Harvard faces $150m. drop in donations amid controversial handling of antisemitism

With student protests regarding the Israel-Hamas war bolstering tensions on campus, Harvard's financial future looks complicated

 Graduating students hold a sign reading "There Are No Universities Left in Gaza" during the 373rd Commencement Exercises at Harvard University, amid the ongoing conflict between Israel and the Palestinian Islamist group Hamas, in Cambridge, Massachusetts, US, May 23, 2024. (photo credit: REUTERS/BRIAN SNYDER)
Graduating students hold a sign reading "There Are No Universities Left in Gaza" during the 373rd Commencement Exercises at Harvard University, amid the ongoing conflict between Israel and the Palestinian Islamist group Hamas, in Cambridge, Massachusetts, US, May 23, 2024.
(photo credit: REUTERS/BRIAN SNYDER)

Harvard University has suffered a $150 million drop in donations in the 2024 fiscal year as a result of the university's handling of campus antisemitism, according to The Harvard Crimson this week.

This marks a 14% decline in donations.

The steepest drop came in donations to Harvard’s endowment, which fell by $193 million, a one-third reduction compared to the previous year. However, donations for immediate use increased by $42 million, showcasing a mixed philanthropic response.

The fall in contributions has put pressure on Harvard’s leadership, with interim president Alan Garber acknowledging the concerning figures, stating that “some of the new commitments have been disappointing compared to past years.”

The Financial Times noted that protests and student activism around the Israel-Hamas conflict have exacerbated tensions on campus, leading prominent donors, such as billionaire Ken Griffin and Len Blavatnik, to sever ties with the university.

Griffin, in particular, publicly criticized Harvard for failing to maintain “Western values” in the face of rising antisemitism, while Blavatnik's foundation, which has contributed over $270 million, also suspended its financial support.

 Harvard University president Claudine Gay resigned at the beginning of 2024, after she and other presidents of Ivy League schools were widely criticized for their congressional testimony about antisemitism on campus. (credit: KEN CEDENO/REUTERS)
Harvard University president Claudine Gay resigned at the beginning of 2024, after she and other presidents of Ivy League schools were widely criticized for their congressional testimony about antisemitism on campus. (credit: KEN CEDENO/REUTERS)

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, pushing total holdings back to $53.2 billion. Yet, the leadership crisis following the resignation of former president Claudine Gay amid plagiarism allegations and her handling of the protests has added to the ongoing instability. As The Hill reported, Gay’s departure marked a turning point, with Garber stepping in to try to rebuild relationships with donors and alumni.

Harvard's financial future may be more complicated, with its chief financial officer, Ritu Kalra, cautioning that both "the level of giving and the level of returns may be difficult to sustain." While endowment contributions play a crucial role in funding operations and expanding Harvard’s educational mission, a sustained decline could pose long-term risks to the university's growth.

Amid the turbulence, Harvard has continued to see strong support from smaller donors, with 75% of gifts averaging $150 per person. Still, the public scrutiny and leadership turnover have left the university in a delicate position as it navigates the challenges ahead.