$100 million gift to benefit Georgia’s HBCUs 

Thanks to a $100 million grant provided by Lilly Endowment Inc, five historically Black colleges and universities (HBCUs) in Georgia are set to benefit from a groundbreaking endowment fund. The United Negro College Fund (UNCF) made the announcement of this generous donation, which marks the largest unrestricted private grant in the UNCF’s 80-year history.

The five Georgia HBCUs that will benefit from this endowment fund include Clark Atlanta University, the Interdenominational Theological Center, Morehouse College, Spelman College, and Paine College in Augusta. Recognizing the financial challenges faced by HBCUs, Michael L. Lomax, the UNCF’s president and CEO, emphasized the significance of addressing the under-resourcing of endowments.

The announcement of the grant was celebrated at Clark Atlanta University. CAU President George T. French Jr. expressed gratitude for the unprecedented support that will contribute to the financial stability and continued success of UNCF’s member institutions.

With this grant, the UNCF has successfully raised $550 million as part of a $1 billion capital campaign initiated in 2020. The $100 million grant will be used to establish a pooled endowment fund, with the UNCF aiming to grow it to $370 million through additional fundraising efforts. The organization will manage the endowment, and the investment earnings will be shared equally among its 37 member schools.

Starting in March of the following year, the UNCF plans to make annual payouts from the endowment earnings, providing the schools with flexibility to use the funds for various purposes, such as faculty salaries or scholarships. The goal is to eventually offer approximately $1 million a year in unrestricted funding to each school, in addition to other support from the organization.

Pooling the endowment resources enables more diversified investment opportunities in stocks, bonds, and real estate, potentially yielding higher returns. It also fosters collaboration and networking among the member schools. While acknowledging that the median endowment for UNCF’s member schools is currently $15.9 million, the organization aims to raise it to $25.9 million through the campaign.

While the endowment increase doesn’t fully close the gap with non-HBCU peers, Lomax believes it draws attention to an area where American philanthropy can make a meaningful difference.