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Home » Opinion: The Financial Reality of Black Organizations: A Call for Strategic Change
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Opinion: The Financial Reality of Black Organizations: A Call for Strategic Change

TreBy TreFebruary 24, 202574 ViewsNo Comments2 Mins Read
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Opinion: The Financial Reality of Black Organizations: A Call for Strategic Change
[UPDATE: Edited the table with more recent numbers, corrected other errors, and included net unrealized gains (losses) as part of the Investment Returns calculation] Currently researching the financial positions of large, notable Black organizations (NAACP, Urban League, NSBE, all the NPHC organizations, NBMBAA, UNCF, etc.) as well as HBCU endowments. I promise I'm not trying to be confrontational; in fact, this is an offer to help. Also, I'm sure there are people who don't know this who should because they're in a position to do something about it or understand it but don't realize it's not just their organization. Clearly, there's something systemic going on here, so I'm not blaming any individuals. The lack of resources is real, which is why we need reparations. But even without reparations, there's plenty we can do. The combined assets of all the organizations listed below is indeed relatively small, but the more serious problem is around allocation. I will post this table and direct your attention to the Investment Income as a percentage of Cash/Investments. Anyone with any basic understanding of finance will see the problem. However, Alpha Phi Alpha Fraternity and The Executive Leadership Council (ELC) are notable positive standouts here. I'm also fairly certain that some organizations on this list don't track this basic calculation and have it as a KPI. In terms of fiscal sustainability, it is the most crucial number, along with Investment Income as a percentage of Total Revenue, which all organizations are failing on. The situation with HBCU endowments isn't much better, but it's harder to get detailed numbers about them so I'll save that for another post. That said, if you are in a leadership position in any of these organizations, have already identified this problem, but are having trouble finding or selling the solution to the board or whoever is in the way, feel free to use me as an "expert witness" to help make your case.

(TULSA – February 24, 2025) – I’m currently researching the financial positions of major Black organizations—including the NAACP, Urban League, NSBE, NPHC organizations, NBMBAA, UNCF, and others—as well as HBCU endowments. My intent isn’t to be confrontational; rather, this is an offer to help. Many people in leadership roles may not fully grasp the broader systemic challenges at play, and it’s important to recognize that these financial struggles aren’t isolated to individual organizations.

The reality is that resources are limited, underscoring the need for reparations. However, even without them, there’s a lot we can do. While the combined assets of these organizations may seem relatively small, the bigger issue lies in allocation. I’ll be sharing a table that highlights Investment Income as a percentage of Cash/Investments—a key indicator of fiscal sustainability. Anyone with a basic understanding of finance will immediately recognize the problem. That said, Alpha Phi Alpha Fraternity and The Executive Leadership Council (ELC) stand out as positive examples.

It’s also likely that some organizations aren’t tracking these metrics or considering them as key performance indicators, despite their significance. Another critical measure is Investment Income as a percentage of Total Revenue, an area where all these organizations are underperforming.

The situation with HBCU endowments is similarly concerning, but detailed financial data is harder to obtain—so I’ll address that in a future post. If you’re in a leadership position within one of these organizations, are aware of these challenges, and need support in making the case to your board or other decision-makers, feel free to use me as an “expert witness” to help advocate for necessary changes.

Opinion: The Financial Reality of Black Organizations: A Call for Strategic Change
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