Historically Black Colleges and Universities have been in existence in the United States since the mid-1800s. Currently there are 105, which include private and public institutions, with most being four-year programs. In this study, we compare graduation rates of Historically Black Colleges and Universities to predominately White institutions and analyze the use of graduation rates as a performance measure for determining funding policies. The study design consists of 10 Historically Black Colleges and Universities and 10 predominately White institutions, selected and matched by purposive sampling based on variables of student body population size, geographical location, public or private institution charter type, and student body socioeconomic factors. Results suggest that Historically Black Colleges and Universities have lower overall graduation rates than matched predominately White institutions. However, these institutions perform equally well when exclusively considering graduation rates of African-American students. Recommendations for Historically Black Colleges and Universities to improve academic outcomes and incorporate proven educational strategies are discussed. (Contains 7 tables and 1 figure.)