Harvard University is facing a significant financial setback as donors express their discontent over the institution’s mishandling of antisemitism on campus.

At Harvard, generosity drives the bottom line, with philanthropy contributing a staggering 45% to its $5.8 billion annual revenue. Beyond covering 9% of yearly operational expenses, these gifts have, over decades, built up to form more than a third of Harvard’s $51 billion endowment fund.

However, according to the university’s recently released financial report, donations have plummeted by nearly 15% in 2024. It comes as several high-profile alumni publicly announced their decision to suspend support, including Pershing Square founder Bill Ackman and former Victoria’s Secret CEO Leslie Wexner.

In a statement, Harvard President Alan Garber acknowledged the school’s financial challenges while attempting to put a positive spin on donor engagement.

“As the University addressed long-standing challenges that were highlighted by the events of the past year, alumni and others demonstrated both their concern and their care for the future of the institution through growing levels of support over the course of the year,” Garber said.

However, Garber’s optimistic tone contrasts sharply with his earlier comments to The Harvard Crimson, where he described the year’s financial commitments as “disappointing” compared to previous years. For the second consecutive year, Harvard’s operating expenses have outpaced its operating revenues. While some of this discrepancy can be attributed to strategic investments in technology infrastructure and AI capabilities, the current trajectory is unsustainable without a corresponding increase in revenue.

“That requires us to spend responsibly from the endowment, as we have to be able to support future generations of students and scholars even if we face periods of lower growth,” Harvard Chief Financial Officer Ritu Kalra tells Business Insider.

Harvard’s reputation remains under intense scrutiny in the wake of the October 7, 2023 Hamas attack on Israel, which ignited a firestorm of antisemitism across top universities. With undergraduate tuition now exceeding $56,000 per year, and total costs surpassing $80,000 when including housing and other expenses, the pressure is mounting on the Ivy League school to become the once shining beacon of academic excellence and ethical leadership it has long claimed to be.