Since the Hamas attack on Israel on Oct. 7, a range of alumni, from billionaires to recent graduates, have expressed their intention to stop donations until Harvard takes more decisive action against antisemitism.
Since the Hamas attack on Israel on Oct. 7, a range of alumni, from billionaires to recent graduates, have expressed their intention to stop donations until Harvard takes more decisive action against antisemitism.
Harvard University is currently facing a significant challenge as a result of a growing donor rebellion. This discord stems from concerns over the university’s handling of issues related to antisemitism, as well as other controversies.
The situation has been exacerbated by the recent pause in donations from billionaire Len Blavatnik and his family foundation, which has historically contributed at least $270 million to Harvard.
“The problem Harvard has is that all their sources of revenue are strained. Their ability to raise money is clearly strained and their ability to leverage federal programs is potentially at risk,” said David Bergeron, a retired deputy assistant secretary in the U.S. Education Department.
If donors reduce their contributions, Harvard will need to either reduce expenses, draw more from its endowment, or increase revenue by admitting a higher number of students who can pay full tuition, according to Jonathon Jacobson, an alumnus of Harvard Business School and a former portfolio manager for the university’s endowment.
Key developments
Blavatnik family foundation’s pause in donations: Following university President Claudine Gay’s congressional testimony on antisemitism, which received widespread criticism, the Blavatnik family has decided to halt their substantial financial contributions. This decision is anchored in their concern over what they perceive as rampant antisemitism on campus.
Wider donor discontent: The Blavatnik family is not alone in their decision. Since the Hamas attack on Israel on Oct. 7, a range of alumni, from billionaires to recent graduates, have expressed their intention to stop donations until Harvard takes more decisive action against antisemitism.
Financial implications: Harvard’s finances are under strain. With investment returns lagging and potential cuts in federal support being considered by Congress, the halt in donations from wealthy alumni could significantly impact the university’s financial stability.
Accusations against President Claudine Gay: Adding to the university’s challenges, President Gay faces accusations of plagiarism. While the university’s governing council found instances of inadequate citation in her academic writings, they did not deem these to be a violation of research misconduct standards.
Congressional and educational sector scrutiny: The U.S. House of Representatives has initiated an inquiry into Harvard’s handling of the plagiarism allegations. Furthermore, Harvard and other prestigious institutions are being investigated for possible violations of the 1965 Civil Rights Act in relation to antisemitism and Islamophobia on campus.
“Congress is already thinking about taking money from those institutions like Harvard anyway. It can’t help them to be in the middle of another controversy,” said Bergeron, the former Education Department official.
Potential impact on financial aid and diversity goals: Harvard’s commitment to financial aid and maintaining a diverse student body may be jeopardized if the decline in donations persists. The university has been increasingly reliant on endowment distributions and current-use gifts for its revenue.
Broader context
This situation at Harvard University is reflective of broader issues facing many elite educational institutions, where responses to social and political issues are closely scrutinized by their diverse and influential alumni networks. The decisions made by these institutions can have far-reaching consequences, not only for their immediate campus communities but also for their long-term reputations and financial health.
As Harvard navigates these complex challenges, the university’s actions and responses in the coming months will be critical in determining its ability to uphold its commitments to academic excellence, diversity, and social responsibility while maintaining the trust and support of its global alumni community.
