The HBCU Transformation Project, a collaborative initiative encompassing 40 historically Black colleges and universities (HBCUs), unveiled a momentous development on Wednesday.
A generous $124 million donation from the philanthropic fund, Blue Meridian Partners, has been earmarked to propel these institutions toward higher student enrollment, increased graduation rates, and enhanced career prospects for their graduates.
UNCF, helping the distribution of the funds, expressed its enthusiastic endorsement of this financial windfall, which is poised to empower both public and private HBCUs. Michael Lomax, UNCF’s President and CEO, hailed the donation as a resounding vote of confidence in the coalition.
He remarked, “This substantial grant from Blue Meridian Partners signifies a strong affirmation from the philanthropic community regarding the merits of our mission.”
This sizeable donation amplifies the HBCU Transformation Project’s ongoing efforts, as it follows a previous infusion of $75 million from Blue Meridian Partners since 2020. The project’s early accomplishments in bolstering enrollment and fortifying core operations have been deemed highly promising, according to Jim Shelton, President and Chief Investment and Impact Officer of Blue Meridian Partners.
Shelton remarked, “Our progress thus far has made it abundantly clear that we are only just beginning this vital work. Many of these institutions have been historically underfunded and require substantial investments. We believe we can serve as a catalyst for bringing vital resources to the table.”
The project has also secured financial backing from prominent organizations, including $17.6 million from the Bill & Melinda Gates Foundation, $4.5 million from JP Morgan Chase, and $1 million from Capital One, as reported by UNCF.
Notably, Blue Meridian Partners initially stepped in to support HBCUs at the onset of the pandemic, providing vital assistance to cover operational costs when these schools faced the challenges of temporary closure.
Harry Williams, President and CEO of the Thurgood Marshall College Fund (TMCF), reflected, “We were genuinely concerned about the survival of HBCUs, given their lack of substantial endowments and resources to weather such crises.”
In tandem with UNCF, TMCF, and the Partnership for Education Advancement, these three entities jointly oversee the allocation of the project’s grants, with the majority channeled directly to the participating HBCUs. Additionally, Blue Meridian provided direct funding to enhance the capacity of these intermediaries in supporting the schools.
One remarkable outcome of this initiative is South Carolina State University’s utilization of early funding to procure a cutting-edge customer relationship management platform, streamlining enrollment and financial aid processes that were previously manual and disjointed. The upgrade enabled the university to communicate effectively with applicants and increase incoming freshman numbers from 371 in 2019 to an impressive 1,200 this year.
Alexander Conyers, President of South Carolina State University, stated, “This flexible funding has allowed us to leap forward by five to seven years in terms of our progress. It’s been transformative.”
Furthermore, by sharing these innovative services and vendor solutions, these institutions are efficiently managing costs, as emphasized by Michael Lomax.
Decades of underfunding and systemic bias in state funding have hindered HBCUs’ ability to develop and sustain their essential infrastructure, observed Marybeth Gasman, a distinguished professor at Rutgers University. She hailed the project and its newfound funding as a long-overdue intervention, highlighting the merits of shared services for financially under-resourced institutions.
To continue receiving these funds, the HBCU Transformation Project must meet its goals of bolstering enrollment, graduation rates, and employment outcomes for graduates. Blue Meridian Partners encourages the institutions to set ambitious targets, even if they are not met, rather than aiming too conservatively.
Jim Shelton stated that the gift strikes a balance between flexibility and accountability, permitting the intermediaries and participating HBCUs considerable latitude in determining the best use of funds, provided they present a compelling business case.
In legislative actions taken after the pandemic, HBCUs have received substantial support, totaling nearly $6 billion from federal agencies. This support includes the cancellation of $1.6 billion in debt held by the Department of Education, according to the White House.
Despite these federal initiatives, philanthropic foundations have historically extended far less support to HBCUs compared to predominantly white institutions. A recent study by the philanthropic research group Candid and ABFE, a nonprofit advocating for investments in Black communities, revealed a significant disparity.
It showed that the eight Ivy League schools received a staggering $5.5 billion from the 1,000 largest U.S. foundations, while the 99 HBCUs received only $45 million in 2019.
This funding gap has persisted, with foundation support for HBCUs declining by 30% between 2002 and 2019, even when adjusted for inflation.
However, private support for HBCUs has surged since 2020, in response to the pandemic and social movements like the aftermath of George Floyd’s murder. Corporations, in particular, have shown keen interest in providing funding and partnering with these institutions for workforce development initiatives.
Harry Williams hopes that this renewed focus will illuminate the profound contributions of HBCUs to the African American community, serving as a beacon of transformation and a catalyst for the creation of the modern middle class.
SOURCE: nbcnews.com