Harvard University, with an endowment of nearly $52 billion, faces significant financial challenges following the federal government’s decision to freeze $2.2 billion in multi-year grants and $60 million in contracts. The university’s endowment averages $2.1 million per student, surpassing the GDP of many countries. Last fiscal year, it generated a 9.6% return. Harvard received $368 million in gifts to its endowment in 2024, with over three-quarters of these averaging $150 per donor. The endowment’s largest allocations are to private equity (39%) and hedge funds (32%), with public equities at 14% and real estate and bonds/TIPs at 5% each. Over the past seven years, Harvard reduced its exposure to real estate and natural resources from 25% to 6%, increasing its private equity investments. The endowment distributed $2.4 billion last year, with 70% directed by donors. Harvard has $9.6 billion in unrestricted endowed funds, which could be liquidated under certain conditions, though this would impact future cash flow. The university aims to spend around 5% of its endowment annually. Amidst these financial strains, Harvard has implemented austerity measures, including a hiring pause and denying admission to waitlisted graduate students. It has also issued $750 million in taxable bonds and $244 million in tax-exempt bonds. Moody’s maintains Harvard’s AAA bond rating but has a negative outlook on higher education overall.
B_Ray4ever
@BRay4ever
·
Apr 16 Perhaps we should stop classifying universities as non profits … Especially ones like Harvard that have an endowment currently valued at $53.2 billion.
Old School Veteran, USAF & USMC
@0331M60
·
3h Harvard has over $50 billion in their endowment. They make millions in profit every year. They are the largest property owner in Boston and Cambridge.
They should be paying taxes.
Jellenne
@jellen805
·
Apr 14 Nothing unlawful placing DEI restrictions on taxpayer funding.
Perspective:
As of 6/30/24, Harvard University’s endowment is valued at $53.2 billion.
Annual operating budget for the fiscal year 2024 was approximately $6.5 billion.Result: Pay for your own crap Harvard.
Phil Holloway
@PhilHollowayEsq
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Apr 14 I would love an explanation as to why you think you are entitled to one dime of my tax money?Harvard University’s endowment is the largest in the world, valued at $53.2 billion at the end of fiscal year 2024
T C
@simple_schmoe
·
11h If this is remotely true, why in Hades flames is the Fed govt giving any tax $ to Harvard or any pvt university? Harvard has a $53B endowement. Properly managed, they can thrive on their own resources.
Linda Marie Lovison
@lilo623
·
Apr 16 Harvard is sitting on a massive endowment valued at $53.2 billion dollars.
@Harvard
does not need taxpayer funding, at all.
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