In its most recent fiscal year, Harvard has witnessed a drop in financial support from numerous wealthy donors, a shift that follows the university’s response to the Israel-Hamas war and tensions derived from the conflict on campus.
Some big-name alumni publicly vowed to suspend donations to Harvard after its response to the political unrest within higher education institutions across the country last year. Former President Claudine Gay resigned in January following a plagiarism scandal sparked by the conflict.
In fiscal year 2024, which ended June 30, the Ivy League institution brought in just under $1.2 billion in cash gifts, per a Harvard financial report released Thursday. According to the review, that figure represents a nearly 15% drop since fiscal year 2023, which saw the school collect just under $1.4 billion.
Bloomberg reported the drop in donations since fiscal year 2023 represents the biggest dip the private university has seen in the last nine years.
Earlier this month, Harvard President Alan Garber hinted at the coming decline in donations, telling the university’s student newspaper, The Harvard Crimson, that the year’s commitments were “disappointing” compared to prior years. The student outlet also reported he had privately warned about a decline in philanthropic gifts as far back as March.
“As the University addressed long-standing challenges that were highlighted by the events of the past year, alumni and others demonstrated both their concern and their care for the future of the institution through growing levels of support over the course of the year,” Garber said in a statement shared with Business Insider on Thursday.
He also emphasized positive aspects of the financial report, including a 9.6% investment return for the school’s endowment which is valued at $53.2 billion, the largest in the country.
Chief Financial Officer Ritu Kalra lauded the university’s endowment return in a conversation with Harvard’s online public relations arm, but cautioned that the fund is not a checking account; it’s 14,600 different endowments, many of which are delegated to a specific school or program.
“That requires us to spend responsibly from the endowment, as we have to be able to support future generations of students and scholars even if we face periods of lower growth,” she said.
Harvard’s operating expenses have reportedly increased faster than its operating revenues for a second year in a row, according to Kalra, who added that some of the discrepancy between the two can be explained by long-term, strategic investments, such as improved technology infrastructure and AI capabilities.
Kalra says the university aims for an 8% endowment return, a figure that is essential in helping to make up for the gap left over after tuition revenues and funding research.
Currently, tuition for an undergraduate degree at the Ivy League institution is about $56,550, according to the university website. This number climbs to upwards of $80,000 when housing, food, and student services are accounted for.
