HBCUs get largest unrestricted gift in 80 years

The United Negro College Fund (UNCF) announced on Thursday that the Lilly Endowment Inc. will be donating $100 million to historically Black colleges and universities (HBCUs). The donation is the largest unrestricted gift to the 37 HBCUs in the UNCF in 80 years, and part of a $1 billion capital campaign to boost the institutions’ financial longevity and student attendance.

The group also plans to raise $370 million for a shared endowment for HBCUs, to be pooled and managed by the fund. These endowments would become permanent assets of the institutions. “The UNCF programs we have helped fund in the past have been successful, and we are confident that the efforts to be supported by this bold campaign will have a great impact on UNCF’s member institutions and their students’ lives,” N.

Clay Robbins, Lily Endowment’s chairman and CEO, said in a statement. The new grant follows a $50 million gift from Lilly Endowment in 2015 that allowed UNCF to launch its Career Pathways Initiative, which focused on enhancing career outcomes for HBCU students, said Michael Lomax, president and CEO of UNCF.

HBCUs, which primarily serve Black students, have smaller endowments compared to predominantly white institutions (PWIs). A by the Century Foundation found that private PWI endowments are seven times that of private HBCU endowments. For public schools, PWIs on average have endowments that are three times larger than public HBCUs.

However, The Associated Press that donations to HBCUs have increased in recent years in light of racial justice movements — as has enrollment. “This grant from Lilly Endowment is far reaching and long lasting,” said Marc Barnes, senior vice president of capital campaign at UNCF. “It will change the financial trajectory of many HBCUs for many years to come.

We are incredibly grateful for Lilly Endowment’s continued support of UNCF and higher education.” The lack of financial support to HBCUs follows the racial wealth gap, which sees Black families hold far less wealth than their white counterparts. Lomax told the AP he hopes this endowment will provide a financial “cushion” for HBCUs as they continue recruiting students.

“Black families have fewer assets than non Black families,” Lomax said. “They live paycheck to paycheck. Many of our smaller HBCUs live on the tuition revenue semester by semester. They need a cushion. This is that cushion.”.