Harvard University Endowment Posts 9.6% Gain, Reaches $53.2 ...

Harvard University's endowment now stands at $53.2 billion, after a 9.6% gain in FY 2024.

Harvard University’s endowment realized a 9.6% gain for Fiscal Year 2024, a significant improvement over last year’s 2.9% gain.

According to the university’s financial report, the endowment’s total value (after distributions to help pay for operations and the addition of new gifts during the year) stood at $53.2 billion, an increase of $2.5 billion from $50.7 billion at the end of fiscal year 2023.

Harvard had targeted a return of 8%, and with this year’s performance, it has seen an annualized average return of 9.3% over the past seven years.

The 9.6% gain placed Harvard third among those Ivy League schools that have reported their latest results, behind Columbia University at 11.5% and Brown University at 11.3%.

Cornell University’s endowment increased by 8.7%; Dartmouth College posted an 8.4% gain; while the University of Pennsylvania’s endowment increased 7.1%. Yale University and Princeton University have not yet posted their 2024 endowment results.

Harvard achieved an operating surplus of $45 million on a revenue base of $6.5 billion. Distributions from the endowment provided $2.4 billion or 37% of total revenue for the year. Included in that amount was $749 million in financial aid across the University, including $250 million for undergraduates enrolled in Harvard College.

While Harvard’s revenue grew by 6% or $375 million during FY 2024, it was outpaced by expense growth of 9% or $515 million.

According to the Harvard Crimson, new gifts to the endowment decreased by about $190 million from last year, dropping to $368 million this year from $561 million in FY 2023. That decrease was partially offset by a $42 million increase in current-use gifts compared to fiscal year 2023.

Harvard’s leaders had been bracing for a decline in philanthropic giving during a year that saw the university struggle through one crisis after another, including leadership turnover, campus protests over the Hamas-Israel war in Gaza, and congressional scrutiny over allegations of antisemitism on campus.

Last week, Harvard President Alan M. Garber told The Crimson he was disappointed with the university’s fundraising numbers. Now, that disappointment can be quantified, with the university suffering a net decline of about $150 million in private giving from the prior year.

“Some of the new commitments have been disappointing compared to past years,” Garber said. “There are also some indications that we will see improvements in the future,” Garber added. “I can’t get more specific than that right now.”

In FY2023, the average university endowment return was 7.7%, net of fees. So far the FY 2024 endowment results reported by several universities suggest we are likely to see a second straight year of strong investment turnarounds from Fiscal Year 2022, when the average return was -8.0%.

The annual study of college and university endowments, prepared by the National Association of College and University Business Officers and Commonfund Institute, will be released in February.