Harvard FAS raises $222 million in donations in six months amid $365 million budget deficit

The Faculty of Arts and Sciences (FAS) at Harvard University has raised $222 million in donations during the second half of 2025, according to an internal presentation reported by The Harvard Crimson. The amount is $62 million higher than the funds collected during the same period in 2024 and puts the faculty on track for one of its strongest fundraising years in recent memory.

The rise in donations comes at a time when the university is dealing with financial challenges. Last fall, the FAS announced a $365 million budget deficit and has since introduced several cost-cutting measures, including reducing PhD admissions, cutting budgets for non-tenure-track faculty, and consolidating certain staff roles.

Large donations from a small group of donors

A significant portion of the $222 million came from a small group of major donors, according to details from an internal presentation reported by The Harvard Crimson. The presentation, delivered in January by FAS Development Dean Michael J. Faber, showed that 13 donor households contributed gifts ranging between $5 million and $9.99 million.

The slides also highlighted the school’s first eight-figure gift of the year — a $20 million restricted endowment from a single donor who was not publicly named. The funds have been designated for specific institutional priorities.

Responding to questions about the financial situation, FAS spokesperson James M. Chisholm referred to remarks made earlier by FAS Dean Hopi E. Hoekstra during a faculty meeting in November.

“What we are facing is not a short-term budget gap that can be solved with temporary cuts,” Hoekstra said. “Instead we face a structural problem that demands structural solutions.”

Funds directed to fellowships, financial aid and college initiatives

Some fundraising initiatives tied to recent academic decisions have already started producing results. According to reporting by The Harvard Crimson, Hoekstra told faculty members that the school has raised $64 million to endow new PhD fellowships after graduate admissions were sharply reduced last semester.

The Faculty of Arts and Sciences accounted for roughly 25 percent of Harvard’s total fundraising during the first half of fiscal year 2026. Other major contributors included Harvard Business School and Harvard Medical School, which contributed 17 percent and 18 percent of the university’s fundraising respectively.

More than $34 million of the donations were directed to the Harvard College Fund, while about $35 million went toward the university’s financial aid programme. The Harvard School of Engineering and Applied Sciences also reported $21.8 million in gifts and pledges during the first half of fiscal year 2026 — more than triple the average raised over the previous four years.

Harvard adopts cautious spending approach

Even as fundraising numbers rise, university officials remain cautious about spending. According to internal financial slides cited by The Harvard Crimson, between 7.5 percent and 25 percent of Harvard’s operating base could be affected by financial pressures linked to federal policies.

The presentation, delivered by Harvard Chief Financial Officer Ritu Kalra, pointed to potential risks such as higher endowment taxes and economic pressures linked to tariffs. The university is also exploring ways to expand revenue through philanthropic donations for science and by strengthening corporate partnerships.

At the same time, Harvard has begun implementing structural changes to reduce long-term costs. The Faculty of Arts and Sciences is working on plans to centralise some staff positions, with consulting support from McKinsey & Company.

Layoffs have already occurred in other parts of the university. Dozens of employees were recently laid off from Harvard’s alumni affairs and development office, while 38 information technology workers lost their jobs last fall.
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