Donations to Harvard’s Endowment Drop by More Than $150 Million

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

Total philanthropic contributions fell by 14 percent in fiscal year 2024 as several billionaire donors publicly severed ties with Harvard over its response to campus antisemitism.

The $151 million decline marks one of the most significant year-over-year drops in donations in the past decade. The University saw its greatest reduction in contributions to the endowment, which dropped by $193 million. Current-use gifts, however, remained strong — increasing by $42 million compared to fiscal year 2023.

Senior University leaders had privately warned for months about the lackluster philanthropy figures amid a tumultuous year marked by a leadership crisis and heightened public scrutiny over the University’s botched initial statement after 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 were below expectations. By Addison Y. Liu

Harvard President Alan M. Garber ’76 publicly expressed his displeasure with the University’s latest fundraising figures in an interview with The Crimson last week. His comments came after privately warning alumni in March of a considerable decline in contributions.

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

Unlike current-use gifts, donations intended for Harvard’s endowment cannot immediately be spent — only the annual investment returns from these gifts are available for use.

While these contributions are preserved in the endowment, the investment income they generate has become vital to the University’s financial operations. Donations to the endowment have supported robust financial aid, new research initiatives, and expanded operating expenses to further Harvard’s educational mission.

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

Though it is not abnormal for Harvard to experience fluctuations in donations following major leadership turnover, former Harvard President Claduine Gay’s surprise resignation in January amid allegations of plagiarism and criticism of her response to campus antisemitism plunged the University into crisis.

Gay stepped down from office after just more than six months into her tenure, resulting in Garber’s sudden elevation as the University’s interim president. Over the past 10 months, he has sought to assume the role as Harvard’s chief fundraiser and repair relationships with disillusioned donors.

Despite concerns, philanthropy continues to be a major pillar of Harvard’s financial stability. It accounted for 45 percent of the University’s revenue — consistent with fiscal year 2023 — and endowment income distribution rose to $2.4 billion, its highest levels, remaining a critical source of funding the University’s operations.

Current-use gifts differ from endowment gifts as they can be spent in its entirety. The 9 percent increase in current use gifts — amounting to $42 million — played a crucial role in philanthropy’s contribution to the University’s operating revenue.

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

These contributions were often in the form of small-dollar donations, with more than 75 percent of gifts averaging $150 per donor.

The report, however, does not account for contributions that occurred after June 2024, outside of the most recent fiscal year.

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

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

One person with knowledge of the University’s fundraising efforts said that June 2024 “was a particularly strong month” for Harvard.

Harvard Chief Financial Officer Ritu Kalra acknowledged in an interview with the Harvard Gazette, a University-run publication, that Harvard may still face some struggles in the coming months.

“The future will be more complicated — both the level of giving and the level of returns may be difficult to sustain — but we remain grateful to our donors for their steadfast belief in Harvard’s academic mission,” Kalra said.

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

—Staff writer Sidney K. Lee can be reached at sidney.lee@thecrimson.com. Follow her on Twitter @sidneyklee.

—Staff writer Thomas J. Mete can be reached at thomas.mete@thecrimson.com. Follow him on Twitter @thomasjmete.