Donations Decline Overview
Donations to Harvard University and its endowment declined by more than $150 million in the Ivy League institution's 2024 fiscal year amid backlash toward the administration's handling of antisemitism on campus. Total donations were down by $151 million, or 14%, from the prior year. Within that total, donations to Harvard's endowment fell by nearly $193 million from a year ago, while donations for current use gifts increased by $42 million in that time frame.
Context of the Decline
The decline followed calls for the resignation of campus leaders who were criticized for allowing antisemitic protests to persist on campus after Hamas' attack on Israel. The Harvard Crimson noted that it represents one of the most significant year-over-year drops in donations in the past decade. The outlet interviewed Harvard President Alan Garber, who had warned alumni earlier this year about lackluster fundraising figures.
Some of the new commitments have been disappointing compared to past years. There are also some indications that we will see improvements in the future.
Donor Sentiment and Financial Warnings
Garber told the outlet Harvard's alumni and donor base is reassured by the direction that the university is taking and they are relieved, at least that, so far, this academic year has been somewhat quieter. Harvard's annual financial report warned that its current fundraising levels may not be sustainable over the long term.
About 8% of fiscal year 2024 operating revenue came from gifts for current use, primarily payments on prior pledges. At over $525 million, current use giving reached the second highest level in Harvard’s history. While still surpassing $1 billion of fundraising, such levels may not be sustainable looking forward. We are grateful to those who have continued to direct their philanthropy to the University as a reflection of their commitment to Harvard’s academic mission.
Broader Impacts and Background
Last year's fundraising haul pushed the size of Harvard's endowment to $53.2 billion, and distributions from the endowment amounted to $2.4 billion, or 37% of Harvard's total revenue for the year. Former Harvard President Claudine Gay resigned in January after her controversial testimony before Congress in which she said it would depend on the context of calls for the genocide of Jews to determine whether it violates university policy; she was also embroiled in a plagiarism controversy. Billionaire Harvard alum Bill Ackman said in December that Gay's failures have led to billions of dollars of canceled, paused and withdrawn donations to the university.
I am personally aware of more than a billion dollars of terminated donations from a small group of Harvard's most generous Jewish and non-Jewish alumni.
Additional Metrics
Harvard's early application program also saw a 17% decline in applications received through mid-December 2023 compared to the prior year.
