Harvard faces $150M endowment cut amid controversial handling of anti-Semitism

Harvard University faces a $150 million reduction in endowments in fiscal year 2024, as the university faces campus antipathy. Harvard Crimson this week

This marks a 14% drop in donations

The biggest drop in donations came to Harvard's endowment, which fell by $193 million, a one-third drop from the previous year. However, grants for immediate use increased by $42 million, demonstrating a mixed philanthropic response.

The decline in contributions has put pressure on Harvard's leadership, with interim president Alan Gerber acknowledging the corresponding figures, saying that “some of the new pledges are disappointing compared to last year.”

The Financial Times Noting that protests and student activism surrounding the Israel-Hamas conflict have raised tensions on campus, prominent donors such as billionaire Ken Griffin and Len Blavatnik have called for severing ties with the university.

Griffin, in particular, publicly criticized Harvard for failing to uphold “Western values” in the face of growing anti-Semitism, while Blavatnik's foundation, which contributed more than $270 million, also suspended its financial support.

Financially stable, leadership in crisis

Despite the challenges, Harvard's financial stability remains relatively strong, with its endowment generating a 9.6 percent return in fiscal year 2024, returning total holdings to $53.2 billion. Still, the leadership crisis following the resignation of former president Claudine Gay amid accusations of theft and her handling of protests has added to the ongoing unrest. as the mountain Reportedly, Gay's departure marked a turning point, with Gerber taking steps to try to rebuild relationships with donors and alumni.

Harvard's financial future could be more complicated, with its chief financial officer Ritu Kalra warning that “it may be difficult to sustain both the level of endowment and the level of return.” While endowment contributions play an important role in funding and expanding Harvard's educational mission, a sustained decline could pose long-term risks to the university's growth.

Amidst the turmoil, Harvard continues to have strong support from small donors, with 75% of gifts averaging $150 per person. Still, public scrutiny and leadership turnover put the university in a delicate position as it navigates the challenges ahead.