Harvard University has witnessed a significant decline in donations, with figures plummeting by nearly 15% in the fiscal year 2024 compared to the previous year. The university's donations decreased to just under $1.2 billion from nearly $1.4 billion in fiscal year 2023, reflecting a turbulent period for the Ivy League institution. This downturn follows a series of events, including widespread campus protests and administrative upheaval linked to the university's handling of issues surrounding the Israel-Hamas conflict.
The decline in financial commitments is notable as some affluent alumni have openly expressed their intent to suspend their support due to dissatisfaction with Harvard's response to the unrest that echoed across various higher education institutions nationwide. Despite this setback, Harvard heralded positive aspects within their financial report. The endowment reported a 9.6% return, reinforcing its position as the largest in the country at a value of $53.2 billion. Harvard President Alan Garber commented on the evolving support landscape, emphasizing alumni's continued interest in the university's future amidst these challenges.
However, he had previously flagged concerns about the downturn as early as March. This drop in donations is the largest recorded in the past nine years, as noted by Bloomberg, although a Harvard spokesperson highlighted that while donations fell below the average of $1.285 billion annually, they remain within historical fluctuations. Chief Financial Officer Ritu Kalra praised the endowment's performance but warned against over-reliance on it for regular expenses, as it comprises many specific programs and schools.
Kalra stressed the need for careful fiscal management to ensure support for future generations, aiming for an 8% endowment return to complement tuition and research funding. Currently, undergraduate tuition stands at $56,550, soaring beyond $80,000 when considering additional living expenses. Harvard's expenditures have outpaced revenues for the second consecutive year, with strategic investments like technology advancements contributing to this trend. Kalra suggested that while certain spending is strategic, sustained financial health requires revenue growth to align with expenses in the long term.
The university continues to face criticism more than a year following the initial Israel-Hamas conflict, which led to fervent campus protests and tensions regarding antisemitism across several prestigious institutions. The situation intensified with the resignation of former President Claudine Gay in January, adding to Harvard's ongoing challenges.
