Harvard University is facing a significant fundraising setback, with total philanthropic contributions dropping by 14 percent to $151 million in fiscal year 2024. This decline follows the public departure of several billionaire donors who were dissatisfied with the university’s handling of antisemitism on campus.
The decrease marks one of the largest annual drops in donations the institution has seen in the past decade, largely affecting endowment contributions, which saw a reduction of $193 million. Notably, current-use gifts, which can be spent immediately, experienced an increase of $42 million compared to the previous fiscal year.
University leaders had been expressing concerns about fundraising performance throughout a challenging year characterized by a leadership crisis and intensified scrutiny over Harvard’s initial response to the Hamas attack on Israel on October 7.
Harvard President Alan M. Garber recently shared his dissatisfaction with the fundraising results during an interview. He had previously alerted alumni about the significant decline in donations. Garber commented, “Some of the new commitments have been disappointing compared to past years,” but he also indicated that there are signs of potential improvement.
Unlike current-use donations, which can be accessed right away, endowment gifts are invested, and only their returns are available for funding. The income generated from these endowment contributions plays a crucial role in the university’s financial operations, supporting areas such as financial aid and research initiatives. A continued drop in endowment donations could threaten Harvard’s long-term growth and financial health.
Fluctuations in donations following leadership changes are not unusual for Harvard. The unexpected resignation of former President Claudine Gay in January, amid allegations of plagiarism and criticism of her handling of antisemitism, led to a crisis for the university. Garber has taken on the role of interim president and chief fundraiser since her departure, working to mend relations with discontented donors.
Despite the challenges, philanthropy remains vital to Harvard’s financial stability, accounting for 45 percent of the university’s revenue for fiscal year 2023. The endowment income distribution is at a record high of $2.4 billion, continuing to serve as a critical funding source.
Current-use gifts, which can be fully utilized, increased by 9 percent, significantly contributing to the university’s operating revenue. Most of these contributions came in small amounts, with over 75 percent averaging around $150 per donor.
The report does not include contributions made after June 2024. Garber believes that alumni and donors are finding reassurance in the university’s current direction and noted that the academic year has shown signs of stability so far.
Ritu Kalra, Harvard’s Chief Financial Officer, acknowledged potential challenges ahead. She expressed gratitude for the continued support from donors, stating, “The future will be more complicated… but we remain grateful to our donors for their steadfast belief in Harvard’s academic mission.”