Harvard University experienced its most significant drop in donations in a decade, with a decrease of about $151 million compared to last year — marking a nearly 15% downtrend. This marks the largest decline since 2015, reflecting a turbulent period for the Ivy League institution.
The main reason for this decline is the campus protests following the war in Gaza, which led to prominent university donors halting their funds, and the resignation of former president Prof. Claudine Gay, who faced harsh criticism regarding her handling of antisemitism on campus.
The university's annual financial report indicated that Harvard received $1.17 billion in donations for the year ending in June 2024, a significantly lower number than the $1.38 billion received year-on-year. The greatest impact was on its endowment fund, which saw a 34% cut in donations, totaling a $368.1 million loss.
Harvard's new president, Prof. Alan Garber, expressed his disappointment with this year's fundraising results, noting concerns they could signal future challenges in fundraising efforts. He stressed that some previous commitments still continue to support the university, but the financial report highlights the decline in donation revenue and the complex economic situation that created significant uncertainty regarding continued funding.
The pro-Palestinian protests on campus, sparked by the university's response to the Hamas attack on October 7, led several key donors including the Ofer family, hedge fund mogul Ken Griffin and investor Len Blavatnik to withhold their contributions to Harvard.
Despite the drop in donations, the university remains the wealthiest in the world, with an endowment fund valued at $53.2 billion, which yielded a 9.6% return over the past year. The financial report said the fund contributes about 37% of the institution's annual revenue, generating $2.4 billion that supports funding for professors' salaries, scholarships and research.
University expenses continued to rise, primarily due to increases in salaries and benefits, but Harvard managed to end the year with a budget surplus of around $45 million. Despite this, Prof. Garber and the university's administration stressed the need for cautious financial management in the future, given that expenses continue to outgrow revenue.
Harvard is the second Ivy League university to report a drop in donations this year following a wave of protests across campuses. New York’s Columbia University York, which spearheaded pro-Palestinian demonstrations on U.S. campuses, recorded a nearly 30% drop in donations during its annual giving day.
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