Beyond Brotherhood: The Rich Legacy of Black Fraternities

Image of a purple sports coat with the Omega Psi Phi Fraternity, Inc. coat of arms stitched on the front

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Governor Murphy greets the fraternity brothers of Omega Psi Phi for Omega Day in the New Jersey State House on Thursday, May 25, 2023. (Jake Hirsch/NJ Governor’s Office).” by GovPhilMurphy is licensed under CC BY-SA 3.0

Key Takeaways:

  • A Black fraternity is a Black Greek organization at a higher education institution, such as a Historically Black College or University (HBCU).
  • The five Black fraternities are known as the Divine Nine and include Alpha Phi Alpha Fraternity, Inc.®, Kappa Alpha Psi® Fraternity, Inc, Omega Psi Phi Fraternity, Inc., Phi Beta Sigma Fraternity, Inc. and Iota Phi Theta Fraternity, Inc.®
  • Black fraternities are important because they provide a sense of brotherhood and community service and mentorship opportunities for Black students, among other things.

Black fraternities in the U.S. hold a rich history and provide a sense of solidarity, pride and belonging for their members. Yet, the creation of the nine Black fraternities and sororities that make up the National Pan-Hellenic Council (NPHC), or the Divine Nine, stems from exclusion. For decades, Black men were excluded from predominantly white collegiate social organizations. Students from Historically Black Colleges and Universities (HBCUs) and other higher education institutions in the 20th century took a stand and created their own organizations. Now, the Divine Nine boasts members who are changemakers, executives, leaders, entertainers and prominent sports figures.

Here, we dive into the definition of a Black fraternity, the history of Black Greek fraternities and how these Greek-lettered organizations help young Black men grow as philanthropists and in professional spaces. We also discuss the fraternities within the ranks of the Divine Nine.

What Is a Black Fraternity?

Historically, black fraternities are members-only Black Greek-letter organizations at higher education institutions that predominantly recruit Black college students. They focus on key principles, including scholarship, mentorship, perseverance and brotherhood. These organizations also uphold tenets like personal excellence, civic action and community engagement. Additionally, Black fraternities may have advocacy-based programs centered on such areas as voter education and registration, reading, education and professional development.

Why Are Black Fraternities Important?

Black fraternities are important because their existence is rooted in a time of critical racial strife in the U.S., when equality was absent on many college campuses, giving a place for Black students to unite on the same personal and educational mission. The founders of these organizations saw it necessary to bring Black students together to participate in social causes and activism, provide support, build long-lasting friendships and work toward a brighter academic future.

These culturally significant fraternities also create legacies in families — with family members of different generations pledging the same fraternities, sometimes decades apart.

Black fraternities have strong ties to philanthropy, giving both time and financial assistance to charitable organizations, such as March of Dimes, Head Start, Boy Scouts of America, the American Cancer Society, the United Negro College Fund, the National Association for the Advancement of Colored People (NAACP), Thurgood Marshall Scholarship Fund, the Leadership Conference on Civil Rights, Urban League and Habitat for Humanity.

A Brief History of the Divine Nine

Starting in the early 1900s, the Divine Nine fraternal organizations were established as fellowship opportunities for Black students on college campuses when other fraternities and sororities were unwelcoming. A look at the history of Black fraternities and sororities shows us their work in social activism and how the organizations offered a space for students to embrace Black culture and much more. Today, the organizations have outreach and humanitarian programs and charitable foundation arms that provide local communities with much-needed assistance.

Over the years, historically Black fraternities and sororities, including Alpha Kappa Alpha Sorority, Inc.®, founded by Ethel Hedgeman Lyle, have adopted Black historical and cultural traditions. This includes call and response, strolling (a dance patterned in a straight line and performed to music) and stepping (a type of syncopated movement exclusive to each organization) as part of their organization’s customs.

Sisterhood thrives in the Black sororities of the Divine Nine. These sororities include:

  • Alpha Kappa Alpha Sorority, Inc.
  • Delta Sigma Theta Sorority, Inc.
  • Sigma Gamma Rho Sorority, Inc.
  • Zeta Phi Beta Sorority, Inc.

What Are the Five Black Fraternities of the Divine Nine?

Founded between 1906 and 1963, the five Black Fraternities of the Divine Nine are:

  • Alpha Phi Alpha Fraternity, Inc.
  • Kappa Alpha Psi Fraternity, Inc.
  • Omega Psi Phi Fraternity, Inc.
  • Phi Beta Sigma Fraternity, Inc.
  • Iota Phi Theta Fraternity, Inc.

Each fraternity in the Divine Nine has its own colors, symbols and membership qualifications, including demonstration of community service. Membership in a Divine Nine fraternity or sorority is lifelong. Today, there are close to 2 million members in the Black fraternities and sororities that make up the National Pan-Hellenic Council.

The following is more about the five Black fraternities that make up the Divine Nine.

1. Alpha Phi Alpha Fraternity, Inc.

Founded in 1906, Alpha Phi Alpha Fraternity, Inc. is considered the first black fraternity, tracing its roots to the Cornell University campus in Ithaca, New York. Alpha Phi Alpha Fraternity, Inc. was founded by seven Cornell students, who are now celebrated as the seven jewels of the fraternity. The founding members of Alpha Phi Alpha Fraternity, Inc. were Charles Henry Chapman, Vertner Woodson Tandy, Henry Arthur Callis, Robert Harold Ogle, George Biddle Kelley, Nathaniel Allison Murray and Eugene Kinckle Jones.

The first intercollegiate Greek-letter fraternity was conceived out of the need for a study group and support system for students of color during a time when racial discrimination was prevalent on campus. From there, the fraternity’s principles evolved — with fellowship, uplifting humanity, good character and scholarship as its pillars.

Chapters across the Alpha Phi Alpha Fraternity, Inc. are required to take part in its community outreach initiatives, including:

  • Brother’s Keeper
  • A Voteless People is a Hopeless People (VPHP)
  • Go-to-High-School, Go-to-College
  • Project Alpha™

Other initiatives the fraternity has affiliated with include Boy Scouts of America, Leadership Development Institute (LDI), Peace Corps, College Life to Corporate Life Initiative (C2C) and Big Brothers/Big Sisters of America.

Alpha Phi Alpha Fraternity, Inc.’s foundations are the Alpha Phi Alpha Education Foundation, the Alpha Phi Alpha Charitable Foundation, the Alpha Phi Alpha Building Foundation and the Jewels Heritage Project.

Alpha Phi Alpha Fraternity, Inc. is the only Divine Nine fraternity founded at an Ivy League institution. Famous members include Dr. Martin Luther King, Jr., Raphael Warnock, W.E.B. Du Bois, Thurgood Marshall, Robert F. Smith and Jesse Owens.

The fraternity became interracial in 1945.

2. Kappa Alpha Psi Fraternity, Inc.

Temporarily deemed Alpha Omega, Kappa Alpha Psi Fraternity, Inc. was founded at Indiana University Bloomington, a predominately white institution. At the time, Black students were prevented from accessing social and other recreational amenities on campus.

Founders Elder Watson Diggs and Byron Kenneth Armstrong, who initially attended Howard University in Washington, D.C., wanted to create a space for Black students at the college to foster camaraderie in a place teeming with racial inequity and tension.

The original charter members of the fraternity, alongside Diggs and Armstrong, included Henry T. Asher, Guy L. Grant, George W. Edmonds, Edward G. Irvin, Marcus P. Blakemore, John M. Lee, Ezra D. Alexander and Paul W. Caine. Diggs, Lee and Armstrong soon became the fraternity’s chairman, secretary and sergeant-at-arms, respectively.

The organization then became known as Kappa Alpha Nu in 1911 and was the first incorporated Black fraternity in the U.S. Four years later, the fraternity was officially renamed Kappa Alpha Psi.

The fraternity’s foundation is based on achievement and philanthropic work, including mentorship and providing college scholarships. The organization has raised funds for St. Jude Medical Research Hospital®. Additional initiatives are Guide Right, Achievement Academy, LEAD Kappa and Room to Read®.

The Kappa Alpha Psi® Foundation was established in 1981 and offers program support and advocacy for youth in underserved communities in the U.S.

Today, chapters are present at colleges and universities across the U.S. and globally in countries such as Bermuda, United Kingdom, Nigeria and Canada.

Famous Kappa Alpha Psi members are Tom Bradley, Ralph Abernathy, Bernard A. Harris Jr. and Marquise Goodwin.

Kappa Alpha Psi members are affectionately known as Nupes.

3. Omega Psi Phi Fraternity, Inc.

Omega Psi Phi Fraternity, Inc. was founded at Howard University, one of the top HBCUs in the country, in 1911. It was the first Divine Nine fraternity founded on an HBCU campus.

The undergraduate student founders included Frank Coleman, Oscar James Cooper and Edgar Amos Love. In November 1911, the three took on the official titles of National President (Love), National Secretary (Cooper) and National Treasurer (Coleman). Dr. Ernest Everett Just served as the organization’s faculty advisor.

Other chapters of the organization soon followed in Pennsylvania; Boston, Massachusetts; and Nashville, Tennessee.

The fraternity’s four guiding principles are:

  • Manhood
  • Scholarship
  • Perseverance
  • Uplift

Programs and initiatives under the organization include Brother, You’re On My Mind; the Dr. Moses C. Norman Sr. International Leadership Conference; Grand Conclave; OmegaSTEM; Talent Hunt; and the Omega 1911 Project™.

The organization is well-known for the Que Hop, a dance performed to Atomic Dog by George Clinton of George Clinton and the P-Funk All Stars fame. The official colors of the fraternity are purple and gold.

Famous members of the Omega Psi Phi Fraternity are Dr. Charles Drew, Reverend Jesse Jackson Sr., Tom Joyner, Charles Bolden Jr., Michael Jordan, Guion Bluford and Hank Aaron.

4. Phi Beta Sigma Fraternity, Inc.

With close to 600 active chapters, Phi Beta Sigma Fraternity, Inc. has celebrated over 100 years of brotherhood. The fraternity was founded at Howard University in early 1914 with the principles of brotherhood, scholarship and community service at its helm.

The fraternity’s motto is “Culture For Service and Service For Humanity. Phi Beta Sigma Fraternity, Inc.’s official colors are royal blue and pure white, with the official symbol being a dove.

Phi Beta Sigma Fraternity, Inc. was founded by A. Langston Taylor, Leonard F. Morse and Charles I. Brown, who integrated the “inclusive we” into the fraternity’s beliefs.

Phi Beta Sigma Fraternity, Inc. has four programs:

  • Social Action
  • Education
  • Sigma Beta Club
  • Bigger and Better Business

Incorporated in 1930, notable members of the fraternity, known as Sigmas, are Richard Sherman1, Alain Locke and James Weldon Johnson, musician and author of “Lift Every Voice and Sing” (the Black National Anthem). There have been 225,000 members initiated into the fraternity since its inception.

5. Iota Phi Theta Fraternity, Inc.

Iota Phi Theta Fraternity, Inc. was founded in 1963 at Morgan State University in Baltimore, Maryland. Its purpose: “The development and perpetuation of Scholarship, Leadership, Citizenship, Fidelity and Brotherhood among Men.” The fraternity was officially incorporated in 1968.

Founders of the fraternity were Lonnie Spruill, Jr., Michael Williams, Charles Gregory, Louis Hudnell, Webster Lewis, Charles Brown, Albert Hicks, Charles Briscoe, Barron Willis, John Slade, Frank Coakley and Elias Dorsey, Jr.

Chapters have since been established at Hampton Institute, Delaware State College, Norfolk State College, Jersey City State College and Southern Illinois University.

The fraternity’s philanthropic arms are the National Iota Foundation and the One Iota Foundation, Inc.. The National Iota Foundation was created in 1992 to grant scholarships and lead the Iota Black College Tour. The One Iota Foundation, Inc. was founded in 2022 to help deliver health care initiatives, as well as personal finance and academic education.

Iota Phi Theta Fraternity’s initiatives and partnerships include Ora Lee Smith Cancer Research Foundation, Five Star Vaccine Impact Program for Vulnerable Populations, the American Red Cross and Iota Phi Theta Men’s Health Program.

Well-known members of the fraternity are Terrence Connor (T.C.) Carson, Kendrick Jevon Dean, Bobby L. Rush and Elvin Hayes.

Iota Phi Theta’s motto is “Building a Tradition, Not Resting Upon One!”

Stay up to date with the latest from Smith and the importance of Black fraternities and education by following him on LinkedIn.

Across our Communities

MBE Entrepreneurship & Supplier Diversity

1. Provide technical expertise: offer subject matter and technical expertise to catalyze and support community initiatives 

E.g., tax/accounting experts to help MBEs file taxes

E.g., business experts to help MBEs better access capital and craft business plans to scale their teams and operations

Access to Capital (CDFI/MDI)

2. Fund modernization & capacity-building and provide in-kind subject matter experts – $30M: help 4-5 CDFIs/MDIs over 5 years modernize their core systems, hire and train staff, expand marketing and standup SWAT team of experts to conduct needs diagnostic, implement tech solution & provide technical assistance

Systems and technology modernization – $10M-15M: Add/upgrade core banking systems, hardware and productivity tools, train frontline workforce on new systems & technology and hire engineering specialists to support customization and news systems rollout – over 5 years

Talent and workforce – $10M: hire and train additional frontline lending staff and invest in recruiting, training, compensation & benefits and retention to increase in-house expertise and loan capacity – over 5 years

Other capacity-building and outreach – $8M: hire additional staff to increase custom borrower and technical assistance (e.g., credit building, MBE financing options, etc.) and increase community outreach to drive regional awareness and new pipeline projects – over 5 years

Education/HBCU & Workforce Development

3. Offer more paid internships: signup onto InternX and offer 25+ additional paid internships per year to HBCU/Black students 

Digital Access

4. Issue digital access equality bonds: issue equality progress bonds and invest proceeds into SCI’s digital access initiatives

5. Fund HBCU campus-wide internet – up to $50M in donations or in-kind: Partner with the Student Freedom Initiative to deliver campus-wide high-speed internet at ~10 HBCUs across SCI regions

Advocacy

6. Be an advocate for SCI priorities: engage federal and state agencies to drive policy and funding improvements to better support SCI’s near-term priorities

E.g., Engage the Small Business Administration and Minority Business Development Agency to increase technical assistance programs and annual spend to better support Minority Business Enterprises (MBEs) with capital and scaling needs

E.g., Ask the Federal Communications Commission (FCC) to include multi-dwelling unit connectivity in its new broadband connectivity maps and ask the National Telecommunications and Information Administration (NTIA) to allow non-FCC data in state broadband plans to unlock ~$285M in potential government broadband funding for 5 SCI regions

Directly Fund SCI

7. Invest directly into SCI (coming soon): provide funding for SCI to pool and invest in community initiatives that are most well-positioned for funding and can drive direct community impact.

Memphis, Tennessee

Lead community organization: The Collective Blueprint

MBE Entrepreneurship & Supplier Diversity

Our ambition:

Increase the volume and value of Black-owned businesses – through corporate MBE spend and MBE startups & scaling

1. Scale technical assistance – $15M: fund* to expand technical assistance through business coaches and wrap-around services for 500+ MBEs over 5 years to help them scale from <$1M to $5M+ in annual revenue

2. Standup MBE fund – $15M: standup/scale MBE fund* to offer more flexible access to capital arrangements 400-500 MBEs over 5 years

 * Lead organization: The Collective Blueprint; Contributing local organizations for community strategy include (but not limited to): Community Unlimited, Women’s Business Center South, Epicenter, others

Estimated impact (of all initiatives): 2.3x increase in MBE value & 20K+ new jobs, boosting Black community’s net worth by ~$3B+

Access to Capital (CDFI/MDI)

Our ambition:

Modernize CDFI/MDI systems and tech as well as recruit and upskill talent to increase CDFI/MDI capacity and ability to inject more capital into Black communities

3. Provide loan guarantees – $15M: create a fund* to provide 80% loan guarantees over 5 years to encourage lender participation and inject more capital into the community

4. Conduct advocacy: ask US Treasury & Tennessee State to allow Tennessee CDFIs/MDIs to retain SSBCI capital & offer loan guarantees to boost loan issuance

5. Fund modernization & capacity-building and provide in-kind subject matter experts – $30M: help 4-5 CDFIs/MDIs** over 5 years modernize their core systems, hire and train staff, expand marketing and standup a SWAT team of experts to conduct needs diagnostic, implement tech solution & provide technical assistance

  • Systems and technology modernization – $10M-15M: Add/upgrade core banking systems, hardware and productivity tools, train frontline workforce on new systems & technology and hire engineering specialists to support customization and news systems rollout – over 5 years
  • Talent and workforce – $10M: hire and train additional frontline lending staff and invest in recruiting, training, compensation & benefits and retention to increase in-house expertise and loan capacity – over 5 years
  • Other capacity-building and outreach – $8M: hire additional staff to increase custom borrower and technical assistance (e.g., credit building, MBE financing options, etc.) and increase community outreach to drive regional awareness and new pipeline projects – over 5 years

* Leading organizations for community strategy include (but not limited to): Community LIFT, Memphis CDFI Network, etc.

* In partnership with National Bankers Association and Appalachian Community Capital; CDFIs/MDIs being considered include: Community Unlimited, Hope Credit Union, River City Capital, United Housing Inc, etc.

Estimated impact (of all initiatives): ~$330M+ in additional loans per year to support ~30K+ MBEs

Education/HBCU & Workforce Development

Our ambition:

Lower financial burden for Black students, increase number of Black college graduates, increase Black workforce and executive representation and their access to high-paying jobs

6. Standup training hub – $30M: fund* the establishment a world-class training hub that offers certificate-granting STEM and innovation programs in advanced manufacturing, health care, etc. to 10K+ youths

7. Fund SFI program – $7M: fund the Student Freedom Initiative’s Income Contingent Alternative to Parent Plus to support ~15 Black STEM students per year forever at 4 HBCUs**

* Lead organization: The Collective Blueprint; Contributing local organizations for community strategy include (but not limited to): Greater Memphis Chamber and Workforce Midsouth

** Minority Serving Institutions / HBCUs with STEM programs being considered: Le Moyne-Owen, Baptist Memorial, University of Memphis, Rust College

Estimated impact (of all initiatives): 8K+ additional college graduates and 10K workers with high-paying wages to drive ~$1B+ in economic growth

Digital Access

Our ambition:

Increase accessibility, affordability and adoption of high-speed Internet

8. Accelerate digital access initiatives – $75M: partner with local orgs* to invest in setting up internet connections / installing hotspots, offering laptops and supporting adoption (through government subsidy technical assistance and digital literacy) to connect ~135K homes to high-speed internet in the Memphis region

9. Raise community awareness & adoption of Emergency Broadband Benefit: increase door-to-door and community outreach in low-income neighborhoods to get households onto EBB to help connect ~135K unconnected households 

 * Lead organization: The Collective Blueprint; Contributing local organizations for community strategy include (but not limited to): CodeCrew

Estimated impact (of all initiatives): ~135K households connected to high-speed internet to unlock ~$2B+ in economic potential

Houston, Texas

Lead community organization: Greater Houston Partnership

MBE Entrepreneurship & Supplier Diversity

Our ambition:

Increase the volume and value of Black-owned businesses – through corporate MBE spend and MBE startups & scaling

1. Scale team – ~$3M: hire 3-4 FTEs over 5 years for One Houston Together* to help companies increase MBE spend from ~2% to 5-10%+ as well as BIPOC workforce advancement and BIPOC board representation 

2. Increase MBE certification and scale technical assistance – ~$2M: partner with One Houston Together* and the Houston Minority Supplier Development Council (HSMDC)** to certify additional MBEs, develop Minority Business Finder database tool and provide resources and services to help local MBEs scale and participate in Pathways to Excellence program

3. Commit to increase racial diversity in supply chain and procurement: increase MBE spend in Greater Houston region* to 5-10%+

* One Houston Together serves as lead (please contact if you are interested in funding these initiatives)

** Houston Minority Supplier Development Council (HSMDC) serves as a partner organization (please contact if you are interested in learning more about this initiative)

Estimated impact (of all initiatives): 2.5x increase in MBE value & ~55K new jobs, boosting Black community’s net worth by ~$12B 

Access to Capital (CDFI/MDI)

Our ambition:

Modernize CDFI/MDI systems and tech as well as recruit and upskill talent to increase CDFI/MDI capacity and ability to inject more capital into Black communities

4. Fund modernization & capacity-building and provide in-kind subject matter experts – $30M: help 4-5 CDFIs/MDIs* over 5 years modernize their core systems, hire and train staff, expand marketing and standup SWAT team of experts to conduct needs diagnostic, implement tech solution & provide technical assistance

  • Systems and technology modernization – $10M-15M: Add/upgrade core banking systems, hardware and productivity tools, train frontline workforce on new systems & technology and hire engineering specialists to support customization and news systems rollout – over 5 years
  • Talent and workforce – $10M: hire and train additional frontline lending staff and invest in recruiting, training, compensation & benefits and retention to increase in-house expertise and loan capacity – over 5 years
  • Other capacity-building and outreach – $8M: hire additional staff to increase custom borrower and technical assistance (e.g., credit building, MBE financing options, etc.) and increase community outreach to drive regional awareness and new pipeline projects – over 5 years

* In partnership with National Bankers Association and Appalachian Community Capital; CDFIs/MDIs being considered include: Unity National Bank, Unity Bank of Texas, PeopleFund, Houston Business Development Inc, etc.

Estimated impact (of all initiatives): ~$330M in additional loans per year to support ~30K MBEs

Education/HBCU & Workforce Development

Our ambition:

Lower financial burden for Black students, increase number of Black college graduates, increase Black workforce and executive representation and their access to high-paying jobs

5. Fund SFI program – $120M: fund the Student Freedom Initiative’s Income Contingent Alternative to Parent Plus* to support ~1.2K Black STEM students per year forever at 7 HBCUs**

* Student Freedom Initiative serves as lead (main contact if you are interested in learning more and funding this initiative)

** Minority Serving Institutions / HBCUs with STEM programs being considered: Texas Southern University, University of Houston, Prairie View A&M University, Houston Baptist University, University of Houston-Clear Lake, University of Houston-Downtown, University of St Thomas.  

Estimated impact (of all initiatives): 5K+ additional college grads & ~600 workers with senior exec positions / high-paying wages to drive ~$0.2B in economic growth

Digital Access

Our ambition:

Increase accessibility, affordability and adoption of high-speed Internet

6. Accelerate SCI’s digital access initiatives – up to $80M in donations or in-kind: invest in setting up internet connections / hotspots, offer laptops/Chromebooks and support adoption (through government subsidy technical assistance and digital literacy) to connect ~145K homes to high-speed internet in the Houston region*

7. Raise community awareness & adoption of Emergency Broadband Benefit: increase door-to-door and community outreach in low-income neighborhoods to get households onto EBB to help connect ~145K unconnected households 

* Community organization(s) being identified 

Estimated impact (of all initiatives): ~145K households connected to high-speed internet to unlock ~$3B in economic potential

Greater New Orleans, Louisiana

Lead community organization: Urban League of Louisiana

MBE Entrepreneurship & Supplier Diversity

Our ambition:

Increase the volume and value of Black-owned businesses – through corporate MBE spend and MBE startups & scaling

1. Scale Black Business Works Fund – $10M: grow the Urban League of Louisiana’s Black Business Works Fund to support ~3K-4K MBEs over 5 years with emergency working capital needs to support/sustain ~$1B+ in annual revenues

2. Scale technical assistance – $20M: fund the Urban League of Louisiana, New Orleans Business Alliance, Thrive New Orleans and Propellor to scale bookkeeping, B2C payment, marketing support & subsidized rent to scale 200+ MBEs from <$1M to $5M+ in annual revenue

Estimated impact (of all initiatives): 2.5x increase in MBE value & 8K+ new jobs, boosting Black community’s net worth by ~$2B+

Access to Capital (CDFI/MDI)

Our ambition:

Modernize CDFI/MDI systems and tech as well as recruit and upskill talent to increase CDFI/MDI capacity and ability to inject more capital into Black communities

3. Fund modernization & capacity-building and provide in-kind subject matter experts – $30M: help 4-5 CDFIs/MDIs* over 5 years modernize their core systems, hire and train staff, expand marketing and standup SWAT teams to conduct needs diagnostic, implement tech solution & provide technical assistance

  • Systems and technology modernization – $10M-15M: Add/upgrade core banking systems, hardware and productivity tools, train frontline workforce on new systems & technology and hire engineering specialists to support customization and news systems rollout – over 5 years
  • Talent and workforce – $10M: hire and train additional frontline lending staff and invest in recruiting, training, compensation & benefits and retention to increase in-house expertise and loan capacity – over 5 years
  • Other capacity-building and outreach – $8M: hire additional staff to increase custom borrower and technical assistance (e.g., credit building, MBE financing options, etc.) and increase community outreach to drive regional awareness and new pipeline projects – over 5 years

* In partnership with National Bankers Association and Appalachian Community Capital; CDFIs/MDIs being considered include: New Orleans Business Alliance (community convener), Liberty, TruFund, LiftFund, NewCorp, etc.

Estimated impact (of all initiatives): ~$330M in additional loans per year to support ~30K MBEs

Education/HBCU & Workforce Development

Our ambition:

Lower financial burden for Black students, increase number of Black college graduates, increase Black workforce and executive representation and their access to high-paying jobs

4. Subsidize internships & apprenticeships – $40M: fund the New Orleans Youth Alliance, YouthForce NOLA and the Urban League of Louisiana to place and help subsidize apprenticeships, internships and other work-based learning experiences for ~20K young adults in high-pay sectors (e.g., energy)

5. Fund SFI program – $12M: fund the Student Freedom Initiative’s Income Contingent Alternative to Parent Plus to support ~120 Black STEM students per year forever at 3 HBCUs*

* Minority Serving Institutions / HBCUs being considered: Dillard University, Southern University – New Orleans and Xavier University of Louisiana

6. Scale career prep – ~$10M: scale the New Orleans Youth Alliance and YouthForce NOLA with 15-20 coaches over 5 years to equip ~20K young adults with skills for high-paying industries, job search & prep and subsidized transportation

Estimated impact (of all initiatives): ~2K additional college graduates and ~20K workers with high-paying wages to drive ~$1B in economic growth

Digital Access

Our ambition:

Increase accessibility, affordability and adoption of high-speed Internet

7. Accelerate SCI’s digital access initiatives – up to $35M in donations or in-kind: partner with New Orleans’s Office of Information Technology & Innovation and Education SuperHighway to invest in setting up internet connections / hotspots, offering laptops/Chromebook and supporting adoption (through government subsidy technical assistance and digital literacy) to connect ~55K homes to high-speed internet in Greater New Orleans region

8. Raise community awareness & adoption of Emergency Broadband Benefit: increase door-to-door and community outreach in low-income neighborhoods to get households onto EBB to help connect ~55K unconnected households

Estimated impact (of all initiatives): 55K households connected to high-speed internet to unlock ~$1B in economic potential

Charlotte, North Carolina

Lead community organization: Charlotte Regional Business Alliance

MBE Entrepreneurship & Supplier Diversity

Our ambition:

Increase the volume and value of Black-owned businesses – through corporate MBE spend and MBE startups & scaling

1. Offer in-kind FTEs: provide 2-5 in-kind FTEs to the Charlotte Regional Business Alliance (CRBA) over 5 years to convene corporate partners, assess their MBE spend, develop pipeline to increase MBE spend to 5-10%+

2. Offer technical assistance expertise: partner with the Charlotte Regional Business Alliance (CRBA) to advise/mentor ~200 MBEs on capital/loan access to help them scale from <$10M to $50M+

3. Commit to supplier diversity: increase MBE spend in Charlotte region to 5-10%+

Estimated impact (of all initiatives): 3x increase in MBE value & ~13K new jobs, boosting Black community’s net worth by ~$2B+

Access to Capital (CDFI/MDI)

Our ambition:

Modernize CDFI/MDI systems and tech as well as recruit and upskill talent to increase CDFI/MDI capacity and ability to inject more capital into Black communities

4. Fund modernization & capacity-building and provide in-kind subject matter experts – $30M: help 4-5 CDFIs/MDIs* over 5 years modernize their core systems, hire and train staff, expand marketing and standup SWAT team of experts to conduct needs diagnostic, implement tech solution & provide technical assistance; in-kind experts to also help build out the MBE ecosystem through CDFIs/MDIs, market CDFI/MDI offerings and programs and help draft final loan agreements to qualify borrowers between investment fund(s) and CDFIs/MDIs

* CDFIs/MDIs being considered (examples and not exhaustive): Security Federal Bank, Institute / North Carolina Community Development Initiative, Sequoyah Fund Inc, Self-Help Credit Union, BEFCOR, Aspire Community Capital, etc.

  • Systems and technology modernization – $10M-15M: Add/upgrade core banking systems, hardware and productivity tools, train frontline workforce on new systems & technology and hire engineering specialists to support customization and news systems rollout – over 5 years
  • Talent and workforce – $10M: hire and train additional frontline lending staff and invest in recruiting, training, compensation & benefits and retention to increase in-house expertise and loan capacity – over 5 years
  • Other capacity-building and outreach – $8M: hire additional staff to increase custom borrower and technical assistance (e.g., credit building, MBE financing options, etc.) and increase community outreach to drive regional awareness and new pipeline projects – over 5 years

* In partnership with National Bankers Association and Appalachian Community Capital; CDFIs/MDIs being considered include: Security Federal Bank, Institute / North Carolina Community Development Initiative, Sequoyah Fund Inc, etc.

Estimated impact (of all initiatives): ~$330M in additional loans per year to support ~30K MBEs

Education/HBCU & Workforce Development

Our ambition:

Lower financial burden for Black students, increase number of Black college graduates, increase Black workforce and executive representation and their access to high-paying jobs

5. Fund SFI program – up to $10M: fund the Student Freedom Initiative’s HELPS program to support ~1.5K+ students per year at HBCUs* with emergency expenses – e.g., unexpected health costs, late rent payments, etc.

* Minority Serving Institutions / HBCUs in Charlotte that are being considered: Johnson C. Smith University, Johnson & Wales University – Charlotte, Charlotte Christian College

6. Provide in-kind staff: offer 2-5 FTEs to the Charlotte Regional Business Alliance (CRBA)over 5 years to track Black-/Brown-executive representation, convene corporate partners to develop executive pipeline and hiring plans and support corporate partners to increase representation from ~10% to 30%+

Estimated impact (of all initiatives): 2.5K+ additional college graduates and 2.5K workers with high-paying wages to drive ~$0.2B in economic growth

Digital Access

Our ambition:

Increase accessibility, affordability and adoption of high-speed Internet

7. Raise community awareness & adoption of Emergency Broadband Benefit: increase door-to-door and community outreach in low-income neighborhoods to get households onto EBB to help connect ~35K unconnected households

Estimated impact (of all initiatives): ~35K households get connected to high-speed internet to unlock ~$700M in economic potential for Charlotte

Birmingham, Alabama

Lead community organization: Prosper Birmingham

MBE Entrepreneurship & Supplier Diversity

Our ambition:

Increase the volume and value of Black-owned businesses – through corporate MBE spend and MBE startups & scaling

1. Fund startups and give access to investor network – $70M: grow the Prosper Health Tech Fund – powered by Gener8tor – and offer venture capital technical assistance to scale 50+ startups from <$1M to $5M+ in annual revenue; near-term priority is to secure $4M in venture investment by end of May 2022

2. Fund technical assistance – $25M: fund Prosper Birmingham, Magic City Match, and Birmingham Business Alliance to establish/expand business advisory programs, renovate and subsidize retail/office space for MBEs and scale coaches & support services (e.g., digital footprint, B2C platforms, accounting & bookkeeping, recruitment, etc.) to help 100+ MBEs scale from <$1M to $5M+ in annual revenue

Estimated impact (of all initiatives): 3x increase in annual MBE revenue & 8K+ new jobs, boosting Black community’s net worth by ~$2B+

Access to Capital (CDFI/MDI)

Our ambition:

Modernize CDFI/MDI systems and tech as well as recruit and upskill talent to increase CDFI/MDI capacity and ability to inject more capital into Black communities

3. Fund modernization & capacity-building and provide in-kind subject matter experts – $30M: help 4-5 CDFIs/MDIs* over 5 years modernize their core systems, hire and train staff, expand marketing and standup SWAT team of experts to conduct needs diagnostic, implement tech solution & provide technical assistance

  • Systems and technology modernization – $10M-15M: Add/upgrade core banking systems, hardware and productivity tools, train frontline workforce on new systems & technology and hire engineering specialists to support customization and news systems rollout – over 5 years
  • Talent and workforce – $10M: hire and train additional frontline lending staff and invest in recruiting, training, compensation & benefits and retention to increase in-house expertise and loan capacity – over 5 years
  • Other capacity-building and outreach – $8M: hire additional staff to increase custom borrower and technical assistance (e.g., credit building, MBE financing options, etc.) and increase community outreach to drive regional awareness and new pipeline projects – over 5 years

* In partnership with National Bankers Association and Appalachian Community Capital; CDFIs/MDIs being considered include: First Bancshares, Commonwealth National Bank, TruFund, Sabre Finance, Bronze Valley, etc.

Estimated impact (of all initiatives): ~$330M in additional loans per year to support ~30K MBEs

Education/HBCU & Workforce Development

Our ambition:

Lower financial burden for Black students, increase number of Black college graduates, increase Black workforce and executive representation and their access to high-paying jobs

4. Fund scholarships and hire coaches – ~$35M: scale Birmingham Promise fund to financially support 200-250 students per year over 4 years to increase college retention and graduation rates

5. Fund endowment – $2M: support 50 University of Alabama at Birmingham college students per year with housing to reduce their financial burden and increase college retention and graduation rates

Estimated impact (of all initiatives): 6.5K+ additional college graduates & 35K workers with high-paying wages to drive ~$1.2B in economic growth

Digital Access

Our ambition:

Increase accessibility, affordability and adoption of high-speed Internet

6. Raise community awareness & adoption of Emergency Broadband Benefit: increase door-to-door and community outreach in low-income neighborhoods to get households onto EBB to help connect ~35K unconnected households

Estimated impact (of all initiatives): 48K households get connected to high-speed internet to unlock ~$700M in economic potential for Jefferson County

Birmingham, Alabama

Lead community organization: Prosper Birmingham

MBE Entrepreneurship & Supplier Diversity

Our ambition:

Increase the volume and value of Black-owned businesses – through corporate MBE spend and MBE startups & scaling

1. Fund startups and give access to investor network – $70M: grow the Prosper Health Tech Fund – powered by Gener8tor – and offer venture capital technical assistance to scale 50+ startups from <$1M to $5M+ in annual revenue; near-term priority is to secure $4M in venture investment by end of May 2022

2. Fund technical assistance – $25M: fund Prosper Birmingham, Magic City Match, and Birmingham Business Alliance to establish/expand business advisory programs, renovate and subsidize retail/office space for MBEs and scale coaches & support services (e.g., digital footprint, B2C platforms, accounting & bookkeeping, recruitment, etc.) to help 100+ MBEs scale from <$1M to $5M+ in annual revenue

Estimated impact (of all initiatives): 3x increase in annual MBE revenue & 8K+ new jobs, boosting Black community’s net worth by ~$2B+

Access to Capital (CDFI/MDI)

Our ambition:

Modernize CDFI/MDI systems and tech as well as recruit and upskill talent to increase CDFI/MDI capacity and ability to inject more capital into Black communities

3. Fund modernization & capacity-building and provide in-kind subject matter experts – $30M: help 4-5 CDFIs/MDIs* over 5 years modernize their core systems, hire and train staff, expand marketing and standup SWAT team of experts to conduct needs diagnostic, implement tech solution & provide technical assistance

Systems and technology modernization – $10M-15M: Add/upgrade core banking systems, hardware and productivity tools, train frontline workforce on new systems & technology and hire engineering specialists to support customization and news systems rollout – over 5 years

Talent and workforce – $10M: hire and train additional frontline lending staff and invest in recruiting, training, compensation & benefits and retention to increase in-house expertise and loan capacity – over 5 years

Other capacity-building and outreach – $8M: hire additional staff to increase custom borrower and technical assistance (e.g., credit building, MBE financing options, etc.) and increase community outreach to drive regional awareness and new pipeline projects – over 5 years

* In partnership with National Bankers Association and Appalachian Community Capital; CDFIs/MDIs being considered include: First Bancshares, Commonwealth National Bank, TruFund, Sabre Finance, Bronze Valley, etc.

Estimated impact (of all initiatives): ~$330M in additional loans per year to support ~30K MBEs

Education/HBCU & Workforce Development

Our ambition:

Lower financial burden for Black students, increase number of Black college graduates, increase Black workforce and executive representation and their access to high-paying jobs

4. Fund scholarships and hire coaches – ~$35M: scale Birmingham Promise fund to financially support 200-250 students per year over 4 years to increase college retention and graduation rates

5. Fund endowment – $2M: support 50 University of Alabama at Birmingham college students per year with housing to reduce their financial burden and increase college retention and graduation rates

Estimated impact (of all initiatives): 6.5K+ additional college graduates & 35K workers with high-paying wages to drive ~$1.2B in economic growth

Digital Access

Our ambition:

Increase accessibility, affordability and adoption of high-speed Internet

6. Raise community awareness & adoption of Emergency Broadband Benefit: increase door-to-door and community outreach in low-income neighborhoods to get households onto EBB to help connect ~35K unconnected households

Estimated impact (of all initiatives): 48K households get connected to high-speed internet to unlock ~$700M in economic potential for Jefferson County