The Scoop: Harvard sends message of change to donors after disappointing financial year

Harvard’s coffers took a hit as mega-donors followed through on promises to pull back gifts over the school’s response to acts of antisemitism on campus related to the Hamas-Israel War.

The Wall Street Journal reported that the prestigious university received $1.17 billion in gifts for the fiscal year that ended June 30. This amount is lower than the $1.38 billion it received during the same period last year.

While the university’s endowment gained 9.6% for the fiscal year, gifts to the endowment fell 34% to $368.1 million, per WSJ.  Distributions from the endowment makes up 37% of Harvard’s revenue for the year, according to the university’s financial report for this fiscal year.

Following the Hamas attacks in Israel on Oct. 27, 2023, protests erupted on campuses across the United States, including Harvard. As the conflict grew into a full-blown war, some pro-Palestinian protests resulted in acts of antisemitism. Former Harvard President Claudine Gay stepped down in January amid criticism of her response to the situation as well as allegations of plagiarism.

As a result, mega-donors billionaire Ken Griffin and the family foundation of investor Len Blavatnik suspended their giving to the school until the university showed commitment to making meaningful changes.

Why it matters: Highlighting an organization’s values is crucial for building strong investor and donor relationships. Supporters need to feel confident that their investments align with their personal beliefs.

In Harvard’s case, the university had to regain the trust of donors like Griffin and Blavatnik, who had apparently lost faith due to recent events. To achieve this, the school needed to send a clear message about its commitment to promoting acceptance and tolerance on campus. That was a central part of the university’s 2024 fiscal report.

 In a statement in the report, Harvard President Alan Garber said plainly that Harvard has endured a difficult year. But they’ve used what they’ve used during that time to make necessary improvements. That includes conducting multiple task forces to explore what has taken place on campus since the Hamas attacks in Israel last year.

In June, the school released a series of task force findings, which admitted that Jewish, Muslim and Arab students had been discriminated against and bullied on campus. Garber described them in the report as “paths to more meaningful communication and constructive disagreement.”

As part of its communications on Thursday, Garber wrote that the school is committed to rebuilding a “sense of belonging” and a “genuine acceptance” on campus.

“Our community is what matters most,” his statement reads. “That is why its renewal and care are paramount, and why we have launched efforts to understand where and how we can improve.”

As part of the financial report, Garber also made sure to point out all the good work, research and important work the university is doing to improve the world. He specifically highlighted that the work is made possible by the generous financial donations and gifts the school receives every year.

Obviously, actions will speak louder than words in the end and Harvard will need to further show donors that the work is being done. But taking accountability and painting a picture of what lies ahead is an important step in that process.

“Our University will emerge stronger from this time – not in spite of being tested, but because of it,” Garber wrote.

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Casey Weldon is a reporter for PR Daily. Follow him on LinkedIn.