Capital Campaigns

Black Issues in Higher Education, July 5, 2001 by Eleanor Lee Yates

As competition grows for philanthropic dollars, and federal and state funding decreases, colleges and universities are launching record-breaking capital campaigns. But do HBCUs face different fundraising challenges than their White counterparts?

Hampton University recently set a record among historically Black colleges and universities by raising $200 million in a capital campaign that was completed three years early. Now Hampton's president, Dr. William R. Harvey, has raised the bar, expanding the goal to $250 million by 2003. The university is well on its way to meeting that goal -- to date more than $220 million has been raised. And Harvey won't guarantee that the campaign will stop at $250 million.

"We've picked the low-hanging fruit. But there's still fruit available higher up in the tree," says Harvey.

Hampton is more the exception than the rule when it comes to raising money among HBCUs. Many have had successful campaigns, but HBCU leaders say they often face hardships that traditionally White schools don't have.

"In some cases, our colleges are not well known. They may not have the prestige. Part of our lot is to make our case every day," says Dr. Thomas Cole, president of Clark Atlanta University. "Public opinion on Black colleges seems to change. You think you've convinced people of the value of Black colleges, then you find you have to reconvince them."

Clark Atlanta University is in the planning stages of a major campaign. Much of the money will go for a multipurpose classroom, as well as the endowment of scholarships and faculty support. The latter are areas Cole finds to be the biggest challenges. Donors usually prefer to donate money for a building, something tangible they can point to.

It is difficult enough for private HBCUs to raise money, but Dwayne Ashley, president of the Thurgood Marshall Scholarship Fund, says it is especially difficult for public HBCUs.

"People hear the word `public' and think the state is funding them 100 percent," says Ashley. "They think, `I pay taxes, and that should cover the resources.' But state funding is never more than 30 (percent) to 40 percent, leaving public HBCUs to raise the rest."

Of Black students who attend HBCUs, approximately 70 percent attend public schools. Furthermore, enrollment at public HBCUs is often triple that of private HBCUs. Because these schools traditionally were not strong in fund raising, these schools have years of catching up to do, says Ashley.

The Thurgood Marshall Scholarship Fund has offered training to public HBCU presidents, vice presidents of development and new development officers.

"They learn new techniques, and technology training helps them do a better job at soliciting and running campaigns," he says.

Gains are being made, however, says Ashley. Of the 45 members of the Thurgood Marshall Scholarship Fund, 14 of the members have an endowment of $1 million to $10 million. The United Negro College Fund also raises operating funds for its member institutions, which include private HBCUs.

LOYAL ALUMNI

Alumni are the No. 1 source of financial support for private colleges and a major one for all schools. According to the Council for Aid to Education, in 1999 approximately 32 percent of alumni at private liberal arts schools gave to their alma mater, compared to 18.8 percent at public colleges and universities.

During the capital campaign at Smith College, a women's college in Northampton, Mass., the message to alumni and friends of the school was that every gift is significant, says Karin George, vice president for advancement at Smith.

With an endowment of more than $900 million, almost 90 percent of Smith's budget comes from alumni donations, though corporate support is on the rise.

Yale University is in its final year of a five-year $1.5 billion capital campaign. The university has raised $1.72 billion, according to Charles Pagnam, Yale's vice president of development. About $424 million will go to renovate the historic residence halls, build new science buildings and support student scholarships. Yale has raised more than $636 million for its endowment.

According to Pagnam, the school has never received many corporate gifts but about 14 percent of campaign dollars -- about $238 million -- comes from foundations. It is the alumni that have been Yale's core support.

The New Haven, Conn., Ivy League institution has traditionally had one of the highest alumni giving records among the nation's colleges and universities. Last year approximately 90 percent contributed.

HBCU leaders acknowledge that alumni giving continues to be an area they must improve upon.

Clark Atlanta University, which is affiliated with the United Methodist Church, receives approximately $1 million from the church, as well as donations from alumni and friends, but its biggest contributors are corporate. Corporations are eager to identify talented African Americans and hire the best students, says President Cole of Clark Atlanta. But Cole, like many HBCU presidents, wants to lessen reliance on corporate support.