Donations to Harvard's Endowment fall by more than $150 million | News

Harvard's fundraising crisis now has a price: $151 million.

Total philanthropic giving fell 14 percent in fiscal year 2024 as several billionaire donors publicly cut ties with Harvard over its response to campus anti-Semitism.

The $151 million decline represents one of the most significant year-over-year declines in donations in the past decade. The university saw its largest decline in endowment contributions, which fell by $193 million. However, current use donations remained strong, increasing $42 million compared to fiscal year 2023.

High-ranking university leaders had privately warned for months about philanthropy's lackluster numbers in a tumultuous year marked by a leadership crisis and heightened public scrutiny over the university's botched first statement following Hamas' Oct. 7 attack on Israel.

Alan M. Garber is the 31st president of Harvard University. Garber had previously warned that the university's fundraising results fell short of expectations. By Addison Y. Liu

Harvard President Alan M. Garber '76 publicly expressed his displeasure with the university's latest fundraising numbers in an interview with The Crimson last week. His comments came after he privately warned alumni in March of a significant drop in contributions.

“Some of the new commitments have been disappointing compared to previous years,” Garber said. “There are also some signs that we will see improvements in the future.”

Unlike current use gifts, donations designated for the Harvard Endowment cannot be spent immediately—only the annual investment returns from these gifts are available for use.

While these contributions remain in the endowment, the resulting capital gains are critical to the University's financial operations. Gifts to the foundation have funded significant grants, new research initiatives, and increased operating costs to advance Harvard's educational mission.

A continued decline in endowment contributions would likely pose a long-term threat to the University's ability to grow beyond its current operations.

Although it is not unusual for Harvard to experience fluctuations in donations following a major leadership change, the surprise resignation of former Harvard President Claduine Gay in January amid allegations of plagiarism and criticism of her response to anti-Semitism on campus plunged the university a crisis.

Gay resigned her position after just over six months in office, resulting in Garber's sudden promotion to interim president of the university. Over the past decade, he has tried to assume the role of Harvard's top fundraiser and repair relationships with disillusioned donors.

Despite concerns, philanthropy continues to be an important pillar of Harvard's financial stability. It accounted for 45 percent of the university's revenue – consistent with fiscal year 2023 – and the distribution of endowment income increased to $2.4 billion, the highest, and remained a key source of funding for the university's operations.

Gifts currently in use differ from foundation gifts in that they can be spent in full. The 9 percent increase in ongoing donations – amounting to $42 million – played a critical role in philanthropy's contribution to the university's operating revenue.

Harvard Management Corporation is located at 600 Atlantic Ave in Boston. By Julian J. Giordano

These contributions were often small donations, with more than 75 percent of donations averaging $150 per donor.

However, the report does not take into account contributions made after June 2024, i.e. outside the last financial year.

In his interview with The Crimson, Garber said he believes alumni and donors are “reassured by the direction the university is taking.”

“They are at least relieved that this academic year has been a little quieter so far,” he added.

A person with knowledge of the university's fundraising efforts said June 2024 was “a particularly strong month” for Harvard.

Ritu Kalra, Harvard's chief financial officer, acknowledged in an interview with the Harvard Gazette, a publication run by the university, that Harvard may still face some difficulties in the coming months.

“The future will be more complicated — both gift levels and returns will be difficult to sustain — but we remain grateful to our donors for their unwavering belief in Harvard’s academic mission,” Kalra said.

“Your support is vital to everything we do,” she added.

—Staff writer Sidney K. Lee can be reached at [email protected]. Follow her on Twitter @sidneyklee.

—Staff writer Thomas J. Mete can be reached at [email protected]. Follow him on Twitter @thomasjmete.