THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, October 28, 1995 TAG: 9510280303
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY PHILIP WALZER, STAFF WRITER
DATELINE: HAMPTON LENGTH: Medium: 58 lines
Hampton University's endowment has surpassed $100 million, university officials announced Friday, placing the school among the more richly endowed colleges in Virginia.
``For eighteen years, I have taken the position that the university's goals are educational, but the operations must be run like a business,'' said President William R. Harvey, who joined Hampton when its endowment was $29 million.
``As my mother said, `If you've got a dollar, you can't go to the store and spend $1.25.' ''
Only two other historically black schools have larger endowments than Hampton: Howard University in Washington, with $132 million, and Spelman College in Atlanta, with $110 million.
Sandy Urie, chief operating officer for Cambridge Associates Inc., an investment consulting firm employed by Hampton, confirmed Friday that the university's endowment now stands at $102 million.
In a national ranking of university endowments last year, Hampton came in at No. 183, with $86 million. With the new amount, it would place 163rd.
The ranking, compiled by the National Association of College and University Business Officers, lists six other Virginia universities with nine-digit endowments: the University of Virginia, at $724 million; Washington & Lee University, $292 million; Virginia Tech, $165 million; Regent University, $161 million; the College of William and Mary, $124 million; and Virginia Military Institute, $123 million.
Regent was the only local university with a larger endowment than Hampton. The bulk of Regent's endowment came from a $117 million gift from the Christian Broadcasting Network in 1992.
Old Dominion University has a $28 million endowment and Norfolk State University $4.5 million.
Colleges use the income from their endowments for a variety of purposes. But they generally don't touch the principal unless there is an emergency.
At Hampton, the interest goes for such items as scholarships, faculty salaries and academic programs.
``It is an important piece of the overall income,'' said Leon Scott, vice president for business affairs. ``It helps to keep tuition down.''
Because private universities get no state funding, ``their bread is buttered with endowment,'' said Anne H. Moore, associate director of the State Council of Higher Education in Richmond. ``That's the only thing that keeps them from going through the hole.''
Donald J. Finley, another associate director of the agency, said, ``It gives any institution, public or private, a margin for several things. Suppose enrollment drops. Suppose they want to initiate new programs. It just allows them to do things and to have flexibility that, without it, they wouldn't have.'' by CNB