The University saw its greatest reduction in contributions to the endowment, which dropped by $193 million.
“There are also some indications that we will see improvements in the future.” Unlike current-use gifts, donations intended for Harvard’s endowment cannot immediately be spent — only the annual investment returns from these gifts are available for use.
Donations to the endowment have supported robust financial aid, new research initiatives, and expanded operating expenses to further Harvard’s educational mission.
A sustained decline in endowment contributions would likely pose a long-term threat to the University’s ability to grow beyond its current operations.
Current-use gifts differ from endowment gifts as they can be spent in its entirety.
It now costs $151 million to address Harvard’s fundraising crisis.
As a result of several billionaire donors publicly severing ties with Harvard over the university’s handling of antisemitism on campus, total philanthropic contributions decreased by 14% in the fiscal year 2024.
One of the biggest declines in donations over the previous ten years, measured in millions, is the $151 million decline. The University experienced a $193 million decline in endowment contributions, the largest decline in history. By $42 million over the fiscal year 2023, current-use gifts, on the other hand, continued to burgeon.
Amidst a turbulent year characterized by a crisis in leadership and increased public scrutiny over the University’s mishandled initial statement following Hamas’ October attacks, senior university officials had been privately warning for months about the unimpressive philanthropy figures. 7 assault on the State of Israel.
In an interview with The Crimson last week, Harvard President Alan M. Garber ’76 voiced his public disapproval of the University’s most recent fundraising statistics. After privately alerting alumni to a significant drop in contributions in March, he made his remarks.
“When compared to previous years, some of the new commitments have been disappointing,” Garber stated. Additionally, there are some signs that suggest future advancements. “.
Donations meant for Harvard’s endowment, unlike gifts for current use, cannot be used right away; instead, only the annual investment returns from these gifts are put to good use.
Even though these gifts are protected by the endowment, the investment income they produce is now essential to the University’s ability to make ends meet. Contributions towards the endowment have facilitated substantial financial assistance, novel research endeavors, and increased operational costs in order to advance Harvard’s educational objective.
Long-term growth of the University beyond its current operations would probably be threatened by a persistent decline in endowment contributions.
While major leadership turnovers at Harvard often cause fluctuations in donations, the University was thrown into disarray following the unexpected resignation of former President Claduine Gay in January due to plagiarism allegations and criticism of her handling of antisemitism on campus.
After less than six months in office, Gay resigned, which led to Garber being abruptly promoted to the position of interim president of the university. He has worked hard over the last ten months to take on the position of Harvard’s chief fund-raiser and mend fences with disheartened donors.
Despite reservations, Harvard’s financial stability is largely supported by philanthropy. It continued to be a vital source of funding for the University’s operations, accounting for 45% of total revenue, in line with fiscal year 2023. The endowment income distribution increased to $2.04 billion, its highest levels.
Unlike endowment gifts, current-use gifts are fully spendable. The $42 million, or 9% increase in current use gifts, was a significant factor in the philanthropic contribution to the University’s operating income.
Over 75% of the gifts had an average donor value of $150, and the majority of the contributions were small-dollar gifts.
Contributions made after June 2024, outside of the most recent fiscal year, are not included in the report.
During his interview with The Crimson, Garber expressed his belief that donors and alumni are “reassured by the direction that the University is taking.”. “.
He went on, “They are relieved that this academic year has been somewhat quieter, at least so far.”.
According to someone with knowledge of the university’s fundraising initiatives, Harvard’s June 2024 campaign “was particularly strong month.”.
In an interview with the university-run journal Harvard Gazette, Harvard Chief Financial Officer Ritu Kalra acknowledged that the university may still experience some difficulties in the months to come.
“We are thankful to our donors for their unwavering belief in Harvard’s academic mission, but the future will be more complicated and it may be challenging to sustain both the level of giving and the level of returns,” Kalra stated.
“Everything we do depends on their support,” she said.
Writer for staff Sidney K. You can contact Lee at sidney. email: lee@thecrimson.com. You can follow her at @sidneyklee on Twitter.
