chapter  7
9 Pages

Building Endowments

It’s a fact. Endowments at HBCUs need to increase. Substantial efforts need to be directed toward enhancing endowments so that HBCUs have a firm foundation on which to operate. There are a number of reasons that HBCUs have had much smaller endowments then majority institutions. First, endowments build over time and due to past discrimination in funding at the state level, as well as within the foundation and corporate world, HBCU endowments have not grown at similar rates to their HWI counterparts (Gasman, 2010b). Second, public HBCUs, much like many of their HWI counterparts, have only in the past two decades reached out to their alumni, who had previously relied on ample state funding. However, times have changed and state funding has dried up quickly. Third, HBCUs have not traditionally focused on endowment building. Instead, they have paid attention to securing grants from corporations and foundations for infrastructure, physical plant expansion and enhancement, and scholarships. This chapter focuses on building endowments, including educating alumni on the value of institutional endowments, identifying areas of need and areas to enhance, determining feasibility, and championing success. It is not a “how to” chapter in the sense of building a basic endowment.