Philanthropist MacKenzie Scott has once again provided substantial donations to Historically Black Colleges and Universities (HBCUs), distributing hundreds of millions of dollars. These unrestricted funds are arriving at a critical time for institutions that have historically faced underfunding. Leaders at these universities are planning to use the money for endowments, technology upgrades, new research initiatives, and student scholarships, aiming to create long-term stability and opportunity.
Key Takeaways
- MacKenzie Scott has donated hundreds of millions to HBCUs.
- Funds are largely unrestricted, allowing institutions flexibility.
- Donations support endowments, technology, research, and scholarships.
- Many HBCUs are using funds to address long-term underfunding issues.
- Gifts are seen as transformational for student opportunities and institutional growth.
Unrestricted Gifts Provide Crucial Flexibility
The latest round of donations from MacKenzie Scott marks another significant investment in HBCUs. These gifts are particularly notable because they are largely unrestricted. This means universities have the freedom to allocate the funds where they see the greatest need, rather than being tied to specific programs or projects.
Brent Swinton, vice president for philanthropic engagement at Bowie State University, highlighted the rarity of such gifts. He described unrestricted grants as the "unicorn" or "white whale" of fundraising. This flexibility allows institutions to address immediate challenges and invest in long-term strategic goals.
Scott, the former wife of Amazon founder Jeff Bezos, committed in 2019 to give away half of her wealth during her lifetime. Her philanthropic efforts have consistently focused on institutions and nonprofits that are often underresourced, including HBCUs. Since 2020, her contributions to educational institutions and other nonprofits have exceeded $1 billion.
Recent Major Donations to HBCUs:
- Howard University: $80 million
- Virginia State University: $50 million
- Alcorn State University: $42 million
- University of Maryland Eastern Shore: $38 million
- Spelman College: $38 million
- Clark Atlanta University: $38 million
- Alabama State University: $38 million
- Morgan State University: $63 million (largest individual gift in its history)
Investing in Endowments and Student Support
HBCU leaders are strategically deploying these new funds. Many are prioritizing strengthening their endowments, which provide a stable, long-term financial foundation. Morgan State University, for example, allocated $60 million of its $63 million gift to its unrestricted endowment. University President David K. Wilson anticipates this investment will generate an additional $4 million to $5 million annually for the university and its students.
Beyond endowments, immediate student needs are also being addressed. Wilson set aside $1 million from Morgan State's donation to assist students facing severe financial hardship. The university reached out to 2,100 students, and already, 600 have requested funding to help them complete the current semester.
Interim Howard University President Wayne A. I. Frederick noted that students are affected by federal policy changes, including delays in food benefits and family members experiencing layoffs or furloughs. Howard plans to use part of its $80 million gift to provide temporary relief to students impacted by these issues.
"Unrestricted gifts are the unicorn, the white whale of the fundraising industry."
Advancing Research and Technology
A significant portion of the donations is also directed towards enhancing academic programs, research capabilities, and technological infrastructure. Morgan State University plans to establish a new brain science research center. This adds to other research centers, like the National Center for the Elimination of Educational Disparities and the Center on Urban Health Equity, which were bolstered by a previous $40 million grant from Scott in 2020.
These centers are staffed by faculty members conducting original research from perspectives that understand community challenges. Wilson partly credits Scott's gifts for Morgan State's proximity to achieving R-1 status, a classification for universities with very high research activity.
Howard University, which recently became the only HBCU to attain R-1 status, is allocating about $17 million of Scott's donation to its College of Medicine. This will support expansion and the establishment of a new academic medical center. Howard also plans capital construction and renovation projects, including new residence halls.
The Importance of HBCUs
Historically Black Colleges and Universities (HBCUs) have played a crucial role in American higher education for over 150 years. Established primarily before 1964 to serve the Black community, they have provided educational opportunities when many other institutions did not. Today, HBCUs continue to be vital in educating a diverse student body, fostering cultural identity, and producing leaders across various fields. Despite their historical significance and ongoing impact, many HBCUs have faced chronic underfunding compared to predominantly white institutions.
Preparing for Future Challenges
The flexibility of these gifts allows institutions to prepare for an uncertain future in higher education. Spelman College's interim president, Rosalind Brewer, emphasized how the $38 million donation provides crucial flexibility amidst federal policy changes impacting institutions.
Spelman plans to use some of the funds for new scholarships, specifically for juniors and seniors. These students often rely on Parent PLUS loans, which will face new caps starting next year due to the One Big Beautiful Bill Act. The goal is to close financial gaps and help these students complete their degrees.
The college is also investing in classroom technology, including tools to teach artificial intelligence skills. This aligns with a technology roadmap Spelman released recently. Brewer stated that an unrestricted gift allows the college to apply funds where they best support the strategic plan, making the donation "a lot more generous than most people would realize."
- Spelman College previously used a $20 million gift from Scott in 2020 for student scholarships and its endowment.
- The United Negro College Fund (UNCF) received $70 million from Scott for its capital campaign, which will create a pooled endowment for 37 private HBCUs.
Lasting Impact from Previous Gifts
HBCUs that received donations from MacKenzie Scott in previous years are already seeing lasting benefits. Bowie State University invested $22.5 million of its $25 million gift in 2021 into its endowment. At that time, the endowment stood around $8 million. Four years later, it has grown to more than $49 million, thanks to Scott's gift and subsequent donations that followed her "vote of confidence."
Swinton noted that building endowments has been a long-standing challenge for many HBCUs. He explained that "Endowments are not sexy, but they are lifeblood and the nest egg for an institution." He also pointed out that the combined endowments of all 103 HBCUs still do not match the top 10 endowments of predominantly white institutions.
Bowie State used the remaining $2.5 million to apply for matching grants from other philanthropies, opportunities it previously lacked the funds to pursue. One such partnership led to the creation of its first endowed chair position in cybersecurity and innovation. This provides a permanent funding source, reducing reliance on state budgets.
Howard University also feels the lasting impact of past gifts from Scott, totaling $40 million in 2020 and $12 million in 2023. These funds helped establish the Toni Morrison Endowed Chair in Arts and Humanities. Howard also created a $500,000 scholarship for graduates of the University of District of Columbia, a local HBCU, to attend Howard's graduate and professional programs. Frederick praised Scott's approach, saying it provides "a lot of freedom to do what we need to do."
