Harvard's Endowment Swells to $57 Billion, Despite Financial Headwinds

Harvard University, the world's wealthiest institution, reported a significant increase in its endowment to nearly $57 billion in its latest fiscal year, despite facing financial challenges due to federal cuts. The university has been grappling with the Trump administration's efforts to weaken its finances by stripping it of federal funding. Harvard's operating deficit was its first since the coronavirus pandemic, with about $116 million in research funding vanished in a matter of weeks. However, the university expects to make up some of the ground lost after a federal judge ruled in September that the government must restart the flow of research money it had blocked.

Key Takeaways:

• Harvard's endowment grew to nearly $57 billion in the last fiscal year, an increase of about $3.7 billion.
• The university reported an operating loss of about $113 million, its first since the coronavirus pandemic.
• About $116 million in research funding vanished in a matter of weeks due to federal cuts.
• Harvard expects to account for court-reinstated funding in the fiscal year that started July 1.
• The university's operating revenues increased about 3 percent, and overall net assets climbed almost 7 percent to nearly $69 billion.
• Harvard's chief financial officer and treasurer wrote that structural changes and reductions across schools and units will be necessary to address financial challenges.
• The university received a record $629 million in current use gifts, which can be used immediately, but less than a third of those contributions were given without limitations.

Statistics:

• Harvard's endowment grew to nearly $57 billion in the last fiscal year.
• The university's operating loss was about $113 million.
• About $116 million in research funding vanished in a matter of weeks due to federal cuts.
• Harvard expects to account for court-reinstated funding in the fiscal year that started July 1 and has spent $978 million on "services purchased."
• The university received a record $629 million in current use gifts, which can be used immediately.
• Harvard's overall net assets climbed almost 7 percent to nearly $69 billion.

Sources:

• [1] The New York Times, "Harvard Ends Fiscal Year with $57 Billion Endowment, but Faces Financial Headwinds," by [], published on [September 24, 2020].
• [2] Harvard's Report, "Financial Report of the University For the Fiscal Year Ended June 30" by [Alan M. Garber], published in [2020].