Harvard University’s endowment continues to impress, rising to $56.9 billion, a gain of $3.7 billion. This increase marks an 11.9% growth, surpassing last year’s 9.6% return and exceeding the university’s target of 8%. Interestingly, this year’s rise comes despite an operating loss of $113 million, Harvard’s first deficit since 2020.
Federal funding disruptions significantly impacted Harvard’s finances. The university saw an 8% drop in federally sponsored revenue this year. While federal research funds have started flowing again, they won’t be counted until FY 2026, creating a challenging financial environment for 2025.
On a brighter note, Harvard received a record $629 million in donations, an increase of $100 million compared to last year. Surprisingly, the ongoing political battles seemed to boost some donors’ interest, rather than deter them. The university has spent $2.5 billion from its endowment, aiding student financial support, where over 55% of undergraduates benefited from need-based scholarships totaling $250 million.
However, the financial outlook isn’t all rosy. The university’s overall expenses rose by 6% this year. Harvard warned of significant challenges ahead due to declining federal support and a possible endowment tax increase. The leadership has adopted strict measures, including a hiring freeze and budget cuts, to stabilize their finances.
Harvard President Alan Garber acknowledged that the past year was exceptionally tough. He stated that the university is now focusing on expanding funding sources and increasing operational efficiency. Experts agree that, while the endowment’s growth is promising, the upcoming fiscal landscape will demand careful navigation. The combination of rising expenses and variable funding is likely to keep financial discussions lively in the months to come.
For reference, you can access the detailed financial report in Harvard’s fiscal year 2025 financial report.
Source link
Judge Allison D. Burroughs,Harvard University,Endowment,Trump administration,Operating deficit,Department of Education,Philanthropy,Alan Garber