Harvard University experienced a sharp decline in philanthropic contributions in fiscal year 2024, with donations dropping by $151 million, a 14% reduction from the previous year. The most notable decrease was in donations to Harvard endowment, which fell by $193 million, marking one of the most significant annual drops in a decade. However, current-use gifts, which can be spent immediately, saw a 9% increase, contributing $42 million more than the previous year.
The University’s fundraising challenges are largely attributed to public backlash from major donors following Harvard’s controversial response to antisemitism on campus, particularly in the wake of Hamas’ Oct. 7 attack on Israel. Harvard President Alan M. Garber, serving as interim president after the sudden resignation of Claudine Gay, expressed his concerns over the disappointing fundraising figures, though he remains optimistic about future improvements.
Endowment Contributions and Long-Term Implications
Harvard’s endowment is crucial for sustaining the University’s financial health. Unlike current-use gifts, which are spent immediately, endowment contributions are preserved and only the annual investment returns are used for the University’s expenses. These funds support a range of initiatives, including financial aid and research. A continued decline in Harvard endowment donations could jeopardize Harvard’s ability to grow and expand its operations.
The leadership turnover at Harvard, especially Gay’s resignation amid accusations of plagiarism and criticism over her handling of campus antisemitism, has added to the University’s fundraising woes. Garber, now acting as interim president, is tasked with restoring relationships with disillusioned donors. His role as chief fundraiser will be pivotal in determining how quickly Harvard can recover from this significant decline.
Philanthropy Remains Vital, but Future Uncertain
Despite the drop in Harvard endowment contributions, philanthropy continues to play a critical role in Harvard’s financial stability, accounting for 45% of the University’s revenue. In fiscal year 2024, endowment income distribution reached $2.4 billion, underscoring its importance. Current-use gifts, which saw a surge, were instrumental in maintaining Harvard’s financial operations, with 75% of these gifts averaging $150 per donor, indicating strong support from a broad base of contributors.
However, challenges remain. Harvard’s Chief Financial Officer, Ritu Kalra, acknowledged that while the University remains grateful for its donors’ continued belief in its mission, sustaining the current level of giving and returns may prove difficult in the coming months. Kalra emphasized the importance of donor support in maintaining Harvard’s academic and financial objectives.
Garber, in his interview with The Crimson, shared his belief that donors are reassured by the University’s current direction, expressing hope for a quieter academic year ahead and stronger fundraising efforts. While the latest fiscal year presents concerns, the University looks to navigate its path forward with a renewed focus on rebuilding donor confidence.
