UNCF receives historic $100 million gift to support HBCU funding

The United Negro College Fund (UNCF) has received a historic $100 million grant from Lilly Endowment Inc. to support its capital campaign. This marks the biggest single, unrestricted private investment ever made to UNCF, which the upper education advocacy organization intends to use to increase scholarships to historically Black colleges and universities (HBCUs).

The grants are used to support several priorities, including scholarships, faculty hiring and compensation, and facility improvements; but funding at HBCUs significantly exceed the outcomes of other institutions by at the least 70%. Receives a median Ivy League institution 178 times more foundation funding than the typical HBCU. USA Government Accountability Office study found that HBCU funding per student averages $15,000 compared with $410,000 at comparable non-HBCUs.

They were joined by UNCF leaders Lilly Endowment, Inc. President Jennett M. Hill made the announcement on January 11 at Clark Atlanta University (CAU), which is one in all the UNCF brings together 37 member institutions.

“After careful consideration, we have decided to use the Lily Endowment’s unrestricted grant to establish an HBCU shared endowment fund,” UNCF President and CEO Dr. Michael L. Lomax said during a press conference. “This fund, which has a $370 million goal, will increase the funding of each of our 37 member institutions by $10 million. This is a strategic move that strengthens the impact of the Lily Endowment’s transformational support.”

Dr. Lomax says that with this recent gift, UNCF has raised “$550 million towards its $1 billion capital campaign goal since the silent phase began in 2020. The majority of this funding has allowed us to provide larger scholarships to more students.”

This $100 million injection will immediately increase each UNCF member’s funding by $2.7 million, which is the quantity of existing funding for several HBCUs.

Pooled funds can offer HBCUs various advantages, including: – according to the UNCF statement, including “increased investment power enabling access to a wider range of investment opportunities in stocks, bonds and real estate that have the potential to generate higher returns.” The goal is also to promote collaboration and networking amongst HBCUs, which may lead to higher fundraising, greater visibility and improved financial stability. UNCF just as well launched the Institute of Philanthropy train fundraising professionals at HBCUs and other Black-led organizations.

Marc Barnes, UNCF senior vice chairman for capital campaign, said this historic donation is “far-reaching and long-lasting. This will change the financial trajectory of many HBCUs for years to come.”

CAU President and Chair of the UNCF Institutional Council, Dr. George T. French Jr., said this gift “will provide unprecedented support for the financial stability and continued success of UNCF member institutions. Our campuses stand ready to work with UNCF to achieve the $370 million goal in the combined unrestricted fund.”

According to UNCF, since UNCF’s founding in 1944, the Lilly Endowment has actively supported philanthropy. This $100 million follows a $50 million grant from the Lilly Endowment in 2015 that enabled UNCF to launch Career Pathways Initiative (CPI), which aimed to strengthen HBCU programs and opportunities to improve student profession outcomes.