graduating class of 2019 and UnitedHealth Group’s $8.25 million partnership with the Atlanta University Center Consortium (AUCC), the oldest and largest consortium of HBCUs, to launch a data science initiative.
Obstacles to Support
There are many reasons that HBCU fundraisers lag behind their predominantly white institution (PWI) counterparts. Most obviously, these schools, like community colleges and
trade schools, don’t have a lot of rich alums, in contrast to Ivy League schools, which reap most of their mega-gifts from incredibly wealthy graduates.
Also, HBCUs have historically been at a disadvantage in large philanthropic gifts from non-alumni. On the surface, this isn’t that surprising. It’s less likely that a donor will give money to a school where he or she has no direct connection. While this tendency also applies to PWIs, it’s far more acute for HBCUs. Why?
For starters, non-alumni donors may be reluctant to support HBCUs that have a six-year degree-completion rate of
32 percent, according to a recent report from the Education Trust, compared with a 45 percent rate for black students at all kinds of institutions. But these findings, said Ray Franke, an assistant professor of higher education at the University of Massachusetts at Boston, don’t take into account systemic differences between students, like socioeconomic status or institutional disparities in revenues and wealth.
Marybeth Gasman, a professor at the University of Pennsylvania Graduate School of Education, speaking to
Bloomberg, pointed to another reason that non-alumni skip over HBCUs. “There's racism involved in acquiring funds.” In the past, “funders did not trust African Americans to manage their money, so they didn't give.” As a result, HBCUs can’t gain access to the kinds of investment strategies available to schools with multibillion-dollar endowments. “Wealth begets wealth,” Gasman said. “This is the same thing that happens with HBCUs.”
This reality is compounded by the fact that although African Americans tend to give a larger share of their discretionary income to charity than do white Americans, they also tend to have less accumulated wealth, even at similar levels of educational attainment. According to the
New York Times, for every $100 in white family wealth, black families hold just $5.04. HBCUs are also facing challenges endemic to other
small private universities, like dwindling enrollment, deteriorating infrastructure, student defaults and rising pension costs.
Add it all up, and it’s hard to fault HBCUs for accepting support from unlikely funders like
the Koch brothers, who, critics argue, have bankrolled an implicitly racist agenda. As Dillard University President Walter Kimbrough said when asked about
receiving Koch cash, “I'll still fight for things important to the African-American community, and I’ll use their money to do it.”
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