Black Schools Tap New Funding Source

Faced with shrinking budgets, an increasing number of publicly funded historically black colleges and universities (HBCU) are turning to older, successful alumni. "There's a new recognition that there is wealth out there in the Black community and that the colleges have a strong claim on it," said Michael Lomas, president of the United Negro College Fund.
"There are large numbers of baby boomers that went to Black colleges. Over the next 20 to 30 years, they are going to be part of the wealth transfer," he said. Who or what is a baby boomer? Following World War II, the U. S. and other countries experienced an unusual spike in birth rates, a phenomenon commonly known as the baby boom; persons born between 1945 and 1964.

Black colleges are expanding their fundraising offices to tap a network of aging alumni, according to administrators at historically black schools. The colleges are encouraging donors to include their campuses in estate planning or in life insurance policies. Fundraising has often ranked low on the list of priorities for many Black schools, particularly for public schools dependent on state and federal funds. However, as education costs soar and government budgets shrink or stagnate many such schools are now doing what their private counterparts and larger, majority White institutions have done for decades.

In 2007 Morgan State completed its first capital campaign, raising $31 million. Prior to the drive, the school used telemarketers to call alumni. Now the school plans to actively woo alumni at homecoming, commencement and other events.