million grant to help increase endowments for# historically Black c The donation from Lilly Endowment is the# single largest unrestricted private grant## the organization has ever received# in its 80-year history.

And its sole## purpose is to increase funding for# each of its 37-member institutions.

We're joined now by Michael# Lomax, president and CEO of UNCF.

Dr. Lomax, thank you so much for being here.

MICHAEL LOMAX, President and CEO, Unite GEOFF BENNETT: You have called this $100# be cause, until now, historically# Black colleges and universities## haven't had shared endowments.

How do# you intend to leverage this MI CHAEL LOMAX: First of all,# there is a big issue here.

HBCUs' endowments are significantly lower than# their non-HBCU peers.

If you of all 102 HBCUs, you get to about $4 billion.# Harvard's got a $50 billion endowment.

So we## have really got to close that gap.

We have got# to close the wealth gap for these institutions.

And a handful of the institutions keep getting all# the money because they're their well-known brands.

Morehouse, where you and I went to college... (LAUGHTER) MICHAEL LOMAX: ... and Howard and Spel and it's -- but there are And so one of the ways we felt that we could# begin to break that cycle, but help everybody,## was by creating a pooled endowment for the 37# members, private institutions that are members of## UNCF.

So we're going out and raising the money.# And we just got this $100 million from Lilly,## which will become the foundation# for a $370 million pooled endowment.

And why a pooled endowment?

Well, a pooled# endowment because when you -- if you have## a $10 million endowment, you can't make really# good investments.

But if you have $370 million## to invest, you can get professionals# to work with you on it.

And, over time,## that endowment will grow, because we're not# going to let anybody take the money out,## only spend a certain percentage of it every year# that they have earned in the prior 12 months.

GEOFF BENNETT: And HBCUs, it's# fair to say, punch above their## weight.

They represent 3 percent of# all institutions o yet produce nearly 20 percent of Black college# graduates, 40 percent of Black engineers,## 50 percent of Black lawyers, 50 percent of# Black doctors, 80 percent of Black judges.

(LAUGHTER) MICHAEL LOMAX: Yes.

Yes.

especially in light of the Supreme Court# striking down the use of affirmative action## in college admissions and the conservative# backlash to teaching about race in schoo MICHAEL LOMAX: Yes.

Long overdue that they should get the# recognition that they're getting today.

Yes, they're getting more attention and# more young people want to attend these## institutions.

But what we have to realize is# that the students who come most to HBCUs are## low-income first-generation students.

And so they# really have to have additional financial support## in order to cover the costs of attending a# private institution or even a public one.

So we're trying to say to this country,# Black colleges and their students don't## want a handout.

They want a hand# up.

They want someone to help them## by investing in them, and then there will# be a tremendous return on the investment.

You used the term that we use all the time,# punching above their weight.

They h that, and they have been doing more with less.# It's about time they got to do more with more.

GEOFF BENNETT: The higher enrollment presents# some challenges for these institutions.

MICHAEL LOMAX: Yes.

facilities and their infrastructure to stay# competitive and to keep pace with the demand.

What are you hearing from college leaders about# how they're dealing with those challenges?

(LAUGHTER) you have to spend a whole lot of time doing# what I do, going out and raising money.

And at the same time, they have got to# ensure that they're doing what their## primary purpose is, and that is to provide# a competitive education for young people,## and to do it in a supportive# and embracing environment.

We saw recently in the issues around -- since# October 7 that this isn't just something that## affects Black students.

It really affects# a lot of other students, Jewish students,## on predominantly white campuses, a sense# that their -- these institutions are not## really there for them, that they're there# on sufferance, as opposed to on merit.

And I think there's a real challenge for a lot of# American higher education, that they have become## so exclusive that the people that they're there# to serve don't feel a sense of connection.

So what## we know about HBCUs is that they do create# warm, supportive, nurturing environments.

And those first-generation Black students# whose families don't have a lot of tradition## of sending people to college and# they're not viewed as outsiders,## they're viewed as the reason# for the institution.

Given that,## there's a real challenge for us to raise# more dollars to support more students.

And that's why endowments are so important.

Now,## I would just say something about this.

We# have a $1 GEOFF BENNETT: Where are you in that pursuit?

MICHAEL LOMAX: We're at GEOFF BENNETT: OK. think there is a greater understanding# of the value of the work that we do.

The $100 million from Lilly Endowment# is a -- it's a Good Housekeeping Seal## of Approval.

I just need to raise# another $450 million and I will## meet my floor.

But it is just that.# It's a floor.

It's not a ceiling.

GEOFF BENNETT: Well, I wish you# all the best in that endeavor.

Dr. Michael Lomax, thanks so much for b MICHAEL LOMAX: Thank you very much,#