Harvard University has incurred $2 billion in investment losses and spending despite raising $1.2 billion from donations, Bloomberg reported.
Colleges raised a record $41 billion in fiscal year 2016, and Harvard was the university that collected the most donations.
“Fundraising totals show how the richest colleges’ appeal to wealthy donors can help offset weak endowment returns,” the article states. “U.S. college endowments declined 1.9 percent on average.”
“Congress is considering a bill requiring donors to wealthy schools set aside a portion of their gift for financial aid or risk losing their tax deduction,” Bloomberg said.
Thirty-six percent of Harvard’s operating revenues have come from distributions from the university’s $35.7 billion endowment.
“When investment earnings for colleges are down, they’re also down in portfolios for wealthy individuals and foundation and donor-advised funds,” said Ann Kaplan, director of the survey from the Council for Aid to Education. “When one of these sources loses wealth, generally on the whole, they all lose ground at the same time.”