### Harvard Sees Significant Drop in Donations Amid Middle East Conflict Fallout

Harvard University experienced a notable decline in donations for the most recent fiscal year, with financial support diminishing in the wake of the university's response to the Israel-Hamas conflict. According to a financial report released on Thursday, the leading Ivy League institution secured just under $1.2 billion in cash gifts for fiscal year 2024, which concluded on June 30. This figure marks a nearly 15% decrease from fiscal year 2023 when donations totaled close to $1.4 billion.

The reduction in contributions comes after a tumultuous year marked by intense campus protests and significant changes within the university’s administration, stemming from unrest related to the Middle East crisis. In response to Harvard's handling of the situation, a number of prominent alumni publicly announced their decision to suspend financial support.

Harvard President Alan Garber acknowledged the challenging circumstances while noting that alumni and supporters continued to show their commitment to the institution. Garber highlighted a 9.6% return on investments for the school's endowment, which stands at $53.2 billion, making it the largest in the nation.

“While the University navigated long-standing challenges underscored by recent events, the donor community demonstrated both concern and care for the future through ongoing support,” Garber stated.

Despite the positive endowment returns, Garber had previously indicated a downturn in donations, describing the year's commitments as "disappointing" in a conversation with The Harvard Crimson. The current drop in philanthropic contributions represents the most significant decline in nine years, as reported by Bloomberg.

Chief Financial Officer Ritu Kalra commended the endowment's performance but stressed the importance of responsible spending. The fund comprises 14,600 different endowments, many with specific allocations, necessitating prudent expenditure to ensure sustained support for future generations.

Kalra pointed out that while the university targets an 8% endowment return to bridge the financial gap beyond tuition and research funding, it has faced growing operating expenses. These costs have outpaced revenue growth for the second consecutive year, driven by long-term investments in technology and artificial intelligence.

“We need to spend wisely from the endowment to maintain support for future scholars and students, even during periods of lower growth,” Kalra emphasized. “While recent spending has been strategic, it will not be sustainable without proportional revenue growth over time.”

Harvard continues to be scrutinized following more than a year of upheaval, which included the resignation of then-President Claudine Gay over a plagiarism scandal linked to the conflict. The university’s actions during the crisis have remained a point of contention among supporters and critics alike.