Harvard’s Coffers Take a Hit: Donations Plummet by $151 Million
In a startling turn of events, Harvard University has seen its donations nosedive by a staggering $151 million. This financial setback comes amid a turbulent year for the prestigious institution.
As a news reporter on the scene, I’ve been digging into the details of this unprecedented drop in philanthropic support. The numbers paint a stark picture: total contributions fell by 14% in fiscal year 2024. This marks one of the biggest year-over-year declines in the past decade.
The endowment at Harvard suffered the most from the decrease. Gifts to this crucial fund plunged by $193 million. It’s a blow that could have long-lasting effects on the university’s financial health.
However, the situation is not entirely bleak. In fact, current-use gifts, or funds available for immediate expenditure, increased by $42 million in comparison to the previous year. This encouraging trend indicates that some donors remain committed to meeting Harvard’s immediate needs.
So, what’s behind this dramatic shift in giving? The university has encountered a multitude of challenges. Several billionaire donors publicly cut ties with Harvard over its handling of campus antisemitism. This came on the heels of a leadership crisis that saw President Claudine Gay resign after just six months in office.
Harvard’s current president, Alan M. Garber, spoke candidly about the situation. “Some of the new commitments have been disappointing compared to past years,” he admitted in a recent interview. However, he also hinted at a potential turnaround, saying, “There are also some indications that we will see improvements in the future.”
The drop in endowment gifts is particularly worrying for Harvard’s long-term outlook. Although the university cannot immediately spend these donations, they provide crucial investment income that drives its operations. A sustained decline could limit Harvard’s ability to grow and expand its programs.
It’s worth noting that philanthropy remains a cornerstone of Harvard’s financial structure. Despite the recent troubles, donations still accounted for 45% of the university’s revenue in fiscal year 2024. The endowment’s income distribution even rose to a record $2.4 billion.
Interestingly, small-dollar donations played a significant role in propping up Harvard’s finances. Over 75% of gifts averaged just $150 per donor. This grassroots support helped offset some of the losses from big-money backers.
Harvard’s Chief Financial Officer, Ritu Kalra, acknowledges that challenges lie ahead. “The future will be more complicated,” she said, pointing to potential difficulties in maintaining both giving levels and investment returns.
President Garber and his team will be under intense scrutiny as Harvard navigates these turbulent financial waters. Can they rebuild trust with major donors while nurturing the broad base of smaller contributors? The answer to this question could shape the university’s future for years to come.
One thing is clear: Harvard’s fundraising machine isn’t invincible. This recent stumble serves as a wake-up call for an institution that has long seemed untouchable. As the dust settles, the true test will be whether Harvard can adapt and emerge stronger from this financial setback.