Dr. Michael Lomax, President and CEO of the United Negro College Fund

UNCF Operational History and Scale

• Founded 76 years post-WWII by leaders of Tuskegee Institute and Mary McLeod Bethune with initial capital of $750,000 from John D. Rockefeller Jr.
• Has raised over $5 billion since inception, providing scholarships to approximately 500,000 students.
• Currently supports 101 Historically Black Colleges and Universities (HBCUs), serving 250,000 students with an annual economic impact of nearly $15 billion.
• Projects that every graduating class across these institutions generates over $134 billion in lifetime earnings.

Strategic Shifts and Methodology

• Originated as an institutional funder for underfunded HBCs before shifting in the 1970s to direct student scholarships following the "A mind is a terrible thing to waste" slogan.
• Now functions as the second-largest provider of scholarships to African Americans, following the federal government.
• Core operational philosophy focuses on converting "undeveloped human capital" into market-ready assets, prioritizing first-generation and low-income students.
• Enforces a "reach back and lift up" expectation where recipients of aid must contribute to their communities upon career advancement.

Workforce Preparation Initiatives

• Addresses the gap in Black entrants to finance and technology sectors by prioritizing experiential learning and internships over purely classroom-based education.
• Currently engaging 300 students virtually in Silicon Valley to prepare for upcoming corporate internship interviews.
• Seeking corporate partnerships to fund preparation pipelines for diverse talent entering non-academic work environments.

Financial Impact of 2020 Crises (COVID-19 and Racial Reckoning)

• In March, executed a decision to cancel all gala events, move operations virtually, and cut the operating budget by one-third while retaining all staff through salary reductions.
• Post-George Floyd (late May/June), shifted strategy to treat the moment as an "extraordinary opportunity," raising over $100 million in support within three months.
• Secured a $40 million pledge from donors Reed Hastings and Patty Quillen to fund full scholarships at Morehouse and Spelman; allocated $6 million in Year 1 to provide $5,000 scholarships to 1,200 students to ensure fall enrollment retention.
• Projected a 20% enrollment loss across HBCUs due to the pandemic; actual decline tracked at 3–5% due to targeted crisis management and reopening support.

Funding Disparities and Capital Goals

• Highlights that 75% of UNCF students are low-income and Pell Grant-eligible, yet the federal Pell Grant covers only 25% of college costs.
• Compares the aggregate endowment of 101 HBCUs (under $4 billion) to Harvard's endowment ($40 billion), noting a tenfold disparity relative to HBCU scale.
• Sets a capital campaign goal to grow the UNCF endowment from $100 million to $6 billion, with an initial target of $1 billion to close the endowment gap.
• Aims to prevent students from graduating with debt levels approaching $40,000 by increasing non-loan scholarship resources.

Student Experience and Institutional Resilience

• Polls of 5,000 students indicate a strong desire to return to campus, citing the need for quiet study spaces, Wi-Fi access, and a secure environment absent in many home settings.
• Recognizes significant barriers for students returning home, including caregiving responsibilities, job obligations, and lack of technological infrastructure.
• Frames the current crisis as a catalyst for building a "resiliency generation," aiming to ensure persistence and completion rates remain high despite systemic and health-related shocks.