UNCF鈥檚 bold $1 billion campaign will enhance endowments at HBCUs
During a press conference held today on the campus of
精东影业,鈥疷NCF (United Negro College Fund) announced that Lilly Endowment Inc.鈥痟as awarded a $100 million unrestricted grant to support UNCF鈥檚 capital campaign.
UNCF is undertaking a bold $1 billion capital campaign that includes five components: student scholarships, unrestricted funds to enhance the endowments for historically Black colleges and universities (HBCUs), capacity-building programs for member HBCUs (such as technology, training and research), cash reserves and endowed funds for UNCF and support for UNCF鈥檚 annual campaign.
鈥淪ince our founding in 1944, Lilly Endowment has been a consistent and significant philanthropic supporter. This $100 million grant is the largest unrestricted private grant we have ever received. It follows a $50 million grant鈥痜rom Lilly Endowment in 2015 that enabled UNCF to鈥痩aunch the Career Pathways Initiative(CPI), which sought to strengthen the programs and capabilities of HBCUs to enhance career outcomes for students,鈥� said Dr. Michael L. Lomax, president and CEO, UNCF.
After careful consideration on how to utilize Lilly Endowment鈥檚 unrestricted grant, UNCF has decided to deploy it鈥痶o the capital campaign鈥檚 objective of building a pooled endowment fund that鈥痺ill increase the endowments at UNCF鈥檚 37 member institutions by $10 million each.
鈥淟illy Endowment鈥檚 unrestricted grant will be used as UNCF鈥檚 initial investment toward the establishment of an HBCU pooled endowment fund of $370 million,鈥� Lomax said.
The objective is to increase the unrestricted endowment for each of UNCF鈥檚 37 member institutions by $10 million, or a total of $370 million. Through its capital campaign, UNCF will raise $185 million, or $5 million per institution. It will collaborate with the institutions to match this contribution through their own fundraising efforts. This infusion of $100 million will immediately increase each UNCF member鈥檚 endowment by $2.7 million, at least doubling the endowments of several institutions.
鈥淲e plan to establish endowments for our member HBCUs that will be pooled and managed at UNCF. They will become permanent assets of the institutions. Rising tides do lift all boats and UNCF is committed to making this a reality because 100 percent of this grant will be used to enhance the endowments at our 37 member colleges and universities. We believe this is the most prudent way to use Lilly Endowment鈥檚 transformational support,鈥� said Lomax.
Pooled endowments can offer several benefits to HBCUs, including increased investment power to access a wider range of investment opportunities in stocks, bonds and real estate that can potentially generate higher returns. In addition, pooled endowments promote collaboration and networking among HBCUs, which can lead to enhanced fundraising efforts, increased visibility and improved financial stability.
Research from UNCF鈥檚 Frederick D. Patterson Research Institute found that the median endowment for UNCF member institutions is $15.9 million. After the successful completion of the capital campaign, the median will grow to $25.9 million, an increase of 63%, bringing it closer to the median college endowment of $214.6 million as determined by the National Association of College University Business Officers (NACUBO).
鈥淔or nearly 80 years, Lilly Endowment has supported UNCF鈥檚 efforts to strengthen its member institutions and thereby enhance the educational attainment of their students,鈥� said N. Clay Robbins, Lilly Endowment鈥檚 chairman and CEO. 鈥淭he 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鈥檚 member institutions and their students鈥� lives.鈥�
鈥淭his grant from Lilly Endowment is far-reaching and long-lasting. It will change the financial trajectory of many HBCUs for many years to come. We are incredibly grateful for Lilly Endowment鈥檚 continued support of UNCF and higher education,鈥� said Marc Barnes, senior vice president, capital campaign, UNCF. 鈥淥ur commitment is to generate philanthropic funding to not just increase scholarships but also strengthen HBCUs, raise graduation rates, ensure greater economic mobility and grow endowments at all our 37 member HBCUs.鈥�
UNCF Board Chair Milton H. Jones, Jr., affirmed Barnes鈥� comments. 鈥淚 commend Lilly Endowment for their ongoing commitment and support of UNCF and its member institutions. This historic grant is going to provide great momentum for our capital campaign and now serves as a catalyst for others in the philanthropic community to join us as we take our member HBCUs to the next level.鈥�
精东影业 President and Chair of UNCF鈥檚 Institutional Board Dr. George T. French, Jr., said, 鈥淭oday鈥檚 announcement is a major accomplishment and will provide unprecedented support for the financial stability and continued success of UNCF鈥檚 member institutions. Our campuses stand ready to work with UNCF to accomplish the $370 million goal for the pooled unrestricted endowment.鈥�