The announcement comes after Dr. Irma McClaurin resigned the presidency last Tuesday.
Yancy is the former president of Johnson C. Smith University in Charlotte. She served as interim president before McClaurin was named to the post.
McClaurun served as the university's 15th president for less than a year following a September 2010 appointment. Sources tell ABC11 that her relationships with faculty and staff quickly soured when she fired several professors soon after taking control.
The 145-year-old old historically black college faces many challenges. It was hit by a tornado in the spring and the Willie E. Gary Student Center, which housed the cafeteria and two dormitories, remains under repair.
Shaw also faces money problems. It has more than $30M in debt, but school leaders say they're paying bills and taking care of business.
In addition to Yancy's departure, McClaurin's chief of staff, Mack Ward, and Vice President for Academic Affairs Marilyn Sutton-Haywood are also out.