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[[line]] [[image - logo of the Robert R. Moton Memorial Institute ]] THE ROBERT R. MOTON MEMORIAL INSTITUTE [[line]] THE ROBERT R. MOTON MEMORIAL INSTITUTE, organized in 1958 as a non-profit organization, is dedicated to strengthening the quality of higher education in minority institutions. Named for the distinguished black educator and second president of Tuskegee Institute, the organization renders technical services to those colleges which historically have provided opportunities to large numbers of economically disadvantaged students. The first component of the Institute was the Moton Conference Center in Capahosic, Gloucester County, Virginia. For 23 years it has been a retreat where leaders in education, business and race relations have met for serious policy discussions affecting the lives of minorities. In the early sixties it became apparent that, if small colleges were to continue their mission of providing an education for thousands of students from needy families, urgent attention would have to be given to improving their financial resources and fiscal management. These needs are critical to the survival of the colleges. To alleviate these conditions, the Alfred P. Sloan Foundation sponsored a multi-year project in development and fiscal management by making a matching grant available to 30 predominantly black colleges. To implement this effort, the Moton Institute was requested to serve as the organization to conduct a series of seminars for college trustees, presidents, development and fiscal officers. This project, known as the Cooperative College Development Program, was the beginning of the Institute's long years of service as an assisting agency to small colleges. Subsequently, Moton Institute initiated training programs in admissions and financial aid, development and endowment training, federal relations, long-range planning, evaluation and management. The staff of the Moton Institute, originally housed in Washington, D.C., was relocated to the Conference Center in 1980, thereby making the Center the central headquartes of the Moton Institute. Training seminars for colleges are held both at the Center and on college campuses. The College Endowment Funding Plan is administered from New York City, while the Recruitment Consortium project is housed in Philadelphia. A brief description of current programs found on the reverse side of this leaflet shows the wide range of administrative, financial, faculty and student services. Today the Robert R. Moton Memorial Institute continues its valuable services by assisting small colleges in their quest for quality education. The College Endowment Funding Plan (CEFP), inaugurated in May 1978 with a group of 6 colleges and 9 insurance companies, has experienced dramatic growth since its inception. To date, 5 groups representing 19 colleges with 33 units are participating in the Plan. The number of insurance companies has grown to 21. Colleges affiliated with the United Negro College Fund (UNCF) are eligible for participation. CEFP is an innovative method of building endowment for small colleges. A college raising $300,000 in gift money is given a bonus of $50,000 by UNCF. These funds are combined with a loan of $400,000 from the insurance industry to form an investment package of $750,000 for a 25-year period. During the life of the investment, earned income provides funds for yearly operating expenses for the college. Insurance companies through their program of Corporate Social Responsibility make loans available at a discount below the investment rate (the present spread is 2%), thereby making it possible for the principal to generate a margin of surplus investment income. A significant feature of CEFP is that only interest is paid on the loan for the first fifteen years and the loan is retired at the rate of 10% during the final ten years of the investment. By January 1, 1982, a funding mechanism of $68.9 mission in endowment was firmly in place for the 19 colleges. The institutions will have used $29.1 million in operating expenses at the end of the 25-year period or maturity of the endowment. Total endowment and budget funds will amount to over $98 million. Institutions participating in the College Endowment Funding Plan as of January 1, 1982: Benedict College (6 units) Bennett College Bishop College Claflin College Dillard University (2 units) Fisk University Lemoyne-Owen College Livingstone College Oakwood College Rust College (3 units) Saint Augustine's College (4 units) Talladega College Tougaloo College Tuskegee Institute (3 units) Virginia Union University Vorhees College (2 units) Wilberforce University Xavier University Paine College The Director of the Plan, as well as its architect, is Dr. Frederick D. Patterson, former Chairman of the Robert R. Moton Memorial Institute. He urges colleges interested in endowment development to take advantage of the excellent returns now possible from treasury and high quality corporate bonds. These income values many not be possible later. For further information write or call: Dr. Mabel P. Phifer, President, The Robert R. Moton Memorial Institute, P. O. Box 1070, Gloucester, Virginia 23061 Telephone: (804)693-4480
