Accrediting agencies assess higher education institutions using performance indicators that are outdated and assessed incorrectly. This research uses various quantitative methods including multiple regression to provide data to understand the financial impacts of these indicators on mission driven historically Black colleges and universities (HBCUs). The research question guiding this research examined whether academic accrediting agencies', such as the Southern Association of Colleges and Schools, performance indicators affect state funding allocations for HBCUs. Resource dependence theory recognizes leadership in organizations is influenced by adverse external environmental factors. Mission-based achievement outcomes and funding tied to inappropriate outcomes create both internal and external institutional complications. This research was limited to 11 HBCU institutions in the United States, and as such, the research findings may not be generalizable to a larger population of educational institutions. However, the research methodology may be replicated in larger studies that include funding comparisons to predominantly White institutions. Results indicated a positive relationship between performance indicators, retention, and enrollment to state funding mechanisms with considerable differences between states that use state performance-based budgets and those that do not. This research is important for positive social change by informing public policy decision makers on the social equity implications of using inappropriate performance measures and helping them formulate and/or change policies on funding HBCUs at the state and federal level. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]