Private Foundation Funding of Historically Black Colleges and Universities

My University, Florida A&M, was recently designated the top ranked public HBCU in the nation. Fourth year in a row too!  And the 103rd top public university.  A recent study by Candid though shows astonishing disparities in private foundation support for FAMU and other Historically Black Colleges and Universities, especially relative to Ivy League schools.  The haves and the have nots, I guess.  Here is the summary of Philanthropy and HBCUs:  Foundation funding to historically Black colleges and Universities.

EXECUTIVE SUMMARY

Historically Black colleges and universities (HBCUs) have played a central—if underappreciated—role in the United States. The earliest HBCUs were founded before the legal enslavement of Black people ended. Since then, they have been critical in educating Black people, developing Black leaders, and addressing inequality.

Although researchers have studied the government’s role in financing HBCUs, there has been little research on private philanthropic support. This report seeks to fill that gap by examining U.S. foundation funding to HBCUs and exploring the relationship between foundations and HBCUs. Our qualitative research consisted of interviews with seven HBCU staff and seven funders, as well as a focus group with four HBCU students to understand their experiences and perspectives. Our quantitative analysis leveraged Candid’s comprehensive grants data to identify funding patterns and gaps to 103 HBCUs.

Key findings

—Large U.S. foundations steadily decreased their support of HBCUs between 2002 and 2019. They awarded $65 million to HBCUs in 2002; by 2019, giving decreased 30% to $45 million (not adjusting for inflation).

—Examining all available foundation grants data from 2015 to 2019, funding held relatively steady. Within these five years:

• Independent foundations accounted for two-thirds of grant dollars (66%). Corporate and community foundations represented 21% and 12% of grant dollars, respectively.

• Among the 1,607 foundations that supported HBCUs, the median aggregate dollar amount awarded was $11,000. The median number of HBCUs supported was one.

• The top donors to HBCUs were The Duke Endowment, Andrew W. Mellon Foundation, and Coca-Cola Foundation.

• The average Ivy League institution received 178 times more foundation funding than the average HBCU. Ivy League schools received a combined $5.5 billion in philanthropic dollars compared to HBCUs’ $303 million. Executive summary7Philanthropy and HBCUs: Foundation funding to historically Black colleges and universities

• Compared to higher education institutions with highly similar attributes (geographic region, locale, size, institution type, and specialization), HBCUs were underfunded. HBCUs received, on average, about two-thirds of what foundations paid out to composites of similarly situated institutions. Whereas HBCUs averaged $620,073 in annual grant dollars per institution, their composite comparison schools received on average $968,988.

• Foundations tended to award proportionately fewer grant dollars as general operating support to HBCUs compared to Ivy League and similarly situated institutions. (This trend was reversed in 2018 and 2019 due to grants by The Duke Endowment.)

• HBCUs also received proportionately fewer dollars earmarked for research when compared to Ivy League and similarly situated institutions.

• Among HBCUs, there were clear “haves” and “have nots” when it came to philanthropic support. The top 10 funded HBCUs received more than half (52%) of all foundation funding to the HBCU community.

• Private HBCUs received more than double the foundation grant dollars of public HBCUs.

—A preliminary examination of 2020 grants data indicates a sizable increase in HBCU funding in 2020, currently totaling $249 million. (Data collection, however, is still ongoing, and this figure includes data sourced from news stories.)

—Based on our qualitative research, all HBCU staff interviewed for this study reported increased philanthropic support starting in 2020. The murder of George Floyd and the subsequent heightened racial justice movement caused the world, including the philanthropic sector, to pay attention to systemic racial inequities that disproportionately impact Black communities. Thus, funders began acknowledging and/or prioritizing racial equity and diversity in their grantmaking.

—Despite the recent increases in philanthropic attention and funding, more work is needed. Interview participants highlighted that HBCUs need diverse types of support to mitigate generations of underinvestment. This includes funding to address infrastructure, personnel, and scholarships, as well as unrestricted funding. HBCUs provide a unique, welcoming, and inclusive environment that students value. But students are impacted by the institutions’ financial, resource, and capacity challenges. HBCU funders affirm HBCU excellence and recognize the barriers HBCUs face due to systemic racism.

Foundations have the potential to drastically expand funding directed to HBCUs. Though the data shows persistent historical underinvestment, it also provides insight into the shifts philanthropy can make to contribute to the future of HBCUs. HBCUs have thus far been successful with limited resources, underscoring their value, power, and potential. By committing to funding HBCUs, developing long-lasting relationships with them, and increasing HBCU capacity, foundations will strengthen HBCUs to continue—and build upon—the remarkable impact they have had on Black communities and the nation.

darryll jones