Many Black colleges have secured dollars for a variety of important initiatives, but one of the hurdles is just knowing which funding streams to tap.
Like many institutions of higher education, historically Black colleges and universities (HBCUs) face the financial challenge of addressing faculty, student and infrastructure needs while maintaining affordable tuition. The good news is that there are a number of federal funding opportunities available to help. Some of these opportunities are specifically aimed at HBCUs, while others are offered to HBCUs and other institutions of higher education. On the federal level, Congress appropriates funds, commonly known as “earmarking,” that go directly to projects and programs important to HBCUs. As an example, in fiscal year 2008, Congress appropriated $731,000 for the recruitment and training of nursing assistants at Dillard University.
Congress also funds competitive programs that HBCUs are eligible for, including grant programs (discussed later) and the New Market Tax Credit (NMTC) program offered by the Department of Treasury. The NMTC program was established to help fund valuable infrastructure projects, including those associated with colleges and universities. In 2003, the NMTC program awarded $38 million in tax credits to help Rutgers University, The State University of New Jersey promote its new business school, and $35 million in tax credits to help The Ohio State University revitalize the urban neighborhoods around its Columbus campus. This was on top of funding provided by selected private foundations and by public-private partnerships. Morehouse College received $4 million from the Kellogg Foundation, starting in 2005, for the development of a new model for eliminating racial and ethnic disparities in health care.
Yet surprisingly, many HBCUs are not taking full advantage of these funding opportunities. This may be because of a lack of awareness about funding options or inadequate staffing levels in-house to pursue them. Or, some HBCUs may simply be reluctant to seek the help of Washington-based law and consulting firms because of anticipated costs. This is unfortunate, perhaps even shortsighted, because a creative approach that looks at all funding opportunities — even those not directed specifically toward HBCUs — can uncover many valuable programs that will help HBCUs achieve their goals.
