New Philanthropy and HBCUs Report Reveals Legacy of Chronic Underfunding to Historically Black Colleges and Universities

Candid and ABFE's report reveals funding disparities and gaps to HBCUs and highlights opportunities for greater philanthropic support

NEW YORK, May 2, 2023 /PRNewswire-PRWeb/ -- Candid and ABFE released today Philanthropy and HBCUs: Foundation funding to historically Black colleges and universities. The new report is the most comprehensive analysis of private philanthropic support to HBCUs. Philanthropy and HBCUs includes analysis of 18 years of funding data to 103 HBCUs as well as interviews with HBCU staff and funders and a focus group with HBCU students.

Historically Black colleges and universities (HBCUs)
Historically Black colleges and universities have played a central?yet underappreciated?role in the United States. HBCUs account for approximately 3% of all colleges and universities in the U.S., and they give 13% of all bachelor's degrees awarded to Black college graduates in the nation. 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. HBCUs provide supportive spaces for college and community engagement, and are centers of social activism, cultural hubs, and builders of Black entrepreneurship. HBCUs not only offer educational opportunities for Black people, but they also strengthen Black communities. Yet despite their significance and contributions, HBCUs continue to be systematically underfunded.

Uneven philanthropic support for HBCUs
Cathleen Clerkin, senior director of insights at Candid, said, "To better understand how to confront racial inequity, the social sector needs a stronger foundation of research to help build our future. Our hope with this report is to?spark?sector-wide visibility and discourse?on the need for equitable investment in HBCUs so they can thrive even more."

Key findings in Philanthropy and HBCUs include:
-Large U.S. foundations steadily decreased their support of HBCUs between 2002 to 2019. They awarded $65 million to HBCUs in 2002. By 2019, giving decreased 30% to $45 million (not adjusting for inflation).
-From 2015 to 2019:

• The average Ivy League institution received 178 times more foundation funding than the average HBCU. Foundations gave Ivy League schools a combined $5.5 billion in philanthropic dollars, compared to $303 million for HBCUs.
• Compared to higher education institutions with highly similar attributes (e.g., size, locale, institution type), HBCUs received, on average, about two-thirds of what foundations paid out to composites of similarly situated institutions.
• Foundations tended to award proportionately fewer grant dollars as general operating support to HBCUs compared to Ivy League and similarly situated institutions.
• 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.
• Independent foundations accounted for two-thirds of grant dollars. Corporate and community foundations represented 21% and 12% of grant dollars, respectively.

-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.)

Philanthropy can have a greater impact on HBCUs
Susan Taylor Batten, president and CEO of ABFE, said: "As a proud alum of two HBCUs, I know firsthand how critically important these institutions are to this nation. Despite being drastically underfunded with lower endowments, HBCUs continue to serve as vital educational and cultural epicenters in Black communities. Philanthropy can serve in partnership to create more sustainability in HBCUs for generations to come. This report serves as a clarion call to our sector to right the systemic challenges facing HBCUs and adequately invest in the future of these institutions."

There are many ways foundations can demonstrate greater commitment to building equity for HBCUs. These include:

• Fund HBCUs and fund them consistently. Although foundations have increased funding and collaborative opportunities with HBCUs in 2020, it is not known whether an emphasis on racial equity or an appreciation for HBCUs will continue to grow or turn in the opposite direction. HBCUs need consistent funding to ensure their sustainability.
• Build relationships with HBCUs. Philanthropy is a relational sector, and funding opportunities emerge through connections. To change the dynamic from overlooking to lifting up HBCUs, foundations must approach relationship-building intentionally.
• Support infrastructure and capacity. HBCU and foundation staff alike agree that staff capacity, retention, and training are needed. Ways to address this include funding for staff and faculty development, financial and fundraising training, peer networking, and convenings.
• Give general operating support to empower HBCUs to set their own agendas. Foundations typically award proportionately less general operating support to HBCUs compared to Ivy League and similarly situated institutions. General operating support is essential for institutions to have the flexibility and decision-making power to achieve their goals.
• Uplift and leverage the assets of HBCUs. An investment in HBCU students has effects beyond the individual. They impact Black families, communities, and the world.

Read the full report at doi.org/10/gr2bkm.

About Candid
Candid is a 501(c)(3) nonprofit organization that provides the most comprehensive data and insights about the social sector. Every year, millions of nonprofits spend trillions of dollars around the world. Candid finds out where that money comes from, where it goes, and why it matters. Candid was formed in 2019 when GuideStar and Foundation Center merged. Candid combined GuideStar's tools on nonprofits and Foundation Center's tools on foundations with new resources to offer more comprehensive, real-time information about the social sector. Find out more at candid.org and on LinkedIn, Instagram, and Twitter.

About ABFE
ABFE is a membership-based philanthropic organization that advocates for responsive and transformative investments in Black communities. Partnering with foundations, nonprofits and individuals, ABFE provides its members with professional development and technical assistance resources that further the philanthropic sector's connection and responsiveness to issues of equity, diversity and inclusion. Established in 1971 as the Association of Black Foundation Executives, the organization was credited with many of philanthropy's early gains in diversity. It since has evolved into an influential network. In 2013, the organization shed its descriptor and adopted the simpler ABFE (ab-fee) to better reflect its broadening membership. Find out more at abfe.org and on LinkedIn, Instagram, and Twitter.

Media Contact

Adia Colar, Candid, 5107787382, [email protected]

Grace Oshin, ABFE, 9144733734, [email protected]

SOURCE Candid