MacKenzie Scott has made headlines this week with her unprecedented donation of $80 million to Howard University, marking the latest significant contribution to historically Black colleges and universities (HBCUs). This generous act is part of a broader trend, with nine billionaires collectively donating over $1 billion to these institutions, addressing long-standing financial disparities.
Scott’s donation is not the largest in recent memory; that title belongs to a $150 million gift to Huston-Tillotson University in September 2023 from a family foundation established by Texas financier William Lewis Moody Jr. This funding aims to enhance student living conditions and academic resources.
In addition to Scott’s contributions, the philanthropic efforts of Robert F. Smith, a private equity billionaire, have also made a significant impact. In 2019, he famously paid off the student loans of the graduating class at Morehouse College, amounting to approximately $34 million. Smith is now extending his initiative to offer loans of up to $20,000 annually to students at over 70 HBCUs and minority-serving institutions.
Notable Contributions from Other Billionaires
The list of billionaires supporting HBCUs includes prominent figures such as Michael Jordan and Jay-Z, both of whom contributed in 2021. Oprah Winfrey has also been a long-time supporter, with her first donation of $12 million to Morehouse College in 1989. Her total contributions to the institution have reached approximately $25 million over the years.
These donations have played a crucial role in funding student housing, supporting journalism programs, and alleviating student loan burdens. Wayne A. I. Frederick, interim president of Howard University, emphasized the transformative power of these contributions: “We’re providing opportunities to people who might not otherwise have access to higher education. You’re not just changing their lives; you’re helping create generational wealth for families who have never had that access before.”
Scott’s latest donation to Howard is the largest single gift the university has ever received, following a $40 million contribution in 2020 and an additional $12 million in 2023. Howard University plans to allocate a significant portion of the new funds to bolster its student body, with $17 million designated for a new academic medical center.
Addressing Financial Disparities at HBCUs
While these donations are substantial, they highlight a persistent issue in funding disparities. According to reports, the endowments of public HBCUs were approximately 50% of their non-HBCU counterparts as of 2021. The gap is even wider for private institutions, where HBCUs’ average endowment per full-time student is around one-fifth that of private non-HBCUs.
Despite the generosity of these billionaires, many continue to direct their philanthropic efforts to elite institutions with already robust funding. For example, billionaire Ken Griffin has pledged over $500 million to Harvard University, while the widow of investor David Gottesman committed $1 billion to cover tuition for all future students at the Albert Einstein College of Medicine.
The recent surge in donations is crucial for HBCUs, allowing them to strengthen endowments, expand research opportunities, and reimagine their futures. Smith’s Student Freedom Initiative, which received $150 million from Cisco, exemplifies this trend by providing loans to students at various institutions, thereby easing educational debt burdens.
As these philanthropic efforts continue to grow, the impact on HBCUs and their students could be transformative, providing pathways to education and opportunities previously unavailable to many families. The ongoing support from influential figures not only underscores the importance of HBCUs but also reflects a collective commitment to fostering equitable access to higher education for all.
